Investments in renewable energy sector will be sluggish in the short term globally, including in India, says a report.
Leading consultancy firm Deloitte, in its report, today said that global investments in renewable energy sector is set to continue to decline in the short term.
“This is due to lack of implementation of Renewable Purchase Obligation (RPO) by the distribution utilities and designated consumers,” he said.
“There is a slowdown particularly in the wind sector due to removal of Accelerated Depreciation and confusion regarding generation based incentive,” Mishra added.
However, the report noted that the prospects for global renewable energy industry would be attractive in the long term.
About 118 countries have renewable energy targets in place and the demand for clean energy is also on the rise.
“Global investment into the renewable energy sector is likely to remain subdued in the near time. Yet, over the long term, the sector will be more attractive as technology improves and costs decline,” Deloitte Touche Tohmatsu Ltd Global Leader (Renewable Energy) Jane Allen said.
Meanwhile, fossil fuels received almost twice the amount of government-funded support than the total amount of public and private sector investment in renewable energy in 2012.
“This equates to a total of USD 523 billion in subsidies provided worldwide, in contrast to the USD 269 billion of total investment in renewable energy in 2012,” the report said.