India has moved up to the second spot from third position in this year’s ‘Renewable energy country attractiveness index’ released by EY.
This is primarily due to a combination of strong government support and increasingly attractive economics, EY said in a statement.
According to the statement, India continued its upward trend in the index to second position with the government’s programme to build 175 GW in renewable energy generation by 2022 and to have renewable energy account for 40 per cent of installed capacity by 2040.
The country has added more than 10GW of solar capacity in the last three years – starting from a low base of 2.6 GW in 2014, it said.
“In the medium term, as renewable energy penetration rates increase, the government will have to turn its attention to the ability of India’s grid to manage intermittent renewables, especially around the evening peak, when solar availability falls away,” Somesh Kumar, Partner & Leader, Power & Utilities, EY India, said in the statement.
The cost and availability of energy storage technology could dictate how close India gets to meeting its renewable targets. Meanwhile, India’s regulators must be mindful of the erosion of electricity market peaks caused by growing volumes of renewables and storage – this can undermine the economics of thermal power plants, risking the stability of the system as a whole, he added.