India Relegates in Global Renewable Market Index, Ranks at Spot 4

A report by UK accountancy firm, Ernst & Young (EY) has attributed the relegation in India’s ranking to the latest auctions in which the wind and solar tariffs were kept low.

Indian has slipped two ranks in renewable energy country attractive index making it rank 4^th in the list preceded by China, US and Germany.

A report by UK accountancy firm, Ernst & Young (EY) has attributed the relegation in India’s ranking to the latest auctions in which the wind and solar tariffs were kept low.

Furthermore, the lingering issue of import duties on solar equipment also has affected the ratings of India in the renewable energy sector, the report states.

In the year 2016 and 2017 the ranking of India on the index was third and second respectively.

“Disputes between developers and distribution companies are raising investor concerns,” the report said.

Currently, the solar tariff in the country stands at meagre Rs 2.44 per unit, whereas the wind tariffs stand at Rs 2.43 per unit.

At the end of FY18, the renewable capacity of the country is 69,685 MW while as the target to achieve for FY22 is 1,75,000 MW.

Not only India has dropped the ranks there are countries like Chile, Mexico, Argentina and Canada who have also seen the relegation in the index. The main reason behind their falling from the spots was the drop in addition of wind energy from 702 MW in 2016 to 340 MW in 2017.

The four new countries that have joined the ranks include Taiwan, Poland, Norway and Indonesia in the 40 country ranking.

There were some notable upward movements in the index as well. Wherein, country like UK has moved up three spots to 7^th position while Netherlands has moved to ninth from his earlier 15^th rank.