Industry Overview

 

Since 2000, the global renewable energy capacity has increased by app. five times to reach 1,46,073 MW in 2008. This growth has primarily been driven by the wind and solar power segment. During the period 2000-08, wind power and solar PV capacity grew at a CAGR of 27% and 44%.

India's renewable energy ( RE ) capacity of 14.9 GW, against estimated gross RE potential ( upto 2032 ) of 220 GW, is just 9.7% of the total installed generation capacity of 150 GW ( as on July 31, 2009 ). However, during the last couple of years, the share of renewable energy in installed capacity has grown from 5% to 9.7%.

Of the total RE capacity of 14.9 GW, wind energy accounts for app. 10.2 GW. This growth is due to the generation returns coupled with the accelerated depreciation benefits.

The total renewable power capacity addition of 15,000 MW is envisaged during the current 5-year plan period (2007 - 2012) and an ambitious target of 20,000 MW of solar power is envisaged by the year 2020 under the National Solar Mission announced recently by the Prime Minister Office, Govt. of India.

India recorded significant transaction activity with deals worth US$ 2,155 m being announced between January 2005 and July 2009. The average deal size is US$ 69.5 m during this period. Huge demand - supply gap in power, depletion of fossil fuels and energy security have been the key drivers behind sustained investments in this sector.