While the pace of renewable energy growth has slowed in India, positive outcomes in recent auctions suggest there remains plenty of appetite among domestic and foreign investors to build renewable infrastructure, according to a new IEEFA briefing note.
Policy-related headwinds and a collapse in electricity demand due to the COVID-19 crisis have disrupted India’s renewable energy capacity tendering and commissioning process. But despite these setbacks, renewables are proving resilient with investment capital available for new projects with favorable risk-return profiles, said author Kashish Shah, Research Analyst at the Institute for Energy Economics and Financial Analysis (IEEFA).
The note looked at the outcomes of seven renewable energy capacity and storage auctions held to-date in 2020. It found that together they attracted some USD 10-20 billion of investment commitments, despite the pandemic.