India's Green Energy Investment surpassed Thermal Power, pegged at over $20 billion

Witnessing a record low solar tariffs of ₹2.44 per unit, India slated 100GW of clean energy from solar projects of the targeted 175GW of clean energy capacity by 2022.

Boosting India’s green economy, investments in the country’s renewable energy sector doubled over the last five years to around $20 billion in 2018, surpassing the capital expenditure in the thermal power sector, reports a study.

The joint study  commissioned by Paris-based International Energy Agency (IEA) and Council on Energy, Environment and Water (CEEW) said “reduced risk perception of financiers funding renewable energy projects in India resulted in investments in the sector doubling over the last five years."

This comes in the backdrop of India’s additional clean energy investment requirement of around $80 billion till 2022, growing more than three-fold to $250 billion during 2023-30.

“Over the period from 2014 to 2018, interest rate spreads for both wind and solar PV declined by 75 to 125 basis points. This indicates declining risk perceptions," the report said, adding that “Ambitious targets, supportive policies, and falling technology costs have improved the attractiveness of financing utility-scale solar PV and wind projects.