Renewable Energy Projects In India The Next Big

Thing
The Indian government is keyed up about achieving its target of 100 GW power by
2022 by starting sufficient renewable energy projects in India. However, the fact
remains that the existing infrastructure cant help it achieve this unless some
drastic measures are taken. This was revealed by an IndiaSpend analysis early this
year.

As a recent Economic Times report puts it, India needs to add a total renewable
energy of 130.76 GW which, divided over the next 6 years, means tripling the
existing average power generation capacity. And this is not just a political target. It
is also an essential measure in reducing global warming.

The worlds carbon dioxide (CO2) levels crossed the dangerous 400 parts per
million levels. And the 2016 Draft National Electricity Plan says that the power
sector makes for 50 per cent of Indias CO2 emissions; this is also because coal
the most used power sources -- is highly polluting.

The Paris Agreement in 2015 got 162 nations to agree to contribute substantially in
curbing the rise of temperature on the earth. India was part of it and committed that
it would, by 2030, arrange to source 40 per cent of its electricity from non-fossil
fuels.

India took its commitment seriously as, by 2016 October, it successfully raised the
renewable energy by 2 per cent, if government data is to be believed. The
ambitious target was backed by awareness campaigns on the significance of
renewable energy projects in India. Even companies which didnt come under
government subsidies played a part in educating consumers about the virtues of
renewable energy. More and more people started understanding that they now have
alternative sources for their household power needs and that they dont have to
totally depend on the grid.

Power sector experts, however, are apprehensive about the renewable energy target
India has set. The target might be more optimistic than realistic, they say, drawing
attention to a study by the United Nations Environment Program that claims this
target as 22 per cent of global renewable energy capacity in 2015. Besides, not
sufficient renewable energy projects were auctioned in India during the last quarter
of 2016. Another study by the US-based Institute for Energy, Economics and
Financial Analysis (IEEFA) says that the public and private investments made in
renewable energy in 2015 -- $10.2 billion -- was nearly just a quarter of what was
required for such a massive target.

According to London-based Bloomberg New Energy Finance, India needs to put in

at least $100 billion over the next six years in asset financing to achieve that
renewable energy target.

Meanwhile, a government Renewable Energy Invest Summit that draws renewable

energy financiers and developers was postponed indefinitely last year. While the
government needed more time to organize the event, the renewable energy
companies are nowhere near to the targets.

At the same time, the uncertainty about the purchasing of generated power by
publicly-owned companies, along with regulatory issues such as government
clearances and tedious land acquisitions, have made lenders and equity investors
skeptical about investing in renewable energy projects.

Suzlon Group chairman suggests that the Indian renewable industry must undergo
drastic changes to attract funds, for example, finance schemes such as debt for
longer terms for renewable energy projects.

Power is a crucial part of economic growth of a nation. And according to Union

Power Minister Piyush Goyal, Indias power sector has Rs 15 trillion investment
potential in the coming 5 years; which means immense opportunities in power
generation and distribution. Hopefully, the government makes the most of the
investment potential in raising the number of renewable energy projects in India
too.