In Short : India’s renewable energy sector attracted a record investment in 2023, reflecting growing global confidence in the country’s clean energy transition. Key contributions came from solar, wind, and green hydrogen projects, supported by favorable policies and private sector participation. This milestone strengthens India’s position as a leader in renewable energy, advancing its sustainability goals and economic growth.
In Detail : A new report by the Centre for Financial Accountability reveals that project finance flowing into India’s renewable energy sector surged by 63% in 2023, reaching Rs 30,255 crore ($3.66 billion) compared to 2022 figures.
The report, titled ‘Coal vs RE Investment in 2024’, highlights that while project finance lending to renewable energy projects has seen a significant rise, no new coal power projects received project finance lending for the third year running. However, corporate finance lending to coal power and mining companies did amount to $3 billion.
Solar power projects were the primary recipients of renewable energy investment in 2023, securing 49% of the total, followed by hybrid projects at 46% and wind energy at 6%. Joe Athialy, Executive Director of the Centre for Financial Accountability, commented, “We’ve consistently seen an increase in project finance to solar and wind power projects. This shows there is investor confidence in renewable power projects.”
In contrast, over 96% of coal-linked company financing from commercial banks in India was facilitated through underwriting in 2023, with loans constituting just 4%. Notably, US-based banks provided the majority 65% of corporate financing to coal-linked companies.
According to the report, India achieved 188 GW of non-fossil fuel capacity in 2023. Of the project deals, 77% were primary financing, with the remaining 23% comprising refinancing. Commercial banks contributed 68% of renewable energy loans, totalling Rs 20,625 crore ($2,497 million).
Gujarat led the way in attracting renewable energy investment, receiving 25% of the financed capacity, equivalent to Rs 9,857 crore ($1,193 million). Karnataka followed with Rs 4,593 crore ($556 million).
Addressing the CII International Energy Conference and Exhibition (IECE), Union Minister Pralhad Joshi stated that India added nearly 15 GW of renewable energy capacity between April and November of the current financial year, almost double the 7.54 GW added during the same period last year.
He further noted that India’s total installed capacity in the non-fossil fuel energy sector has reached 214 GW, a rise of over 14% compared to the previous year. In November 2024 alone, 2.3 GW of new capacity was added, a four-fold increase from the 566 MW added in November 2023.
Minister Joshi reiterated the Government’s commitment to achieving 500 GW of non-fossil fuel-based capacity by 2030.
