Investments in Indian solar sector were shrinking in 2020 by 66 percen
Post date: 01/03/2021 - 08:55
Investments in the Indian solar sector declined by 66 percent and stood at approximately $2.8 billion in the calendar year 2020, compared to $8.2 billion in 2019, according to Mercom's Q4 2020 and Annual India Solar Market Update. Out of the total investments, utility-scale solar projects attracted investments of nearly $1.19 billion, while rooftop projects saw investments of $356 million in 2020.
The solar supply chain also suffered from the decline in investment due to the Corona pandemic. For example, there was little financing in the area of cell and module production. In particular, German DEG (Deutsche Investitions- und Entwicklungsgesellschaft), a development finance institution and a subsidiary of state-owned KfW Group, pledged $10 million in funding to Indian solar energy company Avaada Energy Private Limited. Moreover, Maharashtra-based investment firm Convergent Finance LLP had invested $27.2 million in solar glassmaker Borosil Renewables, and independent power producer Renew Power raised around $325 million through overseas green bonds. Furthermore, Ayana Renewable Power made a significant capital raising of $390 million in 2020 through its latest funding round, says the consultancy.