- The Indian Cabinet has approved a target of 100GW solar capacity by 2022, and interim national and state-level annual targets have been set.
- Major domestic and international investors and project developers continue to pledge billions of dollars to develop multiple gigawatts of capacity in India.
- The Government plans to award US dollar-linked solar contracts to help drive down prices with lower borrowing costs, while some solar projects are already reaching grid parity.
- Key challenges such as land acquisition, uncertain local support, and distribution companies' financial weakness will need to be addressed if India is to come close to meeting its ambitious renewables targets.
Making it happen Few doubt the Indian Government's commitment to transforming its energy sector, or that the demand for secure and affordable power is immense and growing —latest UN figures expect India to overtake China as the world's most populous country as early as 2022, a trend that will continue for several decades.
With so many challenges affecting the ease of doing business in India, however, there are still many broken parts to fix, which will take time.
Yet if some of the larger, more experienced investors and developers making bold pledges can overcome some of these risks, reduce costs, and accelerate knowledge transfer this will deliver projects that establish proof of concept for bankable renewables projects in India, and could accelerate the growth of one of the world's most attractive renewable energy markets.
Given the size of the prize, the world's eyes will stay on India for some time to see whether it can deliver.