India now becomes potential market for solar energy investments

Indian solar

The struggling solar market in India can relieve as new investments are pouring in from some of the leading companies thanks to the immense potential for renewable energy in India.

Of late, GE invested $24 million in a solar power plant from Welspun Energy. The 151-megawatt photovoltaic plant is the first such investment of GE in India. The plant in Neemuch in central Madhya Pradesh state operates at a capacity utilization factor of 26 percent, the company said.

The investment is part of GE’s strategy to invest more than $1 billion a year globally in renewable projects that promise very significant returns.

Indian solar

Raghuveer Kurada, business leader for India and South East Asia at GE Energy  Financial Services, says, “India has gained incredible potential for the development of solar power. Our investment in Welspun Renewables’ solar project helps to realize that potential.”

The plant in Neemuch in central Madhya Pradesh state operates at a capacity utilization factor of 26 percent, the companies said today in the joint statement. The figure is a measure of how efficiently a plant produces energy, compared with its maximum capacity.

In another such development, a collaboration from Middle East — National Solar Energy Federation of India (NSEFI), Solar Alliance of Gulf Cooperation Council (GCC) and Saudi Arabia Solar Association – said they are contemplating to invest in the country both in terms of finance and technology. They plan to form joint ventures with Indian manufacturers based on their engineering capabilities.

Investment was a major challenge in Phase I of the Jawaharlal Nehru National Solar Mission (JNNSM). In the first phase investment came from export credit agencies, multilateral financial institutions and some non-banking financial companies.     World Bank has estimated India requires investment of over $13 billion in the next three years to meet the target of adding 9,000 MW of solar power in the second phase of JNNSM.

With National Solar Mission, India is projected to have solar energy capacity of 10,000 MW by 2017. By 2022, the country expects to install 20,000 MW.

picture source: mydosti.com

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