Indian energy sector overview
By 2040 India’s share of global energy use rises to 11 percent, meaning that 30 percent of global energy demand growth comes from India (https://www.worldbank.org/en/country/india/overview). The fast growth is largely led by renewables.
This means the Indian renewable sector grows rapidly. India has the largest renewable energy expansion plan globally. Increasing disposable income and improvement in living standards cause energy demand to increase by around a third.
According to the Government of India’s plans, by 2020 around 49 percent of the total electricity will be generated by renewable energy sources. The use of renewable energy instead of coal will save around USD 9 billion annually.
However, coal consumption is still increasing in India, to make up for the rapidly increasing demand.
The growing energy demand cannot be met by a single source. India is expected to see a large investment of around USD 100 billion by 2025, to develop the oil and gas infrastructure.
According to the 2018 Climatescope report India ranked second in the emerging economies to lead the transition to clean energy. As of October 2018, India ranked 5th in installed renewable energy capacity. (IBEF).
How to benefit from the rapidly growing Indian renewable energy market?
India is facing multiple challenges while trying to negotiate between economic growth, environmental challenges like air and water pollution and rapidly increasing need for more energy sources. There is a huge need for sustainable business models and technologies & processes e.g. to convert agricultural waste into energy.
The National Biofuel policy aims at waste-to-wealth creation, targeting agricultural residues and municipal waste.
Air and water pollution are major challenges in India, and addressing the root causes requires holistic solutions from energy to waste treatment and civic education.
In the private sector, there are big players like Tata Power Solar Systems Ltd and Suzlon but many startups have become significant players. ReNew Power, founded in 2011, is today India’s largest renewable energy producer, with around 5GW generation through more than 100 wind and solar plants, covering roughly 1% of the country’s total electricity needs.
Many interesting AI-driven startups have emerged in recent years, providing smart solar rooftop solutions, which are becoming very popular. The environmentally conscious citizens are key drivers in demanding and adopting them.
India offers great opportunities both in private and government sectors for technologies, solutions, professional services. Several state governments have ambitious programs where procurement takes place via competitive bidding.
Asian Insiders has an extensive network at ministries, research institutes, and corporates, enabling your company to find the best stakeholders to work within India.
It is important to understand, that entering the Indian market requires long-term commitment and presence in the market, either directly or in partnership with a solid local partner.
Read more about our services here
Foreign presence in India in the renewable sector
Many foreign companies are operating in the renewable sector in India, e.g. Enercon (Germany), Vestas (Denmark), Applied Materials (US), BankEnel (Italy), Gamesa (Spain), Orix (Japan), Nordex (Germany), Mudajaya (Malaysia) and Fortum (Finland).
In 2018, in the state of Gujarat, three foreign players won domestic companies in a solar auction, where Soft-Bank backed SB Energy and Fortum bagged 250 kW each and French major Engie 200 kW respectively.
Government of India has created incentives for investors and according to the Department of Promotion of Industry and Internal Trade DIIPT, FDI inflows in the Indian non-conventional energy sector between April 2000 and March 2019 stood at USD 7.8 billion.
Similarly, several measures have been taken to improve India’s position at the World Bank’s ranking of Ease of Doing Business. Ernst & Young ranked India in 2018 as the fourth Renewable Energy Country At tractive Index.
https://www.india.gov.in/topics/power-energy/renewable-energy is a governmental portal providing information of projects, grants and government schemes.
- Indian renewable sector grows rapidly and the government is relaxing its policies to attract foreign investment and know-how
- Now it is a great time to take advantage of the massive growth in Indian renewable sector
- To be successful in Indian market requires a long-term commitment, having your value proposition adjusted in the Indian realities, local presence, and right partners
- India’s own industry and competence-base is developing, but a lot of expertise, technology, and components are needed from overseas
- We at Asian Insiders can help you getting ready and entering the Indian market