The power sector, which has embarked on ambitious capacity addition plans, requires an estimated $15 billion investment for energy efficiency initiatives, Power Minister Sushil Kumar Shinde has told US investors.
Asking the US investors to make investment in the growing Indian power sector, Shinde said there is a tremendous opportunities for foreign energy service companies.
"...It is estimated that investment amount of $15 billion will be required to be made for energy efficiency initiative in India," Shinde told US investors this week.
According to an official statement, Shinde, who is on a week-long trip to the US, said tremendous opportunities exist for "foreign ESCOs operating either independently or in joint ventures for taking up energy efficiency projects..."
There are about 37 Energy Service Companies (ESCOs) that have been accredited by the Bureau of Energy Efficiency (BEE).
To improve the confidence of financial institutions in the domestic power sector, Shinde said a robust energy audit system has been created.
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India has an installed power generation capacity of over 1,81,000 MW.
Nearly 1,00,000 MW is expected to be added in the 12th Five-Year Plan (2012-17) and that would need strong support from the private sector, Shinde said.
According to the minister, the hydro sector has a potential of about 1,50,000 MW and out of that, only 30,000 MW has been harnessed.
"The remaining capacity needs to be developed which provides the investors an opportunity," he added.