India needs over $200 bn of investment in renewable infrastructure | Current Affairs, Current Affairs 2018

India needs over $200 bn of investment in renewable infrastructure

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India is on track to catalyse USD 200 billion to USD 300 billion of new investment in its renewable energy infrastructure in the next decade with global capital inflows playing an increasingly crucial role, a top financial analyst with a leading US-based institute foresees.
India’s decarbonisation policy is in line with global trends which, since 2011, have been seeing investments in renewable energy infrastructure running at two-three times of that for new fossil fuel capacities, according to Tim Buckley, Director of Energy Finance Studies Australasia with the Institute for Energy Economics and Financial Analysis (IEEFA).
At present, India relies on thermal power generation for 80 per cent of its electricity, while hydro supplies a significant 10 per cent and renewables just seven per cent. However, India has set an ambitious but achievable national target of 275 GW of renewable capacity installed by 2027, reports IANS.
Changes to tap renewable resources are on the way. Indeed, the tipping point may have been 2016-17, when the net thermal capacity plummeted and renewable installs more than doubled, Buckley said in his report “Indian electricity sector transformation”, made public on Tuesday.
These developments continued into 2017 with costs of both falling by an unprecedented 50 per cent and recent tenders now pricing renewables at 20 per cent below the average price on existing Indian thermal power generation.
The report examines the rapid transformation in India’s electricity market, showing how renewable energy and energy efficiency measures can help the country minimise the growth of coal-fired electric generation.

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