India’s Rise in Renewable Energy: A Third Place Ranking on EY’s 2021 Renewable Energy Country Attractive Index

India’s remarkable progress in the renewable energy sector has not gone unnoticed. In 2021, the country was ranked third on the EY Renewable Energy Country Attractive Index (RECAI), a testament to its potential as a global renewable energy powerhouse. The RECAI ranks 40 countries on the attractiveness of their renewable energy investment and deployment opportunities. This blog article delves into the factors contributing to India’s high ranking and the implications for the country’s renewable energy future.

Key Factors Driving India’s High Ranking

Several factors have contributed to India’s impressive third-place ranking on the EY RECAI:

1. Ambitious Renewable Energy Targets: India has set ambitious renewable energy targets as part of its commitment to the Paris Agreement. The country aims to achieve 175 GW of renewable energy capacity by 2022 and 450 GW by 2030. These goals have sent a strong signal to investors and developers that India is serious about scaling up its renewable energy infrastructure.
2. Supportive Government Policies: The Indian government has implemented a range of policies and initiatives to promote the growth of the renewable energy sector. These include the introduction of competitive auctions for solar and wind projects, tax incentives, subsidies, and the establishment of dedicated agencies such as the Solar Energy Corporation of India (SECI) and the National Institute of Wind Energy (NIWE) to facilitate sector development.
3. Declining Renewable Energy Costs: The cost of renewable energy technologies, particularly solar and wind, has declined significantly in recent years. This has made renewable energy projects increasingly competitive with conventional power generation methods, attracting both domestic and international investment.
4. Rapid Capacity Expansion: India has witnessed rapid growth in its renewable energy capacity, particularly in solar and wind energy. The country’s total installed renewable energy capacity has increased from 34.5 GW in 2014 to 107 GW in 2021, with solar and wind energy accounting for over 75% of the total capacity.
5. Growing Energy Demand: India is the world’s third-largest consumer of energy, and its demand for electricity is projected to grow at a rapid pace in the coming decades. This growing energy demand presents significant opportunities for the expansion of renewable energy infrastructure in the country.

Implications for India’s Renewable Energy Future

India’s high ranking on the EY RECAI has several implications for the country’s renewable energy future:

1. Increased Investment: India’s strong performance on the RECAI is likely to attract increased investment in the renewable energy sector, both from domestic and international sources. This will help the country accelerate its progress towards its renewable energy targets and create new opportunities for businesses and employment.
2. Enhanced International Collaboration: India’s high ranking on the RECAI highlights its potential as a global leader in renewable energy. This could pave the way for increased international collaboration, technology transfer, and knowledge-sharing, further driving the growth of the sector.
3. Greater Adoption of Renewables: As India continues to climb the RECAI rankings, it is likely that the adoption of renewable energy technologies will become more widespread across the country. This could help drive the transition towards a cleaner, greener, and more sustainable energy future for India.

India’s impressive third-place ranking on the EY Renewable Energy Country Attractive Index in 2021 showcases the country’s potential as a global renewable energy powerhouse. Driven by ambitious targets, supportive government policies, and declining technology costs, India’s renewable energy sector is poised for rapid growth in the coming years. As the country continues to scale up its renewable energy infrastructure, it is well-positioned to emerge as a global leader in the quest for a cleaner, greener,