India's transformation into a cleantech powerhouse moved up a gear in 2011 when it racked up investments of $10.3bn in the sector, a growth rate of 52 per cent year on year that dwarfed the rest of the world's significant economies.

Solar investments led the growth with a seven-fold increase in funding, from $0.6bn in 2010 to $4.2bn in 2011, just below the $4.6bn invested in wind during the year, according to figures released yesterday by analysts Bloomberg New Energy Finance (BNEF).

A record 2,827MW of wind energy capacity was added in 2011, which kept India third behind China and the US in terms of new installations. BNEF said a further 2,500MW to 3,200MW could be added in 2012.

Grid-connected solar also saw a substantial increase, up from 18MW in 2010 to an estimated 277MW by the end of 2011, while another 500MW to 750MW of solar projects could be added in the coming year.

Asset financing for utility-scale projects remains the main type of clean energy investment in India, with $9.5bn in 2011, BNEF said. Venture capital and private equity investment made a strong comeback with $425m invested in 2011, more than four times the 2010 figure, but equity raising via the public markets was only $201m compared with a record $735m in 2010, when the Indian stock market was at its all-time high.

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