New Delhi, Dec 20 (IANS): Project finance flowing into renewable energy projects recorded a 63 per cent jump in 2023 compared to 2022 levels, to scale 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 per cent of the total, followed by hybrid projects at 46 per cent and wind energy at 6 per cent.
"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.
Over 96 per cent of coal-linked company financing in India from commercial banks was facilitated through underwriting in 2023, with loans making up the remaining 4 per cent.
US-based banks led the corporate financing to coal-linked companies, contributing 65 per cent of the total.
India has achieved 188 GW of non-fossil fuel capacity in 2023, the report said.
Primary financing accounted for 77 per cent of project deals while refinancing comprised the remaining 23 per cent, the report said.
Commercial banks provided 68 per cent of renewable energy loans, totalling Rs 20,625 crore ($2,497 million).
The state-wise figures show that Gujarat received 25 per cent of the financed capacity, amounting to Rs 9,857 crore ($1,193 million), followed by Karnataka with Rs 4,593 crore ($556 million).
India has added nearly 15 GW of renewable energy capacity during April-November in the current financial year, which is almost double the 7.54 GW added during the same period last year, Union Minister Pralhad Joshi said earlier this week
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 has reached 214 GW, marking an increase of over 14 per cent 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.