India: New Delhi, Hyderabad, and Mumbai: September 7-12, 2008
India is experiencing dramatic economic growth and a rapidly increasing demand for energy. Currently the world’s fourth largest energy consumer, India will be the third-largest by 2030. Both India’s cities and villages lack adequate energy; there is therefore a need to add on-grid and off-grid power generation. The Government of India has specified renewable energy in its development plans and has developed numerous government incentives. The federal government has set a goal of electrifying 18,000 remote villages and meeting 10 percent of its energy demand with clean energy by 2012. The Indian market for clean energy is estimated at $600 million with an annual growth rate of 25 percent. The current 8,000 MW of installed capacity is expected to reach 20,000 MW by 2012. India is currently experiencing annual growth of energy demand of 9 percent a year.
The clean energy market in India offers strong business prospects to U.S. companies, particularly in solar, biomass, gasification, wind, hydro, and solid and industrial waste-to-energy. The market for energy efficiency is estimated to be about $2 billion, concentrated especially in energy-intensive industries such as cement, aluminum, fertilizers, pulp and paper, petrochemicals, and steel.
New Delhi, India’s capital, is not only the second largest city, but also the second-most favored foreign direct investment (FDI) destination in the country. The total Indian market for these goods and services is expected to grow to $9 billion in 2010. New Delhi is also the principal end-user of clean technology, fulfilling the Government of India’s (GOI) directives on nation-wide deployment of environmental equipment and services. The size of New Delhi’s need for energy and high pollution makes it an attractive market for large investments in clean technology projects, which is a key national priority.
Hyderabad is the capital of the state of Andhra Pradesh and has a population of 7 million. Clean energy companies visiting Andhra Pradesh will find potential partners in the city’s numerous energy intensive sectors including cement, steel, power plants, and defense industries.
The state agency, Non-Conventional Energy Development Corporation of Andhra Pradesh Ltd., implements numerous programs to support clean energy. Hyderabad is also the epicenter for the Green Business Building push in India. The Confederation of Indian Industry‘s Green Business Center is located in Hyderabad. This showcase for Clean Energy enjoys support from ongoing U.S.-India partnerships operated by USAID and the State Government of Andhra Pradesh.
The Environment Protection Agency of India (EPTRI) is also located in Hyderabad, providing comprehensive training and research in environmental issues and concerns. The increasing population density and sustained efforts to improve the standard of living have created tremendous pressure on the environment. Approximately 10 percent of the geographical area and 19 percent of the cultivatable area of Andhra Pradesh requires environmental cleanup.
Mumbai (formerly Bombay) is the capital of the state of Maharashtra and is home to over 16 million residents. As India’s most industrialized state, Maharashtra leads India in energy consumption, produces sizeable quantities of pollutants, and has experienced frequent energy blackouts. A 5,000 MW energy shortfall has spurred innovative programs to promote clean energy. In fact, the Maharashtra Energy Development Agency is actively promoting additional power from solar, wind, biogas, and small hydro sources. One of India’s premier research institutes, the Indian Institute of Technology Bombay, operates an active Energy Systems Engineering program with a particular focus on sustainable energy.
Small-scale industrial firms dominate the environmental technologies sector but there are a few engineering companies offering services and equipment as part of turnkey consulting services. This sector is growing at 10-12 percent annually. There is a growing demand for the technologies for solid waste, water and wastewater treatment, vehicular pollution and air pollution. Some of the advanced equipment required for treatment of biomedical waste is not manufactured domestically and must be imported – an opportunity for U.S. exporters. Imports constitute nearly 40 percent of the total market.