Nearly $100 billion more required for Modi's clean energy drive
Prime Minister Narendra Modi's ambitious clean energy drive requires another $100 billion more to help finance the targets, according to reports. After scripting massive investments in the country's wind and solar energy sectors, there is a larger requirement for investments to continue the momentum. Another $100 billion would translate to nearly 5% of India's annual GDP.
What is clean energy?
Clean energy is that which is generated from natural resources such as sunlight, wind, water or geothermal heat. The power generated from these forms do not contribute to pollution, unlike oil, coal and gas.
India joins the clean energy bandwagon
Last year, Prime Minister Narendra Modi announced initiatives that would help push the country's drive to achieve cleaner energy and address issues regarding climate change. The government placed clean energy targets of 175 gigawatts, with 100 gigawatts for solar power, 60 gigawatts for wind energy, and another 15 gigawatts for other renewables. These targets were to be achieved by 2022.
How much is the clean energy drive worth?
Market analysts estimate that over the next six years, India would require nearly $300 billion for renewables, with around $100 billion solely required for solar power alone. The clean energy drive has seen massive global investments of over $100 billion into India's renewable energy sector.
India's current position in the clean energy market
India has around 42.6 gigawatts of clean energy capacity currently, contributing to around 14% of India's total power capacity. Three years ago, its contribution was around 12.5% Reports stated that around $10.5 billion has already been invested in renewable energy for the financial year ending 31 March. This has helped the country become the third largest power market across the globe.
Financing for the clean energy program
State Bank of India, Axis Bank, Yes Bank, and Punjab National Bank have helped finance the clean energy drive. Apart from banks, non-banking corporations such as Tata Cleantech Capital and L&T Finance, along with institutions such as the World Bank, Indian Renewable Energy Development Agency have pitched in financially. Analysts stated that funds from public markets must also be raised to meet targets.
