Hike in U.S tariffs a blessing in disguise for Indias renewable power sector

The hike in tariffs was a “blessing in disguise” for India’s renewable power sector, as it could assist limit exports, set off scale of progress in native markets, carry down the price of manufacturing and in flip make the business globally aggressive, mentioned Pinaki Bhattacharyya, co-chair, FICCI Renewable Energy CEOs Committee.

“The latest tariff enhance by the usgovernment is a blessing in disguise for the RE sector. The Indian authorities has launched many schemes and incentives to encourage manufacturing of cells, modules and likewise wind generators for the native market. But many manufactures are actually exporting them and this isn’t within the curiosity of the nation,” Mr. Bhattacharyya remarked, whereas talking to The Hindu on the sidelines of a seminar on Renewable Energy Transition for Commercial and Industrial Consumers within the Southern Region, held in Bengaluru on Wednesday.

The U.S. tariffs will discourage these exports and encourage Indian producers of cells, modules and wind generators and many others. to deal with native markets and herald scale, maturity and skill to compete globally, he anticipated.

He mentioned, underneath the brand new U.S. tariff regime, the touchdown value of those merchandise can be a lot increased within the U.S, making exports unviable for Indian producers.

At the identical time, he mentioned, energy turbines in India weren’t getting cells and modules from different markets they usually weren’t allowed to import these from China due to sure reactions.

“The authorities ought to take a balanced view to stabilise the market surroundings and progress. It also needs to introduce some restrictions on exports, not simply on imports,’‘ commented Mr. Bhattacharyya, additionally the founder, CEO, and managing director, AMPIN Energy Transition, a renewable power transition firm.

Since 2023, the Asia Development Bank has put aside $100 billion in direction of investments within the renewable power sector within the Asia Pacific area, in accordance with an official of the financial institution.

In 2024 alone, the area captured $8 billion from ADB and apparently, India alone had a share of as much as $5 billion, indicating a increase in India’s RE sector.