Wind and solar projects accounted for 74% of the INR 328.97 billion (USD 4.3bn/EUR 3.8bn) in project finance secured by coal and renewables in India in 2020, a new report shows.

Climate Trends and the Centre for Financial Accountability’s (CFA) analysis of the project finance landscape shows renewables got more money than coal for the third year in a row. In 2017, coal got INR 607.67 billion, almost three times more than renewables, but the tables turned in 2018 mainly because coal financing dropped. Details are available below.

Project finance in INR billion 2017 2018 2019 2020
Renewables 229.13 244.42 229.71 243.77
– of which wind 73.77 98.64 69.17 46.34
– of which solar 155.36 145.78 160.54 197.43
Coal 607.67 60.81 11 85.2

In 2020, over 88% of the INR 328.97 billion in financing was primary financing, leaving just 12% for refinancing deals.

The analysis shows that majority state-owned banks were the “lenders of last resort” for coal. Of the total coal financing last year, at INR 85.2 billion, 100% came from the Power Finance Corporation (PFC) and the Rural Electrification Corporation (REC). In contrast, 56% or INR 137.31 billion of loans for renewables came from commercial banks. Still, the State Bank of India was the single largest lender, extending INR 25.66 billion for green projects.

Rajasthan and Gujarat got INR 186.71 billion, or 77% of all renewable energy loans, while a coal-fired plant in Bihar secured all the money for coal.

Picture courtesy: Flickr

The original article published in Renewables Now can be accessed here.

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