India has become the world’s third most attractive market for renewable energy

India has become the world’s third most attractive market for renewable energy investment, displacing Germany in the top three, according to Ernst & Young. The UK has also pushed ahead of Germany to fourth place, following the publication of the government’s energy review this month.

“India’s rise to third overall … has been precipitated by excellent national and regional government support for both foreign and local investment in renewable technologies,” the consultancy says in its latest quarterly Renewable Energy Country Attractiveness Index. “Consequently, rapid growth is expected to continue in this market.”

The report notes that installed renewables capacity in India – currently standing at 8GW – is now expected to double every five years, and is forecast to reach 20GW by 2012, twice the government’s target. Full article in Environmental Finance Magazine.

Ashok Toshniwal has provided some valuable comments on the Renewables Market in India (below):
The Hector Molina Sugar Cane Biomass Project provides an interesting example of how project finance risks can be reduced to allow early penetration into renewables markets.

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2 Responses to India has become the world’s third most attractive market for renewable energy

  1. Ashok Toshniwal says:

    Dear Rachael

    Greetings from the silicon city of India, Bangalore.
    While it is good to know that the installed capacity is going to go up to 20 GW by 2012. What is more important is the actual energy generation. Lot of activity is taking place in the sugar industry where bagasse is being used as a fuel. Few Individual companies, at various site locations, are now cumulatively touching 100 Mw of installed capacity. Capacity addition will continue for few more years. Steam turbine manufacturers are doing extremely good.
    Similar situation is with the wind generation.
    Biomass gasification is a very very promising area particularly for thermal application where fossil fuel can be replaced by cheaper and more environmentally friendly biomass. Biomass is being used for power generation via steam route but not much via gasification Compared to this potential, not much of activity in this area is happening. Even power generation can be done and few plants are already operational.

    Small wind is another area which can add substantial capacity.

    Thanks and regards

    Ashok Toshniwal, Bangalore, India.

  2. Dear Ashok Toshniwal

    Thank you for your valuable insights, the sugar industry is indeed an interesting area with plenty of opportunities for project finance. I hope you find the Cuban bagasse project (see link in article) interesting reading, many of the recommended risk managament techniques will be expected to be equally applicable in other ‘risky’ renewables markets.

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