Accelerating Clean Energy Markets in India

India is experiencing strong economic growth, which has significant implications for greenhouse gas emissions, energy security, and equitable access to energy. The Government of India is keenly aware of these challenges and is trying to move toward a stable and sustainable mix of energy sources. By 2030, India hopes to generate 25 percent of its electric power capacity through renewable energy, but the current business and policy environment is not attracting the private sector investment needed to transform the energy mix on the scale required. In 2007, only about 1.9% percent of the US$14.2 billion private equity investments in Indian-based companies was in the clean energy sector.

To address these challenges in India’s energy sector, the Accelerating Clean Energy Markets in India initiative will achieve the following goals:

Goals

By 2010, Accelerating Clean Energy Markets in India will:

• Leverage at least US$125 million in committed investment to renewable energy and energy-efficiency services.

• Encourage investment in at least twenty small and medium enterprises (SMEs) by leveraging the financial power of our investor networks and the collective skill of enterprise development networks.

• Collaborate to pilot one or more new financing mechanisms with the potential to achieve significant scale to create renewable and efficient energy solutions for underserved rural and urban markets.

Local Investment Capacity Building

WRI will accelerate the growth of clean energy markets in India through its comprehensive Local Investment Capacity Building strategy. Our strategy for local investment capacity building has three components:

1. Engage our India-based Investor Network and Steering Committee in order to leverage investment in renewable energy technologies and services in India.

2. Work with local partners to build a steady stream of investor-ready clean energy enterprises.

3. Provide analytic support on priority areas for financing innovation to create an environment conducive to increasing private sector investment in clean energy markets.