Page 44 - Banking Finance July 2019

ARTICLE

With a potential capacity of 363 gigawatts
(GW) and with policies focused on the
renewable energy sector, Northern India is
expected to become the hub for renewable
energy in India.

According to data released by the
Department for Promotion of Industry and
Internal Trade (DPIIT), FDI inflows in the
Indian non-conventional energy sector
between April 2000 and December 2018
stood at US$ 7.48 billion. More than US$ 42
billion has been invested in India's
renewable energy sector since 2014. New
investments in clean energy in the country
reached US$ 11.1 billion in 2018.
Installed renewable power generation capacity has
increased at a fast pace over the past few years, posting a Some major investments and developments in
CAGR of 19.78% between FY14-18. The focus of Government
the Indian renewable energy sector are as
of India has shifted to clean energy after it ratified the Paris
follows:
Agreement. With the increased support of government and
Inter-state distribution of wind power was started in
improved economics, the sector has become attractive from
August 2018.
investors perspective. As India looks to meet its energy
demand on its own, which is expected to reach 15,820 TWh In the first half of 2018, India installed 1 MW of solar
by 2040, renewable energy is set to play an important role. capacity every hour.
With 28 deals, clean energy made up 27% of US$ 4.4
As of February 2019, total renewable power installed
billion merger and acquisition (M&A) deals which took
capacity (excluding large hydro) in the country stood at
place in India's power sector in 2017.
75.06 GW. Off-grid renewable power capacity has also
increased. As of October 2018, generation capacities for In March 2018, ReNew Power finalized a deal
Waste to Energy, Biomass Gasifiers, SPV systems stood at estimated at US$ 1.55 billion to acquire Ostro Energy
175.28 MWeq, 163.37 MWeq and 767.51 MWeq, and make it the largest renewable energy company in
respectively. India.
World's largest solar park named 'Shakti Sthala' was
launched in Karnataka in March 2018 with an
investment of Rs 16,500 crore (US$ 2.55 billion).
Solar sector in India received investments of over US$
10 billion in CY 2017.

Private Equity (PE) investments in India's wind and solar
power have increased by 47 per cent in 2017 (January
1 to September 25) to US$ 920 million, across nine deals,
as compared to US$ 630 million coming from 10 deals
during the corresponding period in 2016.
As of March 2019, Eversource Capital, a Joint venture
of Everstone and Lightsource plans to invest US$ 1 billion
in renewable energy in India through its Green Growth
Equity Fund.

44 | 2019 | JULY | BANKING FINANCE