Friday, September 19, 2014: Private players are not showing any interest in the solar and wind energy sector due to policy and financing reasons after the Centre has prescribed about the AP’s plan.
As per experts the solar and wind energy sector is observing a gradual fall after witnessing lack of renewable purchase commitments by state power utilities, unwillingness of domestic banks to lend money and frequent changes in proposed incentives. They suggest that the prevailing finance plan of solar and wind power requires subsidies, long-term certainty and tax relief for renewable energy generation. Clean energy investments in 2013 were observed to be lowest since 2010 at Rs. 347,130 million.
CEO of Council on Energy, Environment and Water, Dr. Arunabha Ghosh told that even after doubling the installed solar capacity to over 2.5 GW in 2013, India solar market is not progressing. ‘Green bonds’, which are popular in international markets are suggested by experts to foster the growth of solar market in India. Ritu Mathur of TERI said that Medium-to-long term innovative financing schemes should be tried including a green bank and green bonds.
Top five states which contribute around 70 per cent of renewable energy are Tamil Nadu, Maharashtra, Gujarat, Rajasthan and Karnataka.
