The renewable energy sector in India attracted investments worth $4.1 billion in 2008, up by 12% over the previous year, according to UNEP?s Global Trends in Sustainable Energy Investment in 2009. The global investment was $155 billion. But if India has to realise the full investment potential in renewables, the government must provide an enabling framework and remove policy, financial and technical bottlenecks to promote the sector, said a group of senior industry leaders at a roundtable meet in the Capital, last week.
In comparison, aggregate investment in developing countries went up by 27% to $36.6 billion. Brazil witnessed an increase of 76% to $10.8 billion, and China grew 18% to $15.6 billion over last year. India also ranks below the US, Germany and China in Ernst & Young?s Renewable Energy Country Attractiveness Indices. The Indicies rank countries on regulatory environment, fiscal support, unexploited resources and technological suitability.
Arun Seth, alternate director, Acme Telepower, said, ?Foreign investors are not coming into the country because they can?t handle the prevailing policy uncertainty in the country.? In fact, even Indian businesses prefer to export because it?s easier and more viable.
Agreeing with him, Hari Surapaneni, CEO & president of Solar Semiconductor, emphasised on the need to have an integrated policy. ?The removal of policy uncertainty is important so that companies and investors can think long term.? He called for an integrated policy as a confidence building measure.
Talking about his experiences, Sarvesh Kumar, deputy managing director, RRB Energy, said, ?We have been able to do so much with a little government support. Imagine what we can do with more.? RRB is a leading wind turbine manufacturer.
India generates 13,878 mw of grid-interactive power from renewable resources like wind, small hydro, solar, biogas co-generation and biomass, which accounts for 9% of total installed generation capacity. The 11th Five Year Plan targets 14,000 mw of grid interactive and distributed renewable power generation installed capacity by 2012. This envisions a 10% contribution of renewables in power generation capacity by 2012. In contrast, India?s gross renewable energy potential is 220 gw, which only demonstrates the untapped business opportunity.
Industry leaders expect India?s renewable energy sector to get a boost with the launch of eight missions as envisaged under the National Action Plan on Climate Change, which was unveiled last year by the Prime Minister. It should also lure more foreign investors. Said Craig O?Connor, director, Ex-IM Bank, ?Nothing succeeds like success. Once the renewable energy business gets going in India, it?ll attract a lot of foreign investors.?
Other participants in the discussion included Rabindra Satpathy, president, Reliance Industries; Pranav Nahar, MD, Evolution Markets India; Rajindra Valsalan, executive director of WinWinD Power Energy; and K Subramanya, CEO, Tata BP Solar.
Industry leaders were participating in a panel discussion on ?Financing renewable energy projects, current experience, challenges and roadmap for the future?, which was organised by Exhibitions India during the 3rd Renewable Energy Expo. Now the action will shift to the International Renewable Energy Conference, which will be held in New Delhi during October 27-29, 2010.