Renewable Energy

Renewable energy sector has seen tumultuous time in the past and have swayed governments to quest renewable aspirations.

Given the plethora of IPO's in renewable energy and clean technology in recent years a broad exposure to the clean energy market is a good bet for green investors and is a resolute incitement to stimulate investment in this sector.

Renewable energy in India is a sector that is still undeveloped and India is to scale new heights in renewable energy sector by investing in solar, wind, biomass and geothermal plants.

In the five year plan from 2008-2012 Govt.of India proposed that the renewable energy market will reach an estimated US $19 billion and further investments of US $15 billion will be required in order to add the approximately 15,000 megawatts (MW) of renewable energy to the present installed capacity. The government has planned subsidy support of approximately US $1 billion and this amounts to adding renewable energy capacity at 1 Watt per US $1 with potential subsidy support of US $0,07/Watt.

The specific targets set for renewable energy is estimated to contribute 10% of total power generation capacity and have a 4-5% share in the electricity mix. This implies that growth in renewable energy will occur at a much faster pace than traditional power generation with renewables making up 20% of the 70,000 MW of total additional energy planned in the next five year plan.

To promote renewable energy technologies in the country the government has put in place some subsidies & fiscal incentives like Income tax breaks, Accelerated depreciation, Custom duty free import concessions and Capital interest subsidy.

India has declared to reduce carbon intensity of its economic output by 25% by the year 2020 and this would mean development in the renewable energy to meet targets and attract investments in clean technology from developed nations with latest technological knowhow and funding for these projects.