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Investment opportunities across the energy sector a leading role in advancing renewable energy through their efforts to
achieve a wide range of interlinked environmental, economic and so-
Renewables cial goals. Cities are adopting some of the world’s most ambitious tar-
In 2017, India was ranked as the second most attractive Renewable gets for REs. By the end of 2018, more than 230 cities worldwide had
energy market in the world. India has embarked upon the world’s adopted targets for 100% renewable energy in at least one sector, and
largest expansion plan in renewable energy and has set an ambitious more than 50 cities had set comprehensive REs targets. The smart
target of 175 GW of renewable power by 2022, which includes: 100 GW cities (REN 21) initiative of India presents opportunity for investors
of Solar power, 60 GW from Wind power, 10 GW from Biomass power, and technology providers.
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5 GW from Small Hydro power. India has attained 4 and 5 positions Energy efficiency domain in India offers several opportunities for
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in wind and solar power installed capacities globally and is now at 5 investments. The LED program has been a shining example of aggre-
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global position for overall installed renewable energy capacity. India gating demand and reaping benefits of economies of scale. Similar
today is one of the most attractive renewable energy (RE) markets, strategies are being adopted in the case of Electric vehicles.
with exponentially increasing demand and proactive policy support,
allowing 100% foreign investment through automatic route. The FDI oil & gas
inflows in the non-conventional sector during April 2000-March 2019
stand at USD 7.8 bn. 2 Riding on the back of favourable policy regime and accelerated de-
• Additional investments in renewable plants up to year 2022 mand, the oil & gas sector, across upstream, midstream and down-
(without transmission lines) would be about USD 80 bn at stream could attract USD 325 bn by 2030. A cumulative investment
today’s prices. of USD 40 bn is expected in the Indian Exploration & Production sec-
• Investment of around USD 250 bn would be required for the tor in the near term over a medium-term horizon, largely driven by
period 2023-2030. On an annualised basis, investment oppor- a host of favourable policy measures benefiting the E&P players and
tunity for over USD 30 bn expected to come up for the next other industry incumbents. This is likely to pick up and garner more
3
decade and beyond . interest from global players looking into India. Close to USD 136 bn
In 2018, the total renewable power investment topped fossil fu- investments in the Indian gas sector by 2025, a large part of which
el-based power three years in a row, supported by Government auc- includes strengthening of infrastructure – RLNG terminals, pipeline
tions, tendering and uncertain financial prospects for new coal power. projects etc. and expansion of City Gas Distribution network. The
Grid investment rose by 4%, with one-fifth increase in transmission, government’s push towards a gas-based economy has given signifi-
but spending in distribution remained flat. Globally cities are taking cant thrust to liquefied natural gas (LNG) imports, given the low do-

government initiatives

FISCAL
1100% FDI 3 INCENTIVES 5 FINANCING
100% FDI permitted in all Accelerated depreciation national clean energy Fund
renewable sources of power concessional custom duty Priority sector lending from banks

RENEWABLE GREEN ENERGY EASIER
2 OBLIGATIONS 4 CORRIDOR 6 CLEARANCES
renewable purchase obligations UsD 6.5 Bn investment to enable Classification to white goods category,
renewable generation obligations the flow of renewable energy enabling easier environmental
into the national grid clearances for projects

72 shaping new energy dimensions