India currently relies heavily on coal for its mass consumption of energy. Even though the country’s renewable energy capacity represents 11% of the global installed power capacity, for India it is not enough. The ministry for New and Renewable Energy has recently announced an investment of $37 billion in green energy generation, which should add up another 17,000 MW in the next 6 years.
This means a change in plans for the Indian government, which initially had a lower target: the installation of only 74.4 GW of renewable energy by 2022. These were supposed to trigger a decrease in carbon emissions by a quarter in the next 10 years, comparing to 2005 reports. With this investment, the government actually decided to raise its expectations four times the initial numbers.
The way in which the government prepares to do this is, of course, the traditional method: offering subsidies and incentives. But the government doesn’t hold its breath for great results coming to it this way. The focus shifts to a much more sustainable strategy: attracting foreign investors that are willing to put their money where their mouth is. Namely becoming involved in promising technologies that should return their investment double.
If investors take their chance in renewable industries, then the Indian government will, for example, absolve them from the payment of specific taxes and make possible loans at low interest rates.
Another source of profit for investors would be to sell the environmental attributes concerning power produced from alternative energy sources. So the government is sending out a clear message for any foreign investors interested in the project and is definitely willing to smooth their path.
In the meantime, India is a key player in the wind industry, having installed over 14,000 MW so far on its land. The wind energy company Suzlon ranks as the third provider of the sort and accounts for 10% of the global market.
The solar energy industry is not neglected either: the Jawaharlal Nehru National Solar Mission supervises the national solar power development and plans to match the energy provided by coal by 2030.
Other renewable sources that await their turn are biomass and small hydro. As illustrated above, India is clearly laying out its cards in the green energy industry and it is on its way to becoming a top leader in the field.