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India’s renewable energy investments jump 10 per cent to $5.9 billion in first half 2019

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Energy World- Economic Times
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India invested $5.9 billion in setting up renewable energy projects in the first half of the current calendar year, a 10 per cent jump compared to the investments in the same period of 2018, as the Modi government continued its drive toward its ambitious target for 175 Gigawatt of renewable energy by 2022, according to research firm Bloomberg New Energy Finance (BNEF). The stellar jump in investments in solar and wind energy projects in India came even as the global renewable energy investments dropped 14 per cent to $117 billion, led by a 39 per cent slump in China at $28.8 billion, a 6 per cent dip in US at $23.6 billion and a 4 per cent dip in renewable energy investments in Europe at $22.2 billion during the period. “The slowdown in investment in China is real, but the figures for first-half 2019 probably overstate its severity. We expect a nationwide solar auction happening now to lead to a rush of new PV project financings. We could also see several big deals in offshore wind in the second half,” said Justin Wu, head of Asia-Pacific for BNEF. The other highlight of global clean energy investment in the first half of 2019 was the financing of multibillion-dollar projects in two relatively new markets – a solar thermal and photovoltaic complex in Dubai, at 950 MW and $4.2 billion, and two offshore wind arrays in the sea off Taiwan, at 640MW and 900 MW and an estimated combined cost of $5.7 billion. The Dubai deal in late March, for the Mohammed bin Rashid Al Maktoum IV project, is the biggest financing ever seen in the solar sector. It involves $2.6 billion of debt from 10 Chinese, Gulf and Western banks, plus $1.6 billion of equity from Dubai Electricity and Water Authority, Saudi-based developer ACWA Power and equity partner Silk Road Fund of China. Breaking global clean energy investment down by type of transaction, asset finance of utility-scale generation projects such as wind farms and solar parks was down 24 per cent at $85.6 billion, due in large part to the China factor. Financing of small-scale solar systems of less than 1 MW was up 32 per cent at $23.7 billion in the first half of this year.