Ernst & Young ranks India 4th on renewable energy market potential

India has been consistently ranked among the top five countries (globally) in terms of its market potential for renewable energy.

With power generation from renewable sources on the rise in India, share of renewable energy in country’s total energy mix increased from 7.8 per cent in financial year 2008 to 12.1 per cent in financial year 2012.

India had around 26 GW of installed renewable energy capacity as on August 31, 2012 and plans to more than triple its renewable energy capacity in the next 10 years, driven mainly by wind and solar, the study said.

India ranks fourth on Ernst & Young’s renewable attractiveness index after China, the US and Germany. It ranks second on the solar index, and third on the wind index, says the latest study by Ernst & Young – UBM India.

Solar energy sector continues to be an attractive alternative for investors wanting to shift their focus from Europe’s declining solar sector and has attracted investments worth $4.2 billion in 2011 – growing nearly seven-fold from 2010.

The report stated that investments in clean energy in India had increased by 54 per cent year-on-year, representing the highest growth rate across any significant global economy, to reach $10.2 billion in 2011.

The wind energy sector attracted investments amounting to $4.6 billion, while the solar energy sector witnessed investments of $4.2 billion, it said.

Sanjay Chakrabarti, Partner & National Leader – Cleantech, Ernst & Young, said at the 6{+t}{+h} Renewable Energy India 2012 Expo, where the report was released, that renewable energy is expected to play a vital role not only from an environment angle but more importantly from the energy security perspective.