Costs for fossil fuels are rising, making them riskier investments – another reason India is turning up the volume on renewable energy investments.
Yesterday, we reported that investment in India’s renewable energy is out-pacing the rest of the world, thanks to the improving cost-competitiveness of wind and solar.
Today, India’s largest state-owned lender, Power Finance Corp, announced it will double financing of renewable energy projects this year, reports Bloomberg.
It plans to increase lending for solar and wind projects to 4% of all financing to $305 million, up from 1.2% last year.
"Given that fossil fuel costs have gone up, investments in wind and solar are surging," Chairman Satnam Singh told Bloomberg. "We’re not afraid to go at renewable in a big way where lending happens much faster, within six months."
Over the past two years, prices for imported coal have risen 28%.
In July, Power Finance Corp. created subsidiary Power Finance Green Energy to govern investments in the sector.
"Purely from an investment perspective, a clean energy project in India is a lot more attractive than a coal-based project, right now," Praveen Kadle, managing director for Tata Capital told Bloomberg.
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I didn’t realize the consequence of the failed Bush oil war until now,
besides the over 4,500 innocent soldiers lives as failed republican subsidies.