FORIMMEDIATERELEASE Thursday2February2012 AngusMcCrone BloombergNewEnergyFinance +442032164795 amccrone1@bloomberg.

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INDIASAWRECORD$10.3bnCLEANENERGYINVESTMENTIN2011 InvestmentinIndiaoutpacestherestoftheworld,thankstotheimprovingcostcompetitivenessof windandsolar NewDelhi,LondonandNewYork,2February2012CleanenergyinvestmentsinIndiareached$10.3bn in2011,some52%higherthanthe$6.8bninvestedin2010.Thiswasthehighestgrowthfigureofany significant economy in the world. There is plenty of room for further expansion in 2011, India accountedfor4%ofglobalinvestmentincleanenergy. Thelargegrowthwasdrivenbyasevenfoldincreaseinfundingforgridconnectedsolarprojects:from $0.6bnin2010to$4.2bnin2011.Solaralmostreachedthesamelevelofinvestmentsaswind,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 in 2011. This is significant as the higher lending rates observed over the past year could have negatively impacted asset finance. Venture capital and private equity investment also made a strong comebackwith$425minvestedin2011,morethanfourtimesthe2010figure.Windandsolarproject developers such as Mytrah Energy India and Kiran Energy Solar Power succeeded in doing deals. The onlymajortypeofinvestmentthatfellin2011wasequityraisingviathepublicmarkets.Only$201m wasraisedcomparedtoarecord$735min2010whentheIndianstockmarketwasatitsalltimehigh. Thewindsectoraddedarecord2,827MWofcapacityin2011comparedwith2,140MWin2010.This keptIndiaatthethirdrankgloballyintermsofnewinstallations,behindChinaandtheUS.Bloomberg NewEnergyFinanceestimatesthat2,500MWto3,200MWofwindcapacitycouldbeaddedin2012.A substantialincreaseingridconnectedsolarcapacitywasalsoobserved,upfrom18MWin2010toan 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,atatimewhenIndiaisstrugglingtomeetitstargetsforconventionalpower capacity.Tocarrythismomentumforwardonrenewables,federalandstategovernmentswillhaveto

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 China already going flat out, it is gratifying to see some of the world's other major potential markets comingalive.Indiaisfirmlyintheleadgroupandweareseeinginterestaroundtheworldinbeingpart ofwhatisunfoldingthere."
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