Bloomberg New Energy Finance has released figures showing that investment in clean energy in India jumped to $7.9 billion in 2014, up from $7 billion the year earlier. However, Bloomberg also predicts that clean energy investment is likely to jump up past $10 billion this year for the first time since 2011.
According to Bloomberg New Energy Finance’s (BNEF) figures, India maintained its position as the 7th largest clean energy investor in the world, despite several years of declining investment figures. In 2011, investment jumped up from $9.3 billion in 2010 to a record $13.1 billion. However, the next two years saw a downward trend — 2012 at $7.8 billion and 2013 at $7 billion.
However, thanks in part to the newly installed government elected in May of 2014, India’s clean energy investment is benefiting from support for clean energy reforms.
“The planned reforms are going to strengthen renewables in India further but the federal establishment also needs to align with the state governments,” said Ashish Sethia, head of South & Southeast Asia at Bloomberg New Energy Finance. “That is where the projects are installed, the power generated and consumed.”
The good news, however, is that while 2014 was a growth year, 2015 is expected to be even better.
According to BNEF, major initiatives such as India’s plans for 24/7 power for the entire population, 100 GW of solar and investment of over $100 billion in clean energy in the next five years are both gaining traction.
“After two years of continuous decline in investments, in both India and around the world, the trend reversed last year,” said Bharat Bhushan Agrawal, lead India solar analyst at Bloomberg New Energy Finance. “We expect investment in India to rise in 2015 and later, particularly with the rise of solar power.”
India has been in the news a lot lately, thanks in part to US President Barack Obama’s visit to the country. Earlier this week, President Obama made it clear that the US “very much support India’s ambitions goal for solar energy, and stand ready to speed this expansion with additional financing.”
“Interest in India from domestic and foreign investors has grown in the last six months,” said Sethia. “Early signs of policy interventions are positive. Specific yearly installation targets would further help investors.”
And American investment has a good home in India, where BNEF analysis shows that the country has one of the lowest levelized costs of renewable energy generation in the world. Project installations are also expected to rise in 2015, with BENF expecting 2.5 GW worth of new solar capacity to be installed over the year, and wind installations expected to reach 2.8 GW — both of which are increases on 2014 figures.