India faces weak renewable energy investments

But only in the short-term.

Professional services firm Deloitte Touche Tohmatsu Ltd or Deloitte also said in a report that global investments in renewable energy sector is set to continue to decline in the short term.

Deloitte said there is a short-term setback in renewable energy investments in India, which mirrors the global trend. It blamed this on the lack of implementation of Renewable Purchase Obligation by the distribution utilities and designated consumers.

Indian RE companies also have to contend with a slowdown in the wind sector due to removal of Accelerated Depreciation and confusion regarding generation based incentive.

Funding for RE projects worldwide pales in comparison to that for fossil fuels. The latter received almost twice the amount of government-funded support than the total amount of public and private sector investment in renewable energy in 2012.

This means a total of US$523 billion in subsidies provided worldwide in contrast to the US$269 billion of total investment in renewable energy in 2012.

The report, however, noted that the prospects for global renewable energy industry would be attractive in the long term as technology improves and costs fall.