October 16 (SeeNews) - The Intended Nationally Determined Contribution (INDC) released by India centres around three main quantifiable targets to be achieved by 2030.
One is reducing emission intensity of GDP by 33-35% from 2005 levels, mainly through arriving at a 40% share of renewables in the electricity generation mix and creating additional carbon sinks of 2.5 to 3 billion tonnes of CO2 equivalent through additional forest and tree cover.
We will concentrate on the business opportunities that the renewable energy target opens.
India currently has an installed power generation capacity of around 275 GW, with renewables contributing 36 GW or around 13% of the installed base.
The country has officially committed to boost its renewable energy capacity to 175 GW by 2022, including 100 GW of solar and 60 GW of wind. As per the announced INDC, India would be chasing a non-fossil target of about 320 GW by 2030. Scaling-up of such a magnitude could very well drive renewables technology, innovation, and cost reduction not just in India, but worldwide.
Non-government market projections are also confirming India's future love story with renewable energy.
Research firm Bloomberg New Energy Finance has estimated that 2015 will be the second time ever that clean energy investments in India will
pass USD 10 billion (EUR 8.8 billion) after the USD 13.1 billion was deployed in 2011. According to the firm India has one of the lowest levelised costs of renewable energy generation in the world.
A recent report from research and consulting firm GlobalData says India’s installed non-hydro renewable energy capacity is expected to more than triple to an estimated 125.9 GW by 2025 from 33.1 GW in 2014.
“India has significant solar power potential, due to its geographical location near the equator, and the country has outlined clear plans for future energy production from this source,” said Chiradeep Chatterjee, GlobalData’s senior analyst covering power.
There is just one glitch in these bold plans.
So far, India has largely financed its renewables efforts using domestic resources. To attain the ambitious goals it has set, the country will need to improve access to low-cost capital and technology. As the INDC document says India will need “help of transfer of technology and low-cost international finance including from Green Climate Fund” .