Look beyond subsidies, investors told

Look beyond subsidies, investors told

 
Speaking at Global Energy 2009 on Monday, Hiren Shah, Head of Business Strategy at Global Wind Power Limited, said that the number of wind power installations had decreased last year, as the investments in the wind energy sector was driven by people who were interested in return on investments and the need to save on taxes, rather than any genuine interest in renewable technologies.

With the financial crisis, the investments also dwindled. “The reality is that these investors would happily invest in fossil fuels, if that would guarantee them any good return on investment and the situation will continue as long as tax incentives play a role,” he said.

He remarked that incentives would not continue forever and there was already a proposal by the Central Electricity Regulatory Commission to do away with tax write offs on investment in renewable energy and instead have a system, where the incentives would be directly connected to the amount of energy that was generated.

“It is a good policy. Investors have to understand that the benefits will not be provided for ever. They should innovate and build businesses without the Government’s help and try to compete by reducing the cost and this has to be done in the next five to six years,” he advised.

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