Net Zero Summit

Avendus Capital Report Highlights $25 Billion Investment Opportunity in India’s Clean Energy Industry

Avendus Capital, India’s Investment Banking franchise, has released a new research report on energy transition and clean energy investment in India.

The report, created in partnership with UK-based independent research firm Clean Energy Pipeline, reveals that India’s energy transition landscape is set to undergo a significant change this decade.

The report also highlights that the clean energy sector in India provides an annual investment opportunity of approximately USD 25 billion.

As part of the study, Avendus commissioned a survey that garnered over 2,000 responses from global investors, indicating high economic growth and a stable commitment to decarbonization as the key factors that are drawing the attention of major organizations and investors worldwide.

The report also includes interviews with key companies and investors who participated in the survey, including SUSI Partners, Actis, ABB, and Ikigai Capital.

Prateek Jhawar, Managing Director and Head of Infrastructure & Real Assets Investment Banking at Avendus Capital, stated that only around 20% of final energy consumed is in electrified form, and investments in decarbonization of the balance 80% share will require and witness participation from a multitude of players in addition to renewable power producers and its current ecosystem. He also noted that investment interest in the Indian energy transition sector has grown despite the global economic slowdown in 2022. Jhawar believes that India will continue to be at the forefront of global decarbonisation efforts, with green hydrogen becoming the next big wave in energy transition globally and green ammonia providing viable end-use in the short term.

Akhil Dokania, Director of Infrastructure and Real Assets Investment Banking at Avendus Capital, said that green hydrogen, energy storage, EV charging, carbon capture and utilisation, and energy efficiency are the segments that will create a mark for themselves over this decade. Dokania added that existing companies will expand their offerings and multiple new players/business models will contribute towards energy transition. He also noted that Indian companies are coming up with service-oriented solutions for energy delivery and management, which creates a significant value creation opportunity for early investors in the emerging energy transition segments.