Lending to renewable energy (RE) projects in India surged by 63% in 2023, reaching Rs 302.55 billion, compared to the previous year, according to a report by the Centre for Financial Accountability.
Solar energy accounted for 49% of the funding, with Rs 148.14 billion directed toward solar projects. Hybrid projects saw a 31% year-on-year increase, attracting Rs 137.73 billion.
Only one loan was made for wind energy projects, highlighting a shift towards solar and hybrid initiatives.
The total RE project capacity funded by loans was approximately 8.8 GW, including 4.75 GW of solar.
Despite this rise, there was no project finance lending to coal power projects for the third consecutive year.
However, corporate finance lending to coal power companies saw significant investments, particularly from US-based Jefferies Financial Group, which provided over $2 billion in underwriting services to Adani and JSW Energy in 2023. Indian banks, such as the State Bank of India, also provided $752 million to coal expansion plans.
The report highlights growing investor confidence in renewable projects while noting a significant paradox in Western private sector lending for coal power expansion in India.