Global investments into the energy infrastructure space estimated at USD 36 trillion, representing 0.6 per cent of the cumulative GDP over the next few decades, will provide a huge opportunity for the private sector to scale up new technologies and meet the emerging challenge of climate change.
The private sector will need to look at the opportunities, Dr Ernest Moniz, Secretary, U.S. Department of Energy, said.
"They need to focus on the opportunities rather than the limits as they explore initiatives in clean energy transformation," he added.
He was speaking at a Conference on "Financing Renewable and Energy Efficient Technologies" organized by the Confederation of Indian Industry in partnership with Energy Cooperation Programme (ECP) coinciding with the Indo-US Energy Dialogue in the Capital on Tuesday.
Emphasising on the critical role of financial support, Moniz said, "Clean energy financing is being elevated through multilateral agencies in the U.S. till private capital moves off the sidelines."
This support is critical for Clean Energy to gain momentum.
Echoing a similar train of thought, Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, said, "subsidies need to be explicit and it is important to distinguish between subsidy and finance. RE projects need to have a revenue model that can be financed and then we can bend over backwards to ease the regulatory restriction to address the externalities in renewable energy financing."
Highlighting two key trends in the course of his address, Dr Moniz said, "The notion that the Clean Technology Revolution remains a distant goal is changing as cost reductions in clean technologies (photovoltaic, LED and wind) continue to advance at a rapid pace. A shift in the public attitude towards the need for prudent action to pursue the Clean Energy Agenda is also being witnessed. This is important to address the risks of climate change."
Speaking on the progress the role of renewable energy,Banmali Agrawala, member, CII National Council and CEO and President, GE South Asia, said: "India as a country has made substantial progress in the area of renewable energy and energy efficiency. Today, installed renewable energy capacity at 30 GW accounts for 13 per cent of the fuel mix and is about 5-6 per cent in energy terms. To further strengthen the entire base of renewable energy in the country, there is a need to move from capacity addition to energy and explore solutions in the area of grid integration, energy storage and energy efficiency on the demand side. Funds also need to be provided to the manufacturing sector to enable them to innovate new technologies"
Stressing the importance of financing, he said, "Financing is the core of renewable energy and energy efficiency. While the market has responded well to the commercial interventions that have been put in place, financial institutions in the country need to respond more aggressively and should be willing to go that extra step.