RENEWABLE ENERGY

How to Get Investment for Solar Energy in India

The Indian renewable energy sector is the 4^th most attractive renewable energy market in the world. As of October 2018, India ranked 5^th in installed renewable energy capacity. According to 2018 Climatescope report India ranked 2^nd among the emerging economies to lead to transition to clean energy.

With the increased support of government and improved economics, the sector has become attractive from investors perspective. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role. Foreign Direct Investment will play a crucial role in bringing in resources such as capital and advanced technology with easy norms and FDI Opportunities in Indian Renewable Energy. The free flow of capital will highly favour this sector and will lead to the exploration of its growth potential.

Up to 100% FDI in renewable energy sector in India and distribution projects subject to the provisions of The Electricity Act, 2003 is allowed under the automatic route

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5th largest installed capacity of renewable energy in the world
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4th largest installed capacity of wind and 5th largest of solar power in the world
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World’s largest solar plant (648 MW), commissioned within a record 8 months, and world’s largest solar park (2 GW) are now in India

As of February 2019, total renewable power installed capacity (excluding large hydro) in the country stood at 75.06 GW

As of October 2018, generation capacities for Waste to Energy, Biomass Gasifiers, and SPV systems stood at 175.28 MWeq, 163.37 MWeq and 767.51 MWeq, respectively

Wind power accounted for the highest at 46% (around 36 GW), followed by solar with a share of 36% (28 GW). The remaining market was captured by biomass at 12% (9 GW) and small hydro projects catering to 6% (5 GW)

With a potential capacity of 363 gigawatts (GW) and with policies focused on the renewable energy sector, Northern India is expected to become the hub for renewable energy in India

Government commitments
Increasing urbanization, rising incomes (both rural and urban), growing industrialization across the country along with private sector participationReduce the emissions intensity of GDP by 33% - 35% below the 2005 levels and increase share of non-fossil fuel in total capacity to ~40% by 2030
Proposed solar cities & parks
60 Solar Cities approved and $ 1.3 Bn allocated for setting up 50 Solar parks of 40GW by 2020
New areas of opportunities
National Wind-Solar Hybrid and Off-Shore Wind Energy Policy released

May 2019: Rooftop solar solutions provider ZunRoof has raised $1.2 mn from Godrej to fund expansion plans and strengthen product portfolio.
Apr 2019: Avaada Energy raised Rs.1,000 cr from ADB, Germany's DEG and Dutch FMO to finance its 2.4 GW renewable energy portfolio.
Apr 2019: British equity firm Actis' renewable energy platform Sprng Energy has acquired the 194 MW solar portfolio of Shapoorji Pallonji Infrastructure Capital Co.
Mar 2019: Eversource Capital, a Joint venture of Everstone and Lightsource plans to invest USD $1 bn in renewable energy in India through its Green Growth Equity Fund.
Dec 2018: Global infrastructure fund I Squared Capital is creating a new renewable assets platform that will acquire and develop utility-scale projects in India

$7.8 bn FDI inflows in the Non-conventional energy sector during April 2000 – March 2019
$3.7 bn FDI equity inflow (in USD) in the non-conventional energy sector during April 2014 to June 2018
Foreign Investors In Indian Power Sector are allowed 100% FDI under automatic route in projects of renewable power generation and distribution