The photovoltaic panel industry and related exchange traded funds brightened Monday as India ambitiously plans a large-scale shift into solar power that could rival Chinese capacity.
On Monday, the Guggenheim Solar ETF (NYSEArca: TAN) jumped 3.9% while the Market Vectors Solar Energy ETF (NYSEArca: KWT) surged 4.3%. Both TAN and KWT are now testing their short-term, 50-day resistance level. [Solar ETFs: Industry Growth Not Reflected in Market]
India’s Prime Minister Narendra Modi reiterated plans for the country to install as much 100 gigawatts of photovoltaic capacity by 2022 while President Obama stated that the U.S. will “stand ready to speed this advancement with additional financing,” Bloomberg reports.
In comparison, China is currently undergoing a photovoltaic expansion that targets 100 gigawatt capacity by 2020 and currently has 33.4 gigawatts installed.
Arunabha Ghosh, chief executive officer of the Council on Energy, Environment & Water, argues that India’s plans would require $160 billion in funding.
“Whether Modi can achieve the target hinges on funding,” Izumi Kaizuka, manager of the research division for RTS Corp., said in the article. “The pace of solar expansion has tended to be delayed even under the previous goal which was much lower.”
The push toward clean energy would help the emerging market combat growing pollution levels as the country tries to find ways to meet its increasingly higher energy needs without fueling greenhouse gas emissions. India’s emissions are the third highest behind the U.S. and China.