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.