India plans to add 17,000 megawatts, or 17 gigawatts, of renewable-based power generation capacity between 2012-17, requiring an investment of up to 1.5 trillion rupees ($33.8 billion), as the country attempts to bridge its energy deficit and move to cleaner energy sources.
India currently has 20,000 MW of renewable energy capacity, constituting more than 11% of the country’s total power generation capacity.
A significant chunk of renewable energy investment in the next five-year economic plan is expected to come from the private sector.
The National Action Plan on Climate Change (NAPCC) announced in June 2008 by the Govt. of India proposes increasing the share of renewable energy in the total energy mix to 15% by 2020. In order to achieve this, NAPCC recommends pegging the minimum share of renewable energy in the national grid at 5%, starting from 2009-10, to be increased by 1% per annum in the following years so as to reach 15% by 2020. This requires a quantum jump in renewable energy generation across the country.
According to reports, Sean Sutton, President Asia-Pacific, Vestas said,Australia’s mandated renewable energy goal is driving growth in the country’s wind sector, Vestas’ Asia-Pacific president said, while South Korea and India represent other big regional opportunities for the turbine producer outside China.
“India is a fast-moving market and it’s a highly-competitive market with domestic and foreign suppliers. India needs energy. It’s a greenfield opportunity and a great opportunity to get the energy mix right,” Sutton added.