EY lists India as world’s most attractive solar market


From pv magazine India

London-based Ernst & Young has once again crowned India as the most attractive destination for PV investment, followed by China and the United States. Germany, Australia, Israel, France, Egypt, Spain, and Brazil, rounded out EY’s top 10 nations for PV investment, in that order.

For overall renewables investment, the United States retained the top position. It had almost 360 GW of solar and 258 GW of standalone battery storage in queues. Germany overtook China, targeting 80% renewables by 2030. India moved up to sixth place, as it aims to become a major producer and exporter of green hydrogen.

India’s renewables industry, especially solar, is rising due to ambitious government targets. The nation targets 500 GW of renewables capacity by 2030, including around 280 GW from solar, and net-zero emissions by 2070. India is also focused on producing five million metric tonnes of green hydrogen by 2030.

The expansion of the green hydrogen industry will drive demand for renewable energy. According to EY, India has the fastest rate of renewable electricity growth among major economies, with renewables accounting for around 42.5% of installed power capacity as of February 2023.

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India promotes domestic manufacturing of components like cells and modules to meet its renewable energy goals. It has reached a cell and module manufacturing capacity of around 44 GW per year as of early 2023.

“India is making significant efforts to establish itself as an attractive and investible market for renewable energy,” said Somesh Kumar, EY India power and utilities leader. “The Indian government has been implementing various policies and initiatives to promote renewable energy development and attract both domestic and foreign investments.”

The biannual RECAI ranks the world’s top 40 markets on the attractiveness of their renewable energy investment and deployment opportunities. It considers criteria like the magnitude of the development pipeline, reflecting the absolute size of the renewable investment opportunity. The index is normalized with the gross domestic product to assess markets performing above expectations for their economic size.

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