More investment, contract sanctity and strong regulation are need of the hour for the Indian renewable industry, says the concerned government body.
The Council on Energy, Environment and Water (CEEW) said the country will require USD 30 billion in annual investment and strong regulations to protect the contract sanctity.
“Today, we are averaging about USD 11 billion a year in renewable investments, we ideally should be getting USD 30 billion per year in India,” says Arunabha Ghosh, CEO of CEEW.
Ghosh was speaking on the side-lines of the Singapore International Energy Week that saw a series of conferences during October 29-November 01, 2019.
He says strong regulation enforcement, transparency in the bidding process and contract sanctity will naturally bring international investments to Indian renewable sector.
In saying contract sanctity, Ghosh means disallowing changes in terms and conditions post the contract approval and allowing compensation to the investor or operator in such case.
He emphasized on the need to de-risk projects, especially in terms of currency fluctuations policies and off-takers.
Citing a CEEW study on financing a de-risked project, Ghosh said 60-75% of electricity tariff costs are actually the finance costs, not the cost of renewable energy equipment like solar panels or turbines.