Renewable Energy Investments in India Not Growing Fast Enough

The renewable energy sector in India attracted investments worth $4.1 billion in 2008, up by 12% over the previous year, according to UNEP’s Global Trends in Sustainable Energy Investment in 2009. The global investment was $155 billion.To realise the full investment potential in renewables, the government must provide an enabling framework and remove policy, financial and technical bottlenecks to promote the sector, said a group of senior industry leaders at a roundtable meet in Delhi, recently.

In comparison, aggregate investment in developing countries went up by 27% to $36.6 billion. Brazil witnessed an increase of 76% to $10.8 billion, and China grew 18% to $15.6 billion over last year. India also ranks below the US, Germany and China in Ernst & Young’s Renewable Energy Country Attractiveness Indices.

Arun Seth, alternate director, Acme Telepower, said, “Foreign investors are not coming into the country because they can’t handle the prevailing policy uncertainty in the country.”