According to Climatescope Survey ‘Emerging Markets Outlook 2020 : Energy Transition in the World’s Fastest Growing economies’ released by Bloomberg New Energy Finance Limited (BNEF) India with a score of 2.61 dropped to the 2nd position in the 2020 survey due to decline in Clean Energy Investment. India’s investment declined from 32% in 2017 to 12% in 2018-2019. Chile topped the survey rankings with a score of 2.85, Brazil came third with a score of 2.44.
i.BNEF has surveyed more 108 emerging markets and for the first time 29 Developed nations for the Climatescope survey project.
ii.This is the 9th year of the Climatescope project.
iii.India topped the BNEF’s Climatescope Emerging Markets Ranking in 2019.
i.Globally, emerging markets have been a major factor behind Clean energy’s rapid increase. Since 2013 developing nations have accounted for half new global clean capacity installed.
ii.Emerging markets accounted for 58% of USD 249 Billion asset finance in clean energy in 2019.
iii.China (Mainland) & India remain the biggest markets for clean energy investment, with China being the largest. Together they accounted for USD 94 Billion of new wind/solar investment and 76 Giga Watts (GW) of wind/solar build in 2019.
iv.India built 14 GW of wind/solar in 2019, whereas China built 62 GW.
v.Coal still accounts for 44% of all power produced in emerging markets.
Chile met its 2025 clean energy mandate target of 20%. It is now aiming for 60% of power generation from clean sources by 2035.
Solar capacity in the Decade:
China and India accounted for 92% of the decade’s (2010-20) added solar capacity.
India’s Ambitious Renewable Energy target of 175 GigaWatts (GW) has made it a favourable place for Renewable energy investment.
Solar Capacity Additions:
i.India is placed at 4th Rank in the Top 10 markets for solar capacity additions during 2010-19.
ii.It came 2nd in the Top 10 markets for solar capacity additions in 2019.
Wind Capacity Additions:
i.India is placed at 4th Rank in the Top 10 markets for Wind Capacity Additions during 2010-19.
ii.It came 5th in the Top 10 markets for solar capacity additions in 2019.
iii.Renewable energy sources excluding Hydro form a major part of India’s 377 GW installed capacity since 2017.
iv.India’s capacity additions from renewable sources have exceeded the capacity additions from coal.
The survey has 123 indicators and sub-indicators grouped into 3 key topic areas which focus on – Achievements in previous years, Current investment environment and future opportunities for clean energy growth.
The indicators are – Fundamentals, Opportunities & Experience.
i.Fundamentals – Assessment of Fundamental structures (energy policies, power sector structure, regulations) in a company which will help in boosting the clean energy.
ii.Opportunities – Calculates the Future opportunities for clean energy growth in a market. The opportunities are – market’s current and future electricity demand, energy consumption and CO2 emission from the power sector, opportunities for renewable energy procurement.
iii.Experience – Involves assessment of a market’s volume of installed clean energy and history of an economy’s renewable energy investment.
These indicators are then levelled against a market’s Gross Domestic Product (GDP), population, installed capacity and generation.
India’s Energy Targets:
India Targets 175 GW Renewable Energy by 2022 – 100 GW Solar, 60 GW Wind, 10 GW Bio-Energy, 5 GW Small Hydro. 89.63 GW of Renewable Energy has already been installed by India.
Recent Related News:
i.On April 28, 2020, According to a CRISIL Research report, Karnataka retained its 1st position in terms of total installed renewable capacity in FY20 followed by Tamil Nadu(2nd) & Gujarat(3rd).
ii.The new report on clean energy transition in India titled “Towards a Clean Energy Economy: Post-Covid-19 Opportunities for India’s Energy and Mobility Sectors” brought out jointly by NITI Aayog and the Rocky Mountain Institute (RMI) to support India’s clean energy future.
About Bloomberg New Energy Finance Limited (BNEF):
Director – William Young
Location – London, United Kingdom