New policy plans for India stimulates confidence and investment in solar energy
- 06 December 2012
NEW DELHI: India has released a draft policy stating the nation will build 9,000 megawatts of solar plants by 2017, which will increase confidence and investment in solar energy within the emerging economy.
The Ministry of New and Renewable Energy’s National Solar Mission policy sets out plans to boost grid-connected solar to over eight times its current capacity, based on the Government’s need to ‘promote ecologically sustainable growth while addressing India’s energy security challenge’.
Included in the policy are plans to:
- auction 1,650 megawatts of photovoltaic capacity in the next financial year
- release direct grants covering up to 40% of the upfront costs of building solar projects
Beyond India, a big contributing factor towards global growth in clean energy investment is due to the success of solar power, according to research by Worldwatch Institute’s Climate and Energy Program. It found that solar was propelled by a 50% price drop and US$147.4 billion in investment in 2011.
Aditi Dass, Director of Technology Programs, The Climate Group said: “This new policy draft comes in as a shot in the arm for the solar sector, which is already under the spotlight as far as Government focus is concerned. The announcement certainly sends out a very clear message about the Government’s mandate to accelerate the clean energy growth map and will go some way in stimulating India’s energy markets.”
Read the draft policy here.
See our India perspective on COP18.