India has set exceptionally ambitious renewable energy targets including 175 gigawatts (GW) of renewables by 2022, 275GW by 2027, and to achieve 40% of electric power installed capacity from non-fossil fuels by 2030. India seeks to tender another 80GW of renewables in total over the coming two years.
In recent years, the Ministry of New and Renewable Energy (MNRE) has laid the foundation for a clean energy expansion through robust policies and initiatives. India’s solar energy capacity has jumped a thousand-fold from a mere 17 MW in 2010, to more than 23 GW in 2018. Similarly, the wind market has more than doubled in recent years, from around 13 GW of installed power in 2010, to 34 GW by June 2018. These developments help move India closer to its ambitious clean energy goal of 175 GW installed capacity by 2022. However, in spite of several public financial institutions, private banks, and non-banking financial companies (NBFCs) providing capital, financing remains a key barrier in scaling India’s clean energy markets further.
As the deployment of renewable energy continues to expand around the world, driven by various inputs, such as capital allocation and investment, falling capital costs, competitive LCOE and various policy mechanisms, we are now moving towards a new era for renewable energy. ‘Renewables 2.0’ will have significant, wide-ranging consequences for all market players, as regulators reduce their support and power producers seek new revenue models. In this article, Duncan Ritchie, partner at Apricum – The Cleantech Advisory, will look at the key market developments for renewables, explode the myth of grid parity, highlight the need for flexibility and explain the importance of new financing solutions that are capable of meeting the new complexities brought about by ‘Renewables 2.0’.
India is currently the second largest market in the world for PV module demand. With China’s domestic demand frozen since the 31/5 notification, the country’s total module demand in 2018 will likely only achieve 32-34 GW. This will allow India, which may surpass 10 GW in annual demand, to reach 13% of global PV demand this year. As a result, the future of India’s trade war has become an influential factor in the global PV industry.
Finance in developing countries: Economics teaches that capital flows from where it is in surplus to where it is in demand. But that is not the case with renewable energy. The biggest pots of institutional capital in advanced economies are not shifting to developing ones. It is time to take a hard look and develop solutions that resolve this anomaly.
Actions taken today in the pursuit of environmentally sustainable and socially inclusive growth path in India stand to benefit more than 17 percent of the world’s population. A sustainable future for India carries an impact for the subcontinent and the entire world. At GGGI – the Global Green Growth Institute – our attention is captured […]
Budget 2018-19 has been watched with a lot of expectations and addressed three critical issues, agricultural distress being foremost, followed by employment opportunities for youth, and ways to kickstart manufacturing with large-scale private investments. ‘Saubhagya’ is one of the powerful tools that was at the top of the budget’s agenda, which Prime Minister Modi launched […]
India’s Director General of Safeguards (DGS) has proposed a provisional duty of 70% for a period of 200 days on solar cells and modules. It has issued its recommendations in a preliminary report, completed within just a month of submission of the petition by five Indian manufacturers including Mundra Solar, Indosolar, Jupiter Solar, Websol Energy and Helios […]
Since 2014, around 29 GW of utility scale solar tenders have been issued in India. Most of this capacity (81%, 23.5 GW) has been tendered by NTPC, SECI, DISCOMs and other public sector entities for project development by the private sector. But there is also a sizeable 19% (5.5 GW) tendered in the form of […]
The Indian Railways, being one of the largest railway networks in the world, operates around 12,000 trains per day. It is also one of the largest consumers of diesel in the country, with an annual consumption of 2.7 billion liters, which includes traction requirement as well as the use of coach lights, fans, AC, etc. […]
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