India has a healthy expanding renewable energy market for a developing country with a total of 53,000 MW of energy forecast to be produced by renewable sources by 2017. In 2012, the Indian renewable energy market still represents a significant part of energy generation in India with 12% of total electricity being generated by renewable energy sources. In contrast, gas accounted for 9%, coal, 56% and 20% of total electricity sourced from hydro-based sources. Only a total of 2% and 1% was sourced from nuclear and diesel based power, respectively.
The Indian government is keen to see the renewable energy sector expand with inward investment and healthy competition and so multiple benefits have been provided to companies wishing to either invest or develop the technology behind renewable energy production. Government funded loans, excise duty exemption, custom duty concession and financial support have all been provided to promote renewable energy competitiveness and growth.
Partly as a direct result of the government support, India's renewable energy sector has seen a 60% increase in investment with approximately US$10 billion invested in India's renewable energy industry during 2011. In addition, the introduction of Jawaharlal Nehru Solar Mission for the promotion of solar energy is expected to accelerate investment in solar energy production. The government has set a target of installing 20 GW of solar energy by 2020.
Through a combination of government support and the increased need for reliable energy sources which are sustainable for a rapidly expanding economy, the government has set a target of 53,000 MW from renewable energy sources by 2017. A number of programmes have been introduced to attain this target including Generation Based Incentives (GBI), Renewable Energy Certificates, Feed-in-Tariff support, solar specific, Renewable Purchase Obligation, Generation Based Incentives and long term PPAs.
For more information on the India renewable energy market, see the latest research: India Renewable Energy Market
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