Renewable energy heats up in India

A $20 billion joint venture aimed at Indian renewable energy is the latest sign of fresh investment in the sector as Prime Minister Narendra Modi seeks to aggressively boost output.

SoftBank, Bharti Enterprises and Taiwan’s Foxconn Technologyrecently announced the creation of a joint venture firm called SBG Cleantech to develop alternative energy plants across India.

The move comes after India’s cabinet approved a drastic increase in capacity targets. By 2022, Modi wants solar capacity at 100 gigawatts (GW), a fivefold increase from the previous target of 20GW. That averages to around 14GW a year, more than the amount of solar power added in the U.S. and China last year.

While the government has yet to explain how it plans to achieve such ambitious targets, overseas investment is expected to play an essential role.

“The Indian government with Modi on board has taken aggressive steps to accelerate renewable energy investment from foreign companies, and we anticipate more going forward,” said Holly Hu, senior analyst at IHS Technology. Read More…