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India Ranked 2nd In EY Renewable Energy Attractiveness Index

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Indian has ranked 2nd among 40 countries on ‘Renewable Energy Country Attractiveness Index’ 2017 released by Ernst and Young (EY). This marks an improvement of one spot as compared to 3rd rank in 2016.

Renewable Energy Scenario in India:

India maintained its upward trajectory on the index on account of Central Government’s programme to build 175 GW in renewable energy generation by year 2022.

  • This initiative is in direction to realise a larger vision of wherein renewable energy will account for 40% of installed capacity by year 2040.
  • India has added more than 10 GW solar capacity from 2014-17.

Challenges for Indian Government:

With more penetration of renewable energy, Indian Government will have to deploy resources to manage intermittent renewable energy, especially during evening hours, when solar power availability drops.

  • India’s regulators must be mindful of the erosion of electricity market peaks caused by surge in volumes of renewables and occupation of storage capacity. This can jeopardise d 2nd among 40 countries on ‘Renewable Energy Country Attractiveness Index’ 2017 released by Ernst and Young (EY)the economics of thermal power plants and can consequentially risk the stability of the system.
  • Indian government needs to enhance the level of compliance with the Renewable Purchase Obligation (RPO). It also needs to ensure that Indian power distribution companies (DISCOMs), have the capacity to continue to purchase renewable electricity.
  • Availability of funds for investment in renewable space remains a concern. However, this can be resolved by liberalising foreign investment norms.
  • Progress in increasing installed rooftop solar capacity has been very slow. As on December 31, 2016 it stood at meagre 1,247MW which is hardly 3% of the targeted 40GW by 2022.

Other Countries in EY Renewable Energy Attractiveness Index, 2017:

  • The index has been topped by China.
  • US ranked at 3rd position. US ranking has dropped on this index for the first time since 2015. This drop has been attributed to current US administration’s actions for reviving the US coal industry and decision to review the US Clean Power Plan.
  • Kazakhstan at 37th, Panama at 38th and the Dominican Republic at 30th have featured in the index for the first time.