India among top 5 clean energy business hubs

The Indian government's Clean India programme seems to have made a mark with the country being ranked among the world's top 5 clean energy business hotspots.Bloomberg New Energy Finance (BNEF) has ranked India behind China, Brazil, Chile and South Africa in its 'Climatescope 2015' report which analyses the attractiveness of 55 countries as best places for renewables companies to do business.

The report said: “The new policy ambitions from the (Narendra) Modi government signal clean energy opportunities in the country.“Major reforms in India brought by the Modi administration bring hope of quicker deployment for the country's eager renewable energy developers.”The strongest parameter in favour of India was value chain, while lowerthan- expected investment continues to be the weak link.As solar energy becomes more costcompetitive in emerging markets, here is an expected surge of investment and capacity-building in Asian countries, especially China and India, the report noted.Last year, India added 5GW of clean energy generation capacity.Madhya Pradesh scored the highest among Indian states on growth rate of clean energy investments. The state's favourable land policy and easy clearances resulted in attracting projects.Gujarat, which was once a haven of clean energy investments, slipped from the top slot due to policy uncertainty and litigation over tariff.The Indian government's goal of providing round-the-clock power to its 1.25 billion citizens has triggered huge interest from investors. The report found that a strong energy minister overseeing coal, power, and new and renewable energy sectors could have a positive influence.Key Indian government policies include quintupling solar target for 2022 to 100 GW under the National Solar Mission and an effort to achieve 20 per cent biofuel content in motor fuels by 2017. The 'Climatescope' assessment finds 10 Indian states with top clean energy activity: Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Gujarat, Uttar Pradesh, Andhra Pradesh, Punjab and West Bengal.