Renewable project financing soars amid coal plants lending
Renewables captured 80 percent of energy project funding in 2018
A Delhi-based think-tank has reported that 49 renewable energy projects in India received loans worth rupees (Rs) 24,442 crore as those to coal plants declined by 90 percent to Rs 6,081 crore in 2018.
The think-tank – Centre for Financial Accountability – published its finding after studying the financial closure of 2018 calendar year of 54 renewable and coal-fired power projects.
The 54 energy projects attracted total lending of Rs 30,524 crore, 80 per cent of which is attributed to renewable energy projects while the rest went to coal-fired power plants. In 2018, only 5 coal-fired power plants with a combined capacity of 3.8 Gigawatt (Gw) received finance totalling Rs 6,081 crore. By contrast, in 2017, 12 coal-fired projects with 17 Gw capacity received Rs 60,767 crore finance.
“In 2018, a total of 49 renewable energy projects with a combined capacity of 4.7 Gw obtained loans of Rs 24,442 crore. Solar PV attracted 60 per cent of this finance while the remaining 40 per cent went to wind energy projects,” the report states.
A few Indian states paved the way for the growth of the renewable energy generation capacity in 2018. Projects in Karnataka, Madhya Pradesh and Gujarat attracted half of the entire country’s project finance for renewables across 23 solar PV and wind projects. Meanwhile, Chhattisgarh and West Bengal together attracted finance for three coal-fired power projects but no renewables.
