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India to become renewable energy powerhouse

India to become renewable energy powerhouse

Feb 23, 2011 -

The market analyst’s report Renewable Energy in India: Policy, Investment, Capacity, Growth and Outlook, shows that India could become an increasingly important renewable energy market.

Akhil Sivanandan, Datamonitor Analyst and author of the report, says: “There are several factors that mean India has great potential to become far more reliant on green power.

“There is currently unprecedented power demand in the country due to its continued breakneck economic growth, urbanisation and rapidly improving standards of living. This is of great concern to the Government and developing energy infrastructure is recognised as a priority.

“Over the next decade India plans to diversify its energy mix, adding significant renewable capacity, which will help it to plug the demand gap and provide power to all residents. This need for renewable energy, combined with international pressure, has led to increasingly ambitious renewable energy targets.

“With strong support mechanisms being put in place, India could become a global renewable powerhouse. However, making that happen will involve overcoming significant hurdles, from providing enough financing incentives to cutting down the red tape which is prevalent in the power industry. Overcoming these problems will be the key to India’s green transformation.”

India is the fifth largest producer and consumer of electricity in the world, with an estimated 934.2 TWh of power generated and an installed capacity of 156.8 GW in 2010.

Per capita consumption is expected to more than triple from 704 kWh, as estimated in 2009, to reach 2643 kWh by 2032, fuelled by an estimated 7% yearly GDP growth, Datamonitor says. Currently 40% of the country’s 1.2 billion people are said to be without access to electricity.

Sivanandan adds: “Most of the electricity in India is generated through conventional thermal sources, which accounted for 64 % of power generated in 2010. However to plug the demand gap, renewable energy will need to play a much bigger role, which the government is addressing with plans to raise generation capacity.

“Except for hydropower, which is largely in the hands of the Government, most other renewable energy sectors are at an early stage. But to promote renewable power generation and spur private investment the Government has put forward a slew of supportive legislation, ambitious targets and incentives. The great potential is there, it remains to be seen if India can achieve it.”



Updated: 2016/06/30

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