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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.
th
th
5 GW from Small Hydro power. India has attained 4 and 5 positions Energy efficiency domain in India offers several opportunities for
in wind and solar power installed capacities globally and is now at 5 investments. The LED program has been a shining example of aggre-
th
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- and distribution is likely to be in the tune of USD 250 bn over the next
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
by policy favouring domestic production while reducing imports as
seCtor overvieW much as possible, amid a substantial growth of coal consumption
driven by economic growth and higher power demand. Earlier, 100%
100% FDI FDI under automatic route was allowed for coal and lignite mining
in exploration and production; 49% FDI in refining under automatic route for captive consumption by power projects, iron and steel and ce-
ment units and other eligible activities. The Government has now
INR 7.01 bn decided to permit 100% FDI under automatic route for sale of coal,
total inbound FDI (2000-19); FDI increased by 22% from April 2014 –
for coal mining activities which would fully open up coal mining to
march 2019
foreign players. This would help get latest technologies, reduce fuel
nd
2 largest shortages that have crippled the power sector, and boost economic
refiner in Asia. From a total capacity of 63 MMTPA in 1998, the Indian growth by attracting fresh investment.
refining sector has increased nearly fourfold to reach a capacity of 234
MMTPA from 23 refineries new Investment Avenues
3 largest
rd
Channelizing investment to areas crucial for energy sustainability is
consumer of crude oil
important. A variety of investment opportunities are available. Solar
41.87 bn tonnes PV, wind power (onshore & offshore), bio-fuels, energy efficiency, VRE
Conventional hydrocarbon resources in 26 sedimentary basins of the integration and associated technologies, green corridors to evacuate
country (oil and oil equivalent of gas) renewable power, energy storage comprising of multiple technolo-
gies, E- Mobility eco system, smart grid technologies, building effi-
ciency projects, efficiency improvement in energy intensive sector
mestic natural gas output, which in turn will inevitably lead to signifi- are all investment opportunities. Opportunities exist in the entire
cant investment towards infrastructure development . value chain- manufacturing, supply chain and services in these ar-
4
eas. The adoption of new disruptive technologies such as smart grid
Power sector technologies, battery storage, EVs, Al based automation etc. needs to
be facilitated by creation of awareness, capacity building of critical
Overall investment in power sector across generation, transmission stakeholders such as utilities and creating a conducive ecosystem for
attracting investors such as angel funds, venture capitalists, develop-
decade. In the Union budget 2019-20, the Government has proposed ment institutions, which can assist in start-up funding towards these
package for the power sector and has announced plans to launch newer areas in energy technology going forward.
tariff and structural reforms in the sector. The Government has pro-
Significant efforts are being made to improve the investment cli-
posed “One Nation-One Grid” model to ensure power availability to mate in the country by increasing transparency and laying down
the states at affordable rates. well defined procedures. Towards this government is in process to
Significant efforts are being made to improve the investment climate launch a scheme to invite global companies through competitive
in the country by increasing transparency and laying down well defined bidding to set up mega-manufacturing plants in advanced technol-
procedures. Towards this government is in process to launch a scheme ogy areas such as PV cells, lithium storage batteries and solar pow-
to invite global companies through competitive bidding to set up me- ered charging infrastructure.
ga-manufacturing plants in advanced technology areas such as PV cells,
lithium storage batteries and solar powered charging infrastructure. 1 World energy Investment (WeI) report by the International energy Agency (IeA)
published on may 14, 2019.
coal sector
2 Invest India
3 economic survey of India 2018-19)
Coal supply investment in India grew by 5% in 2018, underpinned 4 Deloitte: the evolving energy Landscape in India I opportunities for Investments
energising sustainable & prosperous Future 73