Indian renewable energy sector gets $6.6 billion in the first quarter of this fiscal: IEEFA report

After a slow financial year 20-21 (FY21) for investments in the Indian renewable energy (RE) sector, the first quarter of FY22 is back on track with funding of $6.6 billion, said the Institute for Energy Economics and Financial Analysis (IEEFA) in a report.

Between April and July 21, the investment in the sector has already surpassed $6.4 billion. The ongoing fiscal year is also on track and can “easily” exceed the $8.4 billion of FY20, IEEFA added.

“Rebounding energy demand and  the surge of commitments from banks and financial institutions to exit fossil fuel financing is helping to drive investment into Indian renewable energy infrastructure,” says author Vibhuti Garg, energy economist and India lead at IEEFA.

Adani Green’s acquisition of Softbank’s SB Energy for a total value of $3.5 billion in May ranked as the biggest deal of the quarter. Other major deals included ACME Solar, ReNew Power, Azure Power, and Avaada.

Green bonds issued by Indian companies such as ReNew, Azure, and ACME are also attracting huge investments, and are expected to grow in size.

The first two weeks of August 2021 got off to a strong start too, with deals involving CleanMax and ReNew crossing $600 million already. Including the $414 million bond by Azure, this month alone has crossed $1 billion. In an earlier report, IEEFA had outlined that India will need at least $500 billion of investment in the Indian renewable energy industry to meet the 450 GW target that the Centre wants to achieve. $300 billion of that would be used for wind and solar infrastructure, $50 billion for grid firming investments, and $150 billion on expanding and modernising India’s transmission infrastructure.

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