India is 8th in renewable energy index

The country only placed fourth in 2011.

According to the Renewable Energy Country Attractiveness Index from Ernst & Young, the drop was caused by India’s high entry-barriers for foreign investors and the rising cost of financing.

The index said aq high barrier to entry for external investors causes India to score lower than most of its top 10 rivals. Also, bankability is jeopardized by the high cost of financing and significant infrastructure barriers.

The index, however, sees India gaining the hot spot, with its increased focus on renewable energy driving new levels of power sector investment, and aiming to nearly double the amount it generates from renewable sources.

While India’s rating may have slipped, there are significant positives, said the report. India is only behind Belgium in the priority the renewable sector receives.