Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday said that the country now needs to move to the next stage of investment and manufacturing in the renewable energy sector.
He said that investment should be done in solar and wind energy installations, and also in creating domestic manufacturing capacity for solar panels.
“I think we need to move now to the next stage of investment and manufacturing. Having sufficient domestic capacity to manufacture solar panels is something which the country can certainly achieve,” said Das while addressing the national council of the Confederation of Indian Industry in a virtual conference.
According to D K Srivastava, chief policy advisor, EY India, there is a clear scope for taking advantage of progressive cost reductions and substituting imports of solar panels from China by creating domestic capacity.
Das said that a major factor driving the shift in energy mix has been the steep fall in generation cost of renewable energy and as a result, renewable power generation technologies have become the least cost option for new capacity creation in almost all parts of the world.