In February 2015, the Indian government announced its plans to almost quadruple its renewable power capacity to 175 GW by 2022 as part of the plan to supply electricity to every household in the country. This includes 60 GW from wind energy. Further, India made a commitment at COP21 to raise the share of non-fossil-fuel power capacity in the country’s power mix to 40% by 2030.
Consequently, these plans and targets make the Indian market a unique fast moving and growing market where competitive companies can have great business opportunities. But, they also come with a complex and unstable legal framework where manufacturers find many obstacles on the way.
Market developments
In 2016, India set a national record with 3,612 MW of new installations, bringing the country’s total to 28,700 MW and consolidating its 4th position in the cumulative global rankings, according to the Ministry of New and Renewable Energy (MNRE) of India.
India was among the top 10 countries in terms of renewable energy investment, according to UNEP & Bloomberg New Energy Finance. Also, India’s renewable energy sector held its position at the third spot for the second year in a row in the Renewable Energy Country Attractiveness Index (RECAI) released by EY globally, with China at second and the US on top. According to EY, this is primarily due to the strong focus of the Indian Government on renewable energy coupled with the actual timely implementation of renewable energy projects. The report also suggests that renewable energy is increasingly proving its mettle against conventional energy generation.
