According to reports, India has emerged as the fourth most attractive place globally in terms of its market potential for renewable energy after China, the US and Germany, a Ernst & Young report says.
According to the latest study by Ernst & Young-UBM India, India was ranked fourth on the renewable attractiveness index, while it was placed in the second position on the solar index and third on the wind index.
Others in the top 10 include, the UK (5th), followed by France and Italy in the sixth place (6th), Canada (8th), Japan (9th) and Brazil (10th).
India has been consistently ranked among the top five countries globally in terms of its market potential for renewable energy, as per the report.
With power generation from renewable sources on the rise in India, share of renewable energy in country’s total energy mix rose from 7.8 per cent in FY08 to 12.1 per cent in FY12.
“India’s growing rate of urbanisation, rising per capita energy consumption and widening access to energy, are expected to significantly increase its total demand for energy,” Ernst & Young Partner & National Leader – Cleantech Sanjay Chakrabarti said and added renewable energy is expected to play a vital role not only from an environment angle but also from energy security perspective.
India had around 26 GW of installed renewable energy capacity as on August 31, 2012 and plans to more than triple its renewable energy capacity in the next 10 years, driven mainly by wind and solar.
The report further added that investments in clean energy in India have increased by 54 per cent year-on-year (y-o-y), representing the highest growth rate across any significant global economy, to reach USD 10.2 billion in 2011. The wind energy sector attracted investments amounting to USD 4.6 billion, while the solar energy sector witnessed investments of USD 4.2 billion.
India has abundant untapped renewable energy resources, provides ample opportunities for the establishment of land-based renewable energy generation and offshore wind farms. India’s primary energy consumption between 2006 and 2010 increased at a CAGR of 8.3 per cent, from 381.4 million tonnes of oil equivalent (MTOE) to 524.2 MTOE.