New Delhi: Project finance flowing into renewable energy projects recorded a 63 percent jump in 2023 compared to 2022 levels, reaching the Rs 30,255 crore ($3.66 billion) mark, according to a report by the Centre for Financial Accountability.

The report, titled ‘Coal vs RE Investment in 2024’, states that while there was an increase in project finance lending to renewable energy projects, there was no project finance lending to new coal power projects for the third consecutive year. However, corporate finance lending to coal power and mining companies totalled $3 billion.

Solar power projects dominated the renewable energy deals in 2023, accounting for 49 percent of the total, followed by hybrid projects at 46 percent and wind energy at 6 percent.

“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,” said Joe Athialy, Executive Director of the Centre for Financial Accountability.

In 2023, over 96 percent of coal-linked company financing in India from commercial banks was facilitated through underwriting, with loans making up the remaining 4 percent.

US-based banks led the corporate financing to coal-linked companies, contributing 65 percent of the total.

India has achieved 188 GW of non-fossil fuel capacity in 2023, the report said.

The report said primary financing accounted for 77 percent of project deals, while refinancing comprised the remaining 23 percent.

Commercial banks provided 68 percent of renewable energy loans, totalling Rs 20,625 crore ($2,497 million).

The state-wise figures show that Gujarat received 25 percent of the financed capacity, amounting to Rs 9,857 crore ($1,193 million), followed by Karnataka with Rs 4,593 crore ($556 million).

Union Minister Pralhad Joshi said earlier this week that India added nearly 15 GW of renewable energy capacity during April-November of the current financial year, almost double the 7.54 GW added during the same period last year.

Addressing the CII International Energy Conference and Exhibition (IECE) here, the Minister for Renewable Energy further stated that India’s total installed capacity in the non-fossil fuel energy sector had reached 214 GW, marking an increase of over 14 percent compared to the same period last year.

Additionally, he pointed out that 2.3 GW of new capacity was added in November 2024 alone, reflecting a four-fold increase from the 566 MW added in November 2023.

Union Minister Joshi reiterated the Government’s commitment to achieving 500 GW of non-fossil fuel-based capacity by 2030.

 

 

 

 

 

 

 

–IANS