Indian Business Potential

According to CII's Energy 2000 Conference held in Chennai during November / December 2000, India with it's current capacity of generation of appx. 100,000 MW (through both conventional & renewable energy sources) is facing serious power supply problems of supply 30% below demand, and frequented by outages.

Hence, the Government is keen on increasing the capacity by another 100,000 MW through modernisation of existing plants and also by promoting Greenfield Projects, of which 'renewable energy sources' will have a share of 6% from the present level of 1.67% by the year 2012.

The Ministry for Non-conventional Energy Sources (MNES) has identified the potential for 'renewable energy' power generation in India as follows :

In addition, the Government of India has established a separate Financial Institution since 1987 viz. Indian Renewable Energy Development Agency (IREDA) based in New Delhi. IREDA with its own resource base of Rs. 1,000 ( One Thousand) crores and through International Loan Syndication of Rs. 5,000 (Five Thouusand) crores is promoting and financing upto 85% of the small-scale & large-scale Renewable Energy Projects in India utilising Wind, Solar, Municipal Wastes, Agricultural Residues and Mini Hydros. So far, IREDA has approved 1,516 projects for Renewable Energy Power Projects of 1,805 MW capacity (as of 31st December 2001). As a result of this, India is now the World's No.1 in Renewable Energy.

RENCO's research in India shows that India would have to spend about US$ 10.0 (ten) billion per annum to satisfy the energy demand (both conventional and non-conventional) by the year 2012 and most of it will have to come from overseas in the form of Foreign Direct Investments (FDIs) and Loan Capital. Through such efforts, the renewable energy power generation will become competitive in the market place in India.

RENCO works closely in conjunction with several organisations in India for the promotion of Renewable Energy Technologies, Carbon Credits and Equity / Project Finance and they are : M/s The Energy & Resources Institute (TERI), New Delhi, Ministry of Non-conventional Energy Sources (MNES), New Delhi, M/s Indian Renewable Energy Development Agency (IREDA), New Delhi, M/s Tamilnadu Energy Development Agency (TEDA), Chennai, Institute for Energy Studies (IES) Anna University, M/s Avant-Garde Engineers & Consultants (P) Ltd., Chennai M/s Winrock International (a USAID-funded Development Agency), New Delhi and the Confederation of Indian Industry (CII) .

'Renewable Energies' are projected to be the fastest growing energy sector of consumption across the world and are set to double by 2020, according to the figures from the Industrialised World's Energy Watchdog, the International Energy Agency (IEA) .