1. Major Challenges In Renewable Energy Sources:

1. Buyer’s risk: This is the risk that the buyer will not meet its contractual obligations or that payment will be late or incomplete. .

2. Insufficient infrastructure: Inefficiencies due to a lack of infrastructure for power generation and distribution are major obstacles to foreign investment.

3. Lack of financial intermediaries: Another obstacle for Indian institutional investors is the lack of financial intermediaries in the renewable energy sector.

4. Limited understanding: Renewable energy is a non-traditional investment destination and potential investors are often cautious due to their limited understanding of the sector.

2.Prospects of Renewable Energy Sources:

India stands among top 5 countries in the world in terms of Renewable Energy.

The installed base is 9% of total power generation capacity and contributes 3% to the electricity mix

The national action plan on climate change in 2008 is identified as Solar energy development

In Nov 2009 Gol approved national solar mission which aims to enable 20000 MW to be deployed in india by 2022