Investments in the Indian green energy sector could see an increase as high as 369 percent over the next decade, according to a report by Pew Charitable Trust.
The report explores the growth possibilities in three scenarios, namely under the current policy framework, in the event Copenhagen policies are implemented and with enhanced policies in the field of renewable energy.
Under the current legislative framework, India could have as much as 18 billion dollars worth of investments in the renewable energy sector, compared to a mere 2 billion dollars in 2009. The cumulative value of investments over the next decade could reach 118 billion dollars, meaning a 369 percent growth.
If India adheres to the Copenhagen Accord, implementation of the commitments therein could push green energy investments to even higher levels by 2020, to 20 billion dollars and cumulative amounts of 125 billion dollars, 416 percent higher.
The best case scenario is the event of India creating an improved legislative framework, which would allow a staggering growth of more than 760 percent. If that should happen, the country could see investments reach 33 billion dollars, and 169 billion dollars in cumulative investments.
At this point, according to the report, India has several plusses towards making such predictions a reality, such as its low wind farm tariffs, incentives in the area of taxation and accounting, various revenue streams and favorable laws for grid power plants, and a scheme of green energy certificates and targets. The country’s Solar Mission, aiming to install 20GW of photovoltaic capacity by 2022 is an indicator of the positive trend in the Indian renewable energy sector.
The country also has some weaknesses. Among these the excessive bureaucratic and legislative difficulties, a weak infrastructure and low grid connectivity can be counted. India could also work on developing the offshore wind energy investments, as of the country’s installed capacity of over 12,000 MW, none are in offshore farms. Furthermore, India could improve the incentives for the development and implementation of technologies for capturing and storing carbon.