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Solar Power Plant:
Nowadays, renewable energy sector is growing rapidly as demand of the renewable energy services are increasing rapidly that refers the growth in this sector. It is found that various reasons are there behind increasing rapid growth of the renewable energy business such as concern over remaining fossil fuel reserves, import dependence and security of supply, concern about environmental pollution, government support, long term sustainaility and financial incentives (Pearce, 2006). These factors work as driver that supports to the rapid growth of the industry in the competitive marketplace. It also attracts to the firms to start and run their business in the industry.
At the same time, it is also argued that requirement of financial incentives or high cost to start business in the industry distracts the firms to enter in the industry. On the other hand, technological advancement also works as initiator that enhances chances of business growth in the renewable energy industry. It is because technological advancement cuts the costs of the firms to produce energy products and services for the customers. Renewable power needs lot of subsidy and high amount of money to make the business viable in the competitive environment. Still, there is requirement of developing technology to produce energy and provide it at less cost.
In addition, it is also stated in the article "Renewable energy and its impact on the environment" that renewable power has become a commercially viable solution for different countries such as India. It is because renewable power is seen as a green activist agenda that is aimed to address climate changes rather than mainstream, commercially viable solutions (Pearce, 2006). There are various reasons that sustains to the starting business in Indian market in this sector. Priority of this is related with the high cost of fossil fuel that is increasing rapidly. Similarly, coal is imported in India from other countries to meet out the energy demand of the country and to maintain sustainable economic growth (Hester & Harrison, 2003).
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