India has achieved commendable progress in the renewable power generation sector, says Santosh Kamath, Partner of KPMG India.
“It has been a good journey on the renewable energy side; electric mobility is still early days in the country, but on the renewable power generation front, I think we have done well as a country. We have got about 80 gigawatts of renewable capacity which is roughly 10 percent of our power generation. With the government plans and the way technology costs have come down I do expect that we could do somewhere in the region of 20-25 percent of our power generation from renewables in about 5-6 years from now,” he told CNBC-TV18.
Talking about discoms' financial situation, he said, “The central government has done what it had to do, which is to come out with large tenders for renewable projects, trying to mitigate some of the risks like payment security and so on. If anything has to be done it is at the state level, which is the discoms particularly. The financial situation of the discoms is causing a lot of concern and if anything will prevent the rise of renewables or new technology I would say it would be the financial positions of the discoms.”
In the last five years, the country attracted over $40 billion domestic and international capital into the sector. "Going forward we need multiple times of that because in the next 5 years we will almost double the renewable power generation capacity," he added.