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FORIMMEDIATERELEASEThursday2February2012

AngusMcCrone

BloombergNewEnergyFinance

+442032164795

amccrone1@bloomberg.net

INDIASAWRECORD$10.3bnCLEANENERGYINVESTMENTIN2011InvestmentinIndiaoutpacestherestoftheworld,thankstotheimprovingcostcompetitivenessof

windandsolar

NewDelhi,LondonandNewYork,2February2012CleanenergyinvestmentsinIndiareached$10.3bnin2011,some52%higherthanthe$6.8bn invested in2010.Thiswasthehighestgrowthfigureofany

significant economy in the world. There is plenty of room for further expansion in 2011, Indiaaccountedfor4%ofglobalinvestmentincleanenergy.

Thelargegrowthwasdrivenbyasevenfoldincreaseinfundingforgridconnectedsolarprojects:from

$0.6bn in2010to$4.2bn in2011.Solaralmostreachedthesame levelof investmentsaswind,which

totalled$4.6bn.

AshishSethia,headofIndiaresearchatBloombergNewEnergyFinance,said:Therewasconcernatthe

beginning of last year that increasing lending rates might hit investment. Policy measures like the

JawaharlalNehruNationalSolarMission,andrenewableenergysincreasingcostcompetitiveness,have

madethisarecordyear.

AssetfinancingforutilityscaleprojectsremainsthemaintypeofcleanenergyinvestmentinIndia,with

$9.5bn in2011.This is significantas thehigher lending ratesobservedover thepastyearcouldhave

negatively impactedasset finance. Venturecapitalandprivateequity investmentalsomadeastrong

comebackwith$425m invested in2011,morethanfourtimesthe2010figure.Windandsolarproject

developers suchas MytrahEnergy India and Kiran EnergySolar Power succeeded in doing deals.The

onlymajortypeof investmentthat fell in2011wasequityraisingviathepublicmarkets.Only$201m

wasraisedcomparedtoarecord$735min2010whentheIndianstockmarketwasatitsalltimehigh.

Thewindsectoraddedarecord2,827MWofcapacity in2011comparedwith2,140MW in2010.This

keptIndiaatthethirdrankgloballyintermsofnew installations,behindChinaandtheUS.Bloomberg

New

Energy

Finance

estimates

that

2,500MW

to

3,200MW

of

wind

capacity

could

be

added

in

2012.

A

substantial increase ingridconnectedsolarcapacitywasalsoobserved,upfrom18MW in2010toan

estimated277MWbyendof2011.In2012,another500750MWofsolarprojectscouldbeadded.

Indias11thfiveyearplan,runningfromApril2007toMarch2012,targetedtheadditionof12.4GWof

gridconnected renewable energy. According to Bloomberg New Energy Finance, this target will be

exceeded,with14.2GWcapacityinstalledduringtheperiod.

Sethia commented: "The surge in installation of renewable energy shows that it is becoming cost

competitiveandscalable,atatimewhenIndia isstrugglingtomeet itstargetsforconventionalpower

capacity.Tocarrythismomentumforwardonrenewables,federalandstategovernmentswillhaveto

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ensure four things. First, that transmission lines are available for projects; second, that the grid can

handleanincreasedflowofrenewableenergy;third,thatrenewablepurchaseobligationsareenforced;

and,fourth,thatprojectdevelopersarepaidontimeforthepowertheyproduce."

MichaelLiebreich,chiefexecutiveofBloombergNewEnergyFinance,said:"India'srecordperformance

in 2011, and the momentum it is carrying into 2012, is one of the bright spots in the clean energy

firmament.WithsupportmechanismsfallingawayintheUS,theongoingfinancialcrisisinEurope,and

Chinaalreadygoing flatout, it isgratifying toseesomeof theworld'sothermajorpotentialmarketscomingalive. Indiaisfirmlyintheleadgroupandweareseeinginterestaroundtheworldinbeingpart

ofwhatisunfoldingthere."

ABOUT BLOOMBERG NEW ENERGY FINANCE

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