The visit of US President Barack Obama is expected to see some more financing deals being signed between the two countries for the renewable energy sector.
Growing interest in India’s new and renewable energy sector could see investments of over $10 billion this year, the highest in four years, according to analysis of research firm Bloomberg New Energy Finance.
Positive early signs “Interest in India from domestic and foreign investors has grown in the last six months. Early signs of policy interventions are positive,” Ashish Sethia, Head of South and Southeast Asia at Bloomberg New Energy Finance said in statement.
Already Germany’s KfW has committed to provide a loan of €1 billion to Power Grid Corporation for strengthening India’s transmission network to carry more renewable energy.
Investments in new and renewable energy in India jumped to $7.9 billion in 2014, a 13 per cent growth over 2013 indicating that the new government’s initiatives in the sector is gaining traction amongst investors.
The growth in 2014 was a turnaround after investments had dropped 10 per cent year-on-year in 2013.
According to Bloomberg New Energy Finance’s analysis, India has one of the lowest levlised costs of renewable energy generation in the world. The research firm expects 2,500 MW of new solar capacity to come up in 2015 along with 2,800 MW of wind power installations.
State governments’ role “The planned reforms to the Electricity Act, 2003 are expected to strengthen renewables in India further but the federal establishment also needs to align with state Governments. That is where the projects are installed, power generated and consumed,” Sethia added.