WEF report on Rise of the Indian renewable energy market

The World Economic Forum has also carried out an analysis of India's renewable energy

market, and observed that a favorable policy regime and an aim to reduce dependency on thermal power

is pushing the growth of renewables in the country. WEF notes that:
8In an effort to modernize its electricity grid and reduce dependency on coal-fired power plants,

India has instituted a number of policies that promote renewable energy.
8Some of these policies include the introduction of renewable purchase obligations (solar and

non-solar) for distribution utilities, and scaling them up over time; trading renewable energy

certificates on power exchanges; and setting an ambitious target to develop 20,000 megawatts (MW) of

new solar generating capacity by 2022, over and above existing incentives for wind power.
8In 2009, renewables share of India’s electricity generation reached 14%, exceeding the 10% target

for 2012. Most of India’s new, grid-connected renewable power capacity came from wind in 2010.

However, biomass, small hydropower and solar capacity also contributed to gains in India’s renewable

energy portfolio. India added nearly 2.3 GW of wind capacity in 2010, making it the third largest

market in the world after China and the United States. India’s installed wind capacity of 13 GW

ranks fifth in the world.
8The report further notes that the Indian economy is reaping the benefits of this trend as Indian

manufacturers of wind products expand. Recent investments in India’s wind sector supply chain

include new turbine assembly plants, platforms, and local component manufacturing for towers and

blades. These manufacturing investments seek to capitalize on India’s currently favourable

regulatory regime for renewable energy, such as feed-in tariffs (FIT), state and renewable portfolio

obligations and renewable energy certificate trading.
8India is also turning to solar power to capitalize on its clear, sunny climate. India’s current

solar capacity stands at a mere 140 MW, but officials aim to reach 20,000 MW installed solar

capacity by 2020. As a result of increased competitiveness and favourable renewable energy policies,

India’s domestic solar manufacturing industry saw new growth in 2010. Although solar usage in India

still trails behind Europe, India is benefitting from a drop in the price of solar panels.
(Click on our 'Reports' section for more information)

WEF report on 'Energy for economic growth'-III: Download

March 22: The WEF-IHS CERA report seeks to provide a framework for understanding the larger economic

role of the energy industry at a time when issues of employment and investment are critical in a

troubled global economy. The report, which is carried here by the website, covers the following

topic areas:
8A description of the overall role that energy can play in the economy of a nation and how this

sector may serve as an engine of economic growth.
8A discussion on how countries endowed with traditional energy resources can maximize the benefit

of resource extraction for their economies.
8Comparison and description of the job creation potential of different types of energy extraction

and generation based on a case study of the United States.
8An examination into how countries are developing non-traditional energy industries and the

economic impact of such efforts.