Global investments in renewable energy sector may decline, says Deloitte report

NEW DELHI (Scrap Monster) : The research report published by renowned consultancy major Deloitte indicates that the investments in renewable energy sector may continue to decline in the short term.

The report states that India also is likely to follow the global trend. The investments in Indian renewable energy sector will remain subdued during the near future. According to a senior Deloitte official, the short term setback is mainly attributed to the lack of implementation of Renewable Purchase Obligation (RPO) by the distribution utilities and designated consumers.

The report identifies that the slowdown, particularly in the wind sector is due to removal of Accelerated Depreciation and confusion regarding generation based incentive.

On the other hand, the long term prospects of global renewable energy industry look attractive though.This may take some time for technologies to evolve to cut down the costs. A good number of world countries have defined renewable energy targets. The demand for clean energy is also on the increase.