Why you should come to India!

Why you should come to India? Why you should invest in the energy and solar market o India? Bob Smith, EVP - Head of International Business and Investor Relations at Mytrah Energy Ltd. can give the answers right away: This is not a subsidy driven market but driven by people who want to buy power for a competitive price. “India doesn’t believe in subsidies and doesn’t need them”, he says. And for him this is the most important message to German and European companies which want to enter the Indian energy market. Second most important message why you should be doing business in India? “Because this is by far the hugest Renewable Energy Market in the world.”

On 11 June 2015 the Indo-German Energy Forum together with its partners has invited to a special event at the Intersolar Europe fair 2015 in Munich. The session provided some answers to the questions surrounding the bold vision of the Indian government to add 100GW solar capacity by 2022. Can it be done? What is the government doing to pave the way for companies who are ready to take the risk of investment? Where does the money come from? Ivan Saha, President of the Indian solar module manufacturer Vikram Solar and member of the Indian business delegation is convinced: “It can be done! Because PV and solar parks also mean energy security for India”. But he is not the only one on the panel who is convinced. “Why German companies should join the market? Because here is demand, a growing market, ambitious targets and good revenues”, says Pranav R. Mehta, Chairman of the National Solar Federation of India. Abhinav Mayank, Vice President of Welspun Energy even wishes for more international competitors on his domestic market. “There is room for everyone, at least for 20 more companies”, he is saying. And he knows, as do others from the Indian business delegation led by the Confederation of Indian Industry (CII), that competition will also help them to grow and get ready for the global market. According to Mr. Popli India is already now among the top 5 global solar markets. Popli is Chairman and Managing Director of the state owned Indian Renewable Energy Development Agency (IREDA).

So what are the challenges of the Indian Energy and Solar market? Also here Bob Smith from Mytrah Energy doesn’t have to think a second: “India is a complicated market place when it comes to business. You need an Indian partner!”. Josef Eichhammer, Vice President of IBC Solar, a German company that is successful in Europe for more than 20 years and present on the Indian market for nearly four years totally agrees on this. “Evacuation is a challenge”, says Abhinav Mayank from Welspun. And all agree that the different rules, regulations and policies of the different states of India are a real challenge especially to new international actors on the scene -one more argument to find the right Indian partner. Following Mr. Popli from IREDA financing is no challenge anymore as the financial market for financing solar in India has drastically changed for the better within the last three to four years. Before, many challenges made it difficult for project developers to get a credit from a commercial bank, but this has changed now, also due to the policies and announcements of the government.

And who gives money to IREDA? Frank Determann, Senior Project Manager at KFW, answers this question at least on behalf of the German Development Bank. So far, IREDA and KFW have been implementing four lines of credit with a total loan amount of EUR 331 million. In India KFW is focusing especially on RE. More than one billion euro KFW has committed to India last year to establish so called Green Energy Corridors, which should erase the evacuation challenge mentioned by Abhinav Mayank from Welspun. Most important for KFW, the Indian end consumer will benefit from it as sustainability and direct impact are major goals of the development bank. And Abhinav Mayank is not waiting long to get in direct contact with his future competitors or maybe business partners as his company is hosting the networking reception after the session together with the Consulate General of India in Munich.

The conference: “INDIA’S 100GW SOLAR TARGET - POLICY, BUISNESS OPPORTUNITIES & FINANCE” at 11 June 2015 at Intersolar Europe in Munich was jointly organized by: Consulate General of India, Indian Renewable Energy Development Agency (IREDA), Indo- German Energy Forum (IGEF), Confederation of Indian Industry (CII) and Intersolar Europe.