Growth in energy sector investments was the most pronounced in India compared to any other region in the world between 2015 and 2018. Data compiled by the International Energy Agency (IEA) showed that India’s energy sector investments expanded by 12 per cent in calendar 2018 alone. During 2015-2018, investments flowing into the country’s energy sector are estimated to have grown by seven per cent CAGR (compounded annual growth rate). Investments, including private foreign capital, poured into areas like coal supply, oil & gas, energy efficiency, renewable power, electricity networks, thermal power and renewable for transport or heat.
In terms of volumes of energy-centric investments, India ranked fourth – behind China, United States (US) and Europe but raced ahead of South East Asia and sub-Saharan Africa regions. India is the outlier since energy sector investments in rest of the geographies have either stagnated or decelerated.
A report by the US-based Institute for Energy Economics & Financial Analysis (IEEFA), notes that the tender outcomes at India’s solar and wind power auctions have offered constant evidence of global private capital chasing the country’s planned projects. Major international investors such as SoftBank, Brookfield (one of Canada’s leading alternative asset manager), leading Japanese conglomerate ORIX and Singapore based integrated energy player Sembcorp have loosened their purse strings to fuel India’s appetite for renewable growth.