Country focus - India

It is some years since the RETPS last promoted UK industry in India. In many ways, the underlying climate for renewables seems outwardly similar to period before the heady days of major tax incentives for wind developments in the late 1990s. Federal regulations to promote renewables seem to be weak or absent. Utilities often represent the immediate customer for renewables power, yet in many cases do not themselves have credit ratings adequate for normal project financing.

Nevertheless, there are some federal tax concessions to renewables developments, and there is an official national target for renewables deployment of 24.3 GW by 2012 (17.6 wind, 3.4 small-scale hydro and 3.3 bioenergy). Installed capacity at mid-2007 was 10.6 GW (7.2 wind, 2.0 small-scale hydro and 1.4 bioenergy).

A number of individual states have introduced their own Renewables Portfolio Standard programmes, requiring the inclusion of renewables by utilities. Some progress is being made, and these programmes are largely the drivers for a rate of deployment of some 1 GW per annum, mostly of wind power. Industry commentary assesses that this rate of deployment will rise to some 3-4 GW per annum if an effective federal programme is introduced.

This project is clearly attractive to companies seeking newly accessible markets. Already technology, consulting, legal and finance companies are finding growing business in India. The main technology involved is wind, though growth in others seems likely to follow.

With the present involvement of influential professional companies in India, and the model of China’s experience illustrating the attractions of developing the renewables sector, it seems likely that India will follow federally in some form. Now is an excellent time for UK renewables companies to position once more in India.

The next relevant trade event in India is POWER-GEN India in New Delhi, 3-5 April 2008, which covers power generation in general, with particular regard to fossil and hydro. A UK pavilion is being arranged through the British Hydropower Association (BHA). The RETPS is also planning to attend and to use the visit to inform the preparation of a programme of renewables trade promotion there.

UK companies interested in participating should contact Ellan Parry of BHA at ellan.parry@british-hydro.org tel: +44 (0)1202 880333.