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An Overview on Foreign Investments in Indian Renewable Energy Market

[/vc_column_text][vc_column_text]By 2030, it is anticipated that about 40% of India’s power capacity will be produced through renewable sources. The country’s Ministry of New and Renewable Energy has noted that in the last seven and a half years, India’s solar capacity has escalated from 2.6 GW to over 46 GW. However, the target set to achieve renewable energy capacity this year is 175 GW, paving the way for higher foreign investments in this sector.[/vc_column_text][vc_single_image image=”3685″ img_size=”full” alignment=”center”][vc_column_text]In the financial year 2021-2022, FDI (Foreign Direct Investment) in Indian Renewable Energy Market stood at USD 1.6 billion. However, the best way an FDI can enter the renewable power sector, understand the Indian market and keep reaching heights is to seek the assistance of a reliable renewable energy consulting company in India. [/vc_column_text][vc_column_text]

Why Emphasising the Importance of the Renewable Power Sector is Crucial?

[/vc_column_text][vc_column_text]There are several environmental and economic benefits of setting renewable power sector in the country.

Emphasising on establishing a renewable power sector will help bring down pollution notably as these plants will produce renewable energy, curbing greenhouse gas production. Moreover, as these sectors generate a diversified energy supply, it will reduce the country’s dependence on imported fuels.

These sectors also lead to economic development and strengthening employment in manufacturing and installation, etc.

On-site power generation enables local governments to access renewable energy directly, hedging them against financial risks and enhancing a region’s power quality and supply stability. Furthermore, using renewables instead of coal will help India save 540M USD.[/vc_column_text][vc_column_text]

Sustainable Development of India’s Renewable Energy Industry in Recent Times

[/vc_column_text][vc_column_text]The non-conventional energy industry has seen an FDI inflow of USD 11.62 billion from the financial year 2020 to 2022. India’s installed renewable energy capacity is at 158.12 GW as of April 2022, about 39.43% of the entire installed power capacity. Moreover, the energy capacity addition is at 8.2 GW for the first half of the financial year 2022, which was at 3.4 GW in the initial month of FY 2021. However, the country aims to achieve about 450 GW of the installed renewable power potential.[/vc_column_text][vc_single_image image=”3686″ img_size=”full” alignment=”center”][vc_column_text]Investors like Brookfield Asset Management Inc., based in Canada, are aspiring to purchase assets in the power and renewable energy sectors in India and would add nearly USD 2 billion to the asset base.

CLP India, one of the significant foreign investors, announced the issuance of corporate Green Bonds. CLP Wind Farms is willing to raise an amount of 73M USD in these renewable power sectors.[/vc_column_text][vc_column_text]

Foreign Investment in the Indian Renewable Power Sector – Position of the Indian Government

[/vc_column_text][vc_column_text]The Government of India is looking forward to creating power sectors that is cost-effective and sustainable and hence have implemented several schemes to boost the production of renewable energy.

• The Government has allocated an amount of 2B USD for the PLI scheme in the union budget 2022-2023 to enhance the production of high-efficiency solar modules. Moreover, the amount allocated for the SECI (Solar Energy Corporation of India), which stirs the development of an entirely renewable energy sector, stands at 10B USD.
• The Mission Innovation Clean Tech Exchange is launched as a global initiative with the aim to expedite clean energy innovation.
• In Feb 2022, Joint Hydro Development Committee was formed between India and Nepal to expand and explore the chances of feasible hydropower projects.
• Even the Indian railway is taking measures to maximize the use of clean fuel and bring down the emission level by 33% by 2030.
• The Indian Government has set new rules to follow while purchasing and consuming green energy. These latest rules prompt large-scale energy consumers to use renewable energy sources to conduct their regular operations, establishing more renewable power sectors in India. This will attract foreign investments to set up their ventures in the country.

[/vc_column_text][vc_single_image image=”3687″ img_size=”full” alignment=”center”][vc_column_text]In this regard, returning to trustworthy investment consulting firms in India will help foreign investors overcome hindrances and successfully establish their ventures.[/vc_column_text][vc_column_text]

India’s Position in the Worldwide Competitive Market of Renewable Energy

[/vc_column_text][vc_column_text]The Indian renewable energy industry ranks fourth globally in renewable power installed capacity. India also holds the fifth position in solar power capacity. In October 2021, India held its third rank on the EY Renewable Energy Country Attractive index 2021. Moreover, in the coming year, as robust batteries will store electricity, it is anticipated that India will scale the ladder by 2024. As a result, around 49% of total electricity will be produced by renewable energy, leading to a 66% reduction in solar energy costs.

The Central Electricity Authority (CEA) has evaluated that India’s power consumption will escalate and reach 817 GW by 2030. The CEA has also estimated that renewable energy generation would reach 44% from 18% and that thermal energy will reduce to 52% from 78%.[/vc_column_text][vc_column_text]

Role of Consulting Firms in Foreign Investment in the Renewable Energy Sector

[/vc_column_text][vc_column_text]India is looking forward to generating alternative energy sources with the aim of adhering to the growing power demand in India. In this regard, it needs an investment of USD 200 billion in order to meet its target. This will help create attractive opportunities and pave the way for foreign companies to settle their plant in the country. Moreover, the government’s robust support and improved economics have made these sectors more lucrative from an investor’s perspective.

The most effective way companies can boost trade and capture new market opportunities is by falling back on one of the top investment consulting companies like Tecnova. Such firms offer all-inclusive support to European and foreign investors with market research, complete regulatory compliance, partner search, manufacturing plant set-up, etc.[/vc_column_text][vc_column_text]Reference

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