According to the head of International Renewable Energy Agency (IRENA) to sustain the strong push towards renewable energy especially solar, India needs to strengthen its grid infrastructure.
The IRENA Director-General Adnan Z Amin has said that the main constraint currently in India is the grid and there is a huge upsurge in investment. The target set for renewable energy in India is 175 GW by 2022. The 175 GW of renewable energy target includes 100 GW of solar.
He noted that many companies are retooling the production capabilities and investment is not a constraint.
The director told reporters after delivering a keynote address at the campaign launch of Singapore International Energy Week to be held this week that India has a brighter future and he also reiterates his belief in the renewable energy sector in India. He also said that the pace is high.
He recommended that an investment climate is required that should be supported by the government as this will bring the cost of finance down,
While listing out the risks related to currency and policy, the director said that One of the other problems in addition to the grid is that there is a lot of risks priced into the cost of capital that makes it more expensive than other places.