The last few years have seen India become a leading light in the use of renewable energy. Renewable energy now accounts for around 12% of total electricity production in India, with coal accounting for 53%, gas at 9% and hydropower accounting for 20%. Nuclear energy currently only contributes 1% to electricity production in India.
The Indian government has given multiple benefits to renewable energy projects in the country, over other project such as oil and gas, which have lead to increased interest in development. Benefits include the availability of loans, financial support for R&D projects, income tax holidays and exercise duty exemption. The government is also looking to increase competition within the sector by adopting the latest technologies in the industry.
An ambitious target has been set by the Indian government, with a figure of 53,000 MW of renewable energy generation expected to be reached by 2017. Several programs have been introduced which, it is hoped, will drive renewable energy business growth and help hit the target. Programs introduced include Generation Based Incentives (GBI), Renewable Energy Certificates, Renewable Purchase Obligation (RPO) and Feed-in-Tariff (FIT).
These different incentives and programs are starting to bring rewards, with 2011 seeing investment of over $10 billion in the renewable energy sector in India. This quantifies as 60% year-on-year growth in investment from 2010, demonstrating the impact renewable energy is already having on the Indian market.
The rising popularity of solar energy is one of the factors helping shape the overall industry, with the government setting a target of 20GW of installed solar power by 2020. This target will be driven by the government's Jawaharlal Nehru Solar Mission (JLNSM), which will help in promotion of the target, and encourage further investment in the solar energy sector.
For more information on the Indian renewable energy market, see the latest research: India Renewable Energy Market
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