Abu Dhabi: There are huge investment opportunities for companies from the UAE to invest in India’s renewable energy sector, India’s renewable energy minister said in Abu Dhabi on Wednesday.

“We are targeting 175 gigawatts of renewable energy by 2022 and there are a plenty of opportunities for firms to invest in India. We have put in place a transparent mechanism to attract investment,” said Raj Kumar Singh, Minister of State for Power and New and Renewable energy, Government of India, speaking to Gulf News.

“We hold bids based on tariffs offered. Developers come and they set up the solar park and we buy energy from them. We didn’t have to put any capital.”

Singh was speaking on the sidelines of World Future Energy Summit in Abu Dhabi.

Asked whether the country will achieve the target, the minister said that they would easily surpass the target and even reach 200 gigawatts by 2022.

“It is the sunrise sector and gives good returns. Business will grow profitable with each year and running costs are near zero. Pension funds from all over the world are currently investing in India’s renewable energy sector. This is where the growth is.”

A wholly-owned subsidiary of Abu Dhabi Investment Authority (Adia) recently signed an investment agreement worth $1 billion (Dh3.67 billion) with the National Investment and Infrastructure Fund (NIIF), which is trying to create a long-term value for domestic and international investors seeking to invest in energy, transportation, housing, water, waste management and other infrastructure related sectors in India.

Currently renewable energy represents less than 10 per cent of India’s total energy mix and is expected to go up to 20 per cent once the 175 gigawatts is achieved, according to businessmen investing in India’s energy sector.

“Investment opportunities of at least $10 billion are available in India’s renewable energy sector. There is a transparent bidding process and the demand for energy is going up in India,” said Kapil Kumar Nirmal, vice-president of international business development in Amplus Energy Solutions, which is investing in India.

A senior official from Masdar also told Gulf News on Wednesday that they are keen to expand to the Indian market and are studying various options for investment.