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wanting for more. The silver lining however is that, for India, for
energy security reasons, renewable energy and energy efficiency
projects have become an important area of engagement. Renewable
energy initiatives are showing promising results in terms of financial
resource allocation, particularly as investments are helped by proactive
policy making.
While it is difficult to have an overall figure for financial allocations
towards low carbon space, it is possible to get sector-specific figures or
trends. We will later on in this chapter seek to understand the financial
scenario of nine sectors relevant to low carbon development. Financial
indicators and case studies are a part of the sectoral overview. The
quantum of public finance allocations or the closest approximate of
that figure or trend is given. Moreover each sectoral analysis tries to
see if there are financial indicators other than public finance indicators
which can help to understand the trends in low carbon development
in those sectors. It must be emphasized that investment grade finance
is as important as public finance.
2.3.1 Renewable Energy
Renewable energy resources are, by definition, non-exhausting and
clean energy sources. According to the Ministry of New and Renewable
Energy, Government of India, energy generation based on biomass,
wind, hydropower (Small Hydro Power (SHP) projects up to 25 MW),
solar, geothermal, and tidal are renewable energy sources. India
has an estimated renewable energy potential of about 900 GW from
commercially exploitable sources viz. Wind—100 GW (at 80 metre mast
height); Small Hydro—20 GW; Bio-energy—25 GW; and 750 GW solar
power, assuming 3 per cent wasteland is made available (MNRE 2015).
Concerns about sustainable development, energy security, access to
energy and adverse impact of climate change are major drivers for
the Government of India to accelerate the deployment of renewable
energy harnessing technologies.
At a global level, renewable energy investments have had a very
interesting growth story as Figure 2.4 explains. The figures are for
new investments in renewable energy. The projected growth in RE
investments is also noteworthy. The compounded annual growth
rate (CAGR) for the total new investment in the renewable energy
sector was 20 per cent for 2004–14. In 2014, the global investment in
renewable power & fuels (excluding large hydro-electric projects) was
USD 270.2 billion which is nearly 17 per cent higher than the previous
276 Low Carbon Development in China and India
energy security reasons, renewable energy and energy efficiency
projects have become an important area of engagement. Renewable
energy initiatives are showing promising results in terms of financial
resource allocation, particularly as investments are helped by proactive
policy making.
While it is difficult to have an overall figure for financial allocations
towards low carbon space, it is possible to get sector-specific figures or
trends. We will later on in this chapter seek to understand the financial
scenario of nine sectors relevant to low carbon development. Financial
indicators and case studies are a part of the sectoral overview. The
quantum of public finance allocations or the closest approximate of
that figure or trend is given. Moreover each sectoral analysis tries to
see if there are financial indicators other than public finance indicators
which can help to understand the trends in low carbon development
in those sectors. It must be emphasized that investment grade finance
is as important as public finance.
2.3.1 Renewable Energy
Renewable energy resources are, by definition, non-exhausting and
clean energy sources. According to the Ministry of New and Renewable
Energy, Government of India, energy generation based on biomass,
wind, hydropower (Small Hydro Power (SHP) projects up to 25 MW),
solar, geothermal, and tidal are renewable energy sources. India
has an estimated renewable energy potential of about 900 GW from
commercially exploitable sources viz. Wind—100 GW (at 80 metre mast
height); Small Hydro—20 GW; Bio-energy—25 GW; and 750 GW solar
power, assuming 3 per cent wasteland is made available (MNRE 2015).
Concerns about sustainable development, energy security, access to
energy and adverse impact of climate change are major drivers for
the Government of India to accelerate the deployment of renewable
energy harnessing technologies.
At a global level, renewable energy investments have had a very
interesting growth story as Figure 2.4 explains. The figures are for
new investments in renewable energy. The projected growth in RE
investments is also noteworthy. The compounded annual growth
rate (CAGR) for the total new investment in the renewable energy
sector was 20 per cent for 2004–14. In 2014, the global investment in
renewable power & fuels (excluding large hydro-electric projects) was
USD 270.2 billion which is nearly 17 per cent higher than the previous
276 Low Carbon Development in China and India
