India’s Renewable sector offers US$ 25 billion investment opportunity

India’s renewable sector is set to observe a drastic change over this decade since multiple investments in energy transition segment are expected, stated a joint report released by Avendus Capital and Clean Energy Pipeline.

Image Credit: Shutterstock

India’s largest Investment Banking franchise Avendus Capital released a joint report in collaboration with Clean Energy Pipeline – ‘Energy transition and clean energy investment in India’. According to the study, the Indian energy transition landscape is expected to experience a dramatic change with investments in several emerging businesses that are working towards the decarbonization of the economy.

The renewable sector alone is expected to offer a US$ 25 billion annual investment opportunity for investors.

Akhil Dokania, director, Infrastructure and Real Assets Investment Banking, Avendus Capital said, “We believe green hydrogen, energy storage, EV charging, carbon capture & utilization and energy efficiency are the segments that will create a mark for themselves over this decade”.

Avendus Capital and Clean Energy Pipeline conducted a survey in 2022 to determine the interest of global clean energy stakeholders in India’s clean energy industry. The survey garnered a total of 2,324 responses which showed an impressive degree of confidence in the country’s renewable energy sector.

Over 34% of the respondents expressed interest in India, while 16% have considered entering or re-entering India’s clean energy market. Almost 18% of international respondents already operate in the country. Geographically, 59% of interested respondents are from Europe and 29% are from North America. Remaining 12% belong to Asia Pacific, Africa and the Middle East and Latin and Central America.

The sectors that represented the highest share of respondents include Banking & Finance (26%), Energy (21%), Commercial and Professional Services (19%) and Construction/Engineering and Equipment Suppliers (15%).