Renewable energy investments to rise by 2023
The last three years proved to be quite favourable for the renewable energy sector as they saw fresh investments surging to Rs 1.1 lakh crore. A Crisil report showed that this capital infusion was led by solar and partly by wind power. It also stated that investor interest and enabling regulations can boost the investments into the renewables sector by as much as 35% in fiscal 2023 to Rs 1.5 lakh crore.
The study noted that these investments have been driven by the push towards clean energy, sustained enabling regulations, visible through removal of tariff caps, consistent regulatory policies, and rising renewable energy targets. This is evident in tenders getting oversubscribed amid strong participation by global investors despite the prices plunging to rock bottom of under Rs 1.4 a unit for solar.
Hetal Gandhi, a director at the agency, observes, “Global investments have risen from around 15 per cent of total capital investment during fiscals 2015-18 to around 50 per cent of total investments in fiscals 2018-20. Going by this trend, global investments and internal accruals can generate around half of the Rs 1.5 lakh crore investments required.”