A study was done some time back and it turns out that solar projects are set to be concentrated in the USA, India and Italy. About 70% of the respondents pinpointed US as a geographic focus for new acquisitions; a further third opted for Italy and India. In case of India it is the plethora of government incentives, which have been implemented to support regional development that makes it an attractive destination. “We may see Asian players entering downstream by snapping up one or two developers. Asian solar manufacturers looking for markets for their solar panels will be interested.”
Siobhan Smyth comments that, “With India it is a combination of factors, there is a portfolio standard on state by state basis. Developers have the ability to get PPAs due to utility obligations. Then there are the Generation Based Incentive (GBI) and tax depreciation incentives. You are looking at 15-20 percent returns depending on the state you look at and the type of assets you are buying.”
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