India has moved up a position to the third spot in the Renewable Energy Country Attractiveness Index (RECAI) released by EY on Wednesday.
Also, India’s solar sector is expected to grow significantly post the pandemic, with generation from solar PV forecast to exceed coal before 2040, EY said in a statement.
This dramatic change has been driven by the Indian government’s policy ambitions, which has led solar PV to be the most cost competitive source of power in the region and improving further with time, it added.
“India has moved one position above (3rd) from the previous index (4th), this is primarily because of the exceptional performance on the solar PV front.
The RECAI ranks the world’s top 40 markets on the attractiveness of their renewable energy investment and deployment opportunities. The rankings reflect assessments of market attractiveness and global market trends. The US retains top position on the 57th index.
The installed solar capacity in India grew nearly 12% to 39GW in financial year 2020-21. “The economic attractiveness of solar PV and intense competition from the private sector has led to record low tariff bids in India,” said Somesh Kumar, Partner and National Leader, Power & Utilities, EY India. The US and China retained their first and second positions, respectively.
Ben Warren, EY Global Power & Utilities Corporate Finance Leader and RECAI Chief Editor said the impact of the pandemic on economies worldwide seems to have refocused investors’ minds on the environmental, social and corporate governance agenda and there is a growing trend towards considering the climate crisis and the energy transition when deploying capital.