From Egypt to Argentina, countries are making plans to generate power from alternative energy sources. A lightning rod for activity, the Paris Climate Change Conference in 2015 prompted countries to take a hard look at their power supplies and to map out practical alternatives. India has done so and has plans to provide approximately 60% of its country’s electrical needs by way of alternative sources by the year 2027. Part of this plan is to provide alternative energy via wind farms. And it’s not only the environment that will benefit from such a focus. Investors across the supply chain can stand to profit if they get into the right position early in the game. It’s estimated that the Indian power sector as a whole stands to benefit with investments in excess of USD $220 billion over the next five years.

India Ready for Renewable Energy Investment

The landscape is ripe for opportunity. Government plans are in the works to establish monies to protect payments to renewable investors as well as traditional power supply providers. Additionally, funds are being earmarked with the aim of providing investment buttressing for overextended power assets and alternative energy projects in India. Government leaders are also actively seeking ways to create an investment-friendly environment by considering tax breaks for certain renewable energy investment projects in India.

In addition to government support, financial opportunities exist. In third quarter 2016, the European Investment Bank, announced funding opportunities for two renewable energy wind farms in India. The first is a project involving a 100 MW wind farm in Andhra Pradesh with the aim to replace electricity generated from fossil fuels. The second project includes the development of a wind farm in Ratlam in Madhya Pradesh with the goal of 100 MW.

Investors, too, have not been shy about showing their support for renewable energy in India. Softbank of Japan plans to invest approximately USD $20 billion in a joint venture with Foxconn of Taiwan and Bharti Enterprises of India. French company EDF is projected to invest about USD $2 billion, and Indian company Adani opened the doors of the globe’s largest solar plant in Tamil Nadu in 2016. The International Finance Corporation, an investment division of the World Bank, plans to invest heavily in Hero Future Energies Limited, an investment that will be funneled toward development of both solar and wind projects.

Supply Chain Opportunities Available in India

With projects popping up across the country, supply chain opportunities exist. Raw materials in the form of steel, copper, aluminum, fiberglass, carbon filament, carbon fiber and more are needed to keep projects running smoothly. Additionally, items such as rotors, blades, nacelle controls, generators, tower components and electronic elements are in demand as each state-of-the-art wind turbine is comprised of roughly 8,000 parts. Auxiliary services are also vital to the setup and maintenance of renewable energy investments in India. These include such things as site investigation, engineering services, site development, construction support, technology expertise and materials transportation.

Cornfield & Partners can help you look into renewable energy and supply chain opportunities in India. Contact info@cornfieldpartners.com or call us on +44 (0) 20 7692 0873 to get started on understanding the options available to you.

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