India at 3rd position in RE Investment attractiveness index

WHY IN THE NEWS?

Ernst & Young’s (EY) Renewable Energy (RE) Country Attractiveness Index was recently published in which India has been ranked at 3^rd position.

About:

• RE Investment attractive index ranks the world’s top 40 nations with respect to the attractiveness of their deployment opportunities and renewable energy
• In the index, India retains its third position while US retains the top position.
• China has been ranked at second position.
• As per report, conditions are ripe for rapid growth across renewables generation. The major challenge will be inadequate grid investments.
• According to Index, corporate power purchase agreements were the key driver of clean energy growth in the light that, environment, social, and governance measures are becoming top agenda for companies and investors.

India’s Rank in PPA Index

Among the top 30 power purchase agreement (PPA) markets, India has been ranked at sixth position. PPA Index focuses on attractiveness of renewable power procurement. It ranks the growth potential of country’s corporate PPA market.

India’s renewable energy market

Renewable energy market conditions in India, including policy decisions, investment & technology improvements focus on self-reliant supply chains. It has taken India’s clean energy transition to new heights. Report notes that the drive to integrate volumes of variable resources will put the grid infrastructure under significant strain. It also notes that, investment required to upgrade and expand energy transmission infrastructure will be a key challenge across the world.

Which countries have transitioned towards clean energy?

France and the UK have switched to clean energy, while Germany has edged back ahead of Australia as its onshore wind market was fruitful in first half of 2021. Germany has added 971 MW, accounting for a rise of 62 per cent as compared to first half of 2020.