APN News

  • Wednesday, October, 2021| Today's Market | Current Time: 02:38:04
  • The light at the end of the tunnel seems to be growing for the renewables sector in India. The effects of the global pandemic that caused an economic slowdown seem to be nothing but a memory of a distant past. According to the Institute for Energy Economics and Financial Analysis (IEEFA), green investment is seeing a sudden spurt in growth.

    In just a short span of months between April and July, investments reached $6.6 billion, well over $6.4 billion recorded in the same period in FY21. Experts predict that if the current trend continues, renewable investments in India are expected to overhaul last year’s total of $8.4 billion. The rising tide of investments can be attributed to the heavyweights like ReNew Power, Adani, SBI and Tata Power, among others, promoting renewables as an innovative avenue for growth.

    Renewables companies like Adani Green Energy Limited (AGEL), have been instrumental in pivoting India’s energy sector towards a green future. The company has a massive portfolio of renewable projects spread out over 87 locations across 11 states and has even overhauled its set target of 25GW renewables capacity four years ahead of schedule. The Group’s Chairman, Gautam Adani, has made it clear that the company is on track to realize its goal of becoming the world’s largest renewable energy company by 2030.

    True to his words, AGEL was a winner of the 1.2GW wind auction by Solar Energy Corporation of India (SECI). Along with ReNew Power, Sembcorp, EverGreen and Azure Power, Adani was declared winners of the 1.2GW wind project auction by SECI, who had floated the tender earlier in May. The power from these projects will be sold to the distribution companies in Madhya Pradesh.

    Aside from companies like ReNew Power and Adani, SBI and other financial institutes are also responsible for the rebound in renewable energy investment. Banks have been eager to capitalize on the shift towards cleaner energy as they present lucrative long-term investment opportunities. India’s largest public sector bank, SBI, revealed in its FY21 results that over $4.26 billion had been approved for financing renewable projects. According to the bank, financing of 752 projects with a total installed capacity of 13.8GW had been approved until March 2021. It has even gone on to introduce a ‘Renewable Energy Policy’, incorporating ground and rooftop solar power, small hydro and waste-to-energy projects. India already ranks third in the renewable energy country attractive index in 2021. Having achieved its milestone of 100GW of installed renewable capacity, the focus is now on reaching a total installed capacity of 450GW by 2030. With companies shifting their focus towards de-carbonization and banking institutions increasing their renewable assets, one can expect the spotlight to be on players like Adani, SBI and ReNew Power in the near future