As per the latest IMF predictions India is now currently the
fastest growing economies of the World and is poised to retain the newly
acquired status outpacing China. A
renewed boost to the growth progression following the implementation of a new
set of chartered strategies like faster clearance of projects, better
infrastructure, promoting ease of doing business offers a promise of sustained
economic activity. Rapid economic growth, better standard of living and
increased manufacturing activity will subsequently increase energy
requirements. Currently India is the world’s third largest energy consuming
economy after China and US is largely an energy deficit. Burgeoning energy
needs has brought the issue of energy security to the forefront. So far the
primary sources of energy consumption in India are Coal, Oil and natural gas
accounting for more than 90%. Currently India consumes around 4.4% of World’s
energy resources. Fossil fuels account for 70% of India’s electricity
generation of which 78% of India’s petroleum and 25% of natural gas consumption
is met by imports. It is estimated that the import dependency is bound to
increase to 90% by 2030. The burgeoning energy demands and the limited fossil
fuel reserves has significant implications on the financial health of the
country. Prolonged unrest and political upheavals in the Middle East, volatile
oil prices has raised the stakes further. India’s Oil and natural gas industry
thus far failed to make substantial impact in easing domestic energy deficit
due to a variety of reasons. Since the inception of the New Exploration License
Policy (NELP) in 1999, 60 discoveries were made of which 51 were gas
discoveries but merely two entered production phase.
Government of India in a bid to make the country energy
reliant has unveiled an ambitious plan that aims to augment electricity
generation from the renewable sources which besides being environmentally
compliant can significantly alleviate India’s dependency on oil imports. As of
March 2015, 7% of the electricity produced in India comes from renewable energy
sources. (GOI, CEA Statistics). Under the agenda of stepping up renewable
energy capacity by 2020, inaugurated by Piyush Goyal, India has set a target of
achieving 175 GW of renewable energy. This includes 100 GW Solar Energy, 60 GW
of Wind Energy, 10 GW of Small hydro power and 5 GW of bio-mass based power.
Being the third largest emitter of greenhouse gases after US and China, India
was under scanner to elucidate its initiatives towards shared global
responsibility. India has pledged to improve emissions intensity of its GDP by
33-35% by 2030 below 2005 levels as a part of its Intended Nationally
Determined Contributions (INDCs).
Modi during his election rallies reinforced his commitment
for an energy revolution by harnessing the solar and wind energies. After
assuming power, NDA government consistently pursued the agenda of promoting the
renewable energy. To foster India’s green initiative, Modi launched an international
solar alliance roping in over 120 countries at the Paris COP 21 Climate Summit
with France President Francois Hollande. The alliance hailed as a game-changer
by the environmentalists include several tropical countries that have poor
access to electricity. Modi who as a Chief Minister of Gujrat, spearheaded
solar energy production of 900MW under the
new solar alliance, appealed the International Agency for Solar
Technologies and Applications (IASTA) to help in spreading cheap solar technology
across the globe. The conglomerate evolved following the supported extended by rich
nations like US, China and France who pledged to help poor countries in
auguring the process of clean energy generation. The alliance which includes
Latin American and African countries through focused investment and technology
sharing aims to harness the solar energy.
India has set a gigantic task of stepping up the solar energy
generation from the existing 4GW to 100 GW by 2020. Energy experts belief that
1 GW power is enough for 7,00,000 to 7,50,000 homes. Thus 100 GW has a
potential of fulfilling the power needs of 7.5 crore Indian households. India
has committed to invest $30 million towards Solar alliance with an investment
of $400 million with Delhi as its headquarters. While receiving a thumbs up
from international community for its noble initiative India is criticized for
its fossil-fuel grid expansion. The Indian Solar Loan Program supported by
United Nations Environment Program won prestigious Energy Globe World award for
sustainability in helping to establish financial program for solar home power
systems. NDA government was indeed successful in securing pledges from 213
companies to set up renewable energy capacity of 266GW in the next five years.
So far the largest commitment for Solar power generation is from Sun Edison Inc
for 15,200 MW and ReNEW Power Ventures Pvt Ltd for 11,500MW. Earlier renewable
power generation has been part of corporate social responsibility but now
government is seriously committed and has charted out future plans for
utilization of green power sources. Currently India’s crude oil import bill
which is around $150 billion is projected to touch $300 billion by 2030.
Simultaneously, competitive tariff-bids, cheaper equipment and government
subsidies ensured that solar tariff remained more affordable.
India is now hugely investing in tapping wind power and has
fifth largest installed capacity in the World. Wind power generates 1.6% of the
country’s power. India with its enviable coastline is indeed ideal for huge
wind power installations. Renewable energy is fast becoming mainstream source
of energy production. Besides, the phenomenal technological advancement
provided the needed impetus to augur the power generation from green sources. Modi
government has now announced tenders for the auction of the sea blocks for off
shore wind projects identified by National Institute of Wind Energy (NIWE). Per
capita electricity consumption of India is one-fourth the World’s average and
currently 300 million Indians don’t have access to power. Efforts are on to
make the renewable energy generation more affordable. Though India is endowed
with rich water resources, tapping of hydroelectric power is abysmally poor. In
part, the woes of hydroelectricity is exacerbated by delayed environmental
approvals, mandatory clearances, land acquisitions, rehabilitation of the
displaced people. While international community had serious reservations about
India’s commitment towards climate change, as a preemptive measure, India
reduced oil subsidies, started imposing taxes on petroleum products, and
introduced carbon tax. India is among one of the few countries that levy carbon
tax on coal. Recently the levies are increased from Rs 100 to 200 per ton.
These finances aid the National Clean Energy Fund. Presently the share of green
energy is 12.25% percent and India aims to stoke it up to 40% by 2022. Clean
energy investments reached $7.9 billion in 2014 making it the seventh largest
clean energy investor in the world. The upswing was clearly steered by the NDA
government, which is planning to start five funds of $ 5 billion each to
promote green energy sources. Of late, plunging oil prices have delayed the
international community’s shift to solar and wind energy. But India has been
consistently pushing the green sources utilization.
Nuclear energy is another important thriving renewable source
of energy in India. India’s ambitions received a major boost of stepping up
nuclear power generation after it sealed civil nuclear agreement with US in
2008. The pact opened up India’s prospects of nuclear commerce as it was not
signatory of Nuclear Non Proliferation Treaty (NPT). India aims to increase nuclear capacity to
63,000 MW by 2032 from 5780 MW. With ratification of the International Atomic
Agency Convention on Supplementary Compensation for Nuclear Damage (CSC) the
final hurdle for setting up nuclear power reactors in India will receive a
major boost. Investments in nuclear power in India were largely deterred after
India adopted a law in 2010 giving the Nuclear Power Corporation of India
Limited (NPCIL) the right to seek damages from suppliers in case of an
accident. Now Indian officials are trying to assuage foreign investors by
setting up insurance pool with a liability cap of $226.16 million. CSC makes
signatories shift liability to the operator and offer access to relief funds.
Recently Russia offered to set up 12 nuclear plants of worth $3 billion each to
India giving the much needed impetus of India’s nuclear power generation. Modi
during his bilateral foreign visits have sealed pacts with Japan, US, France
for technological assistance in setting up nuclear powers and with Australia
and Canada for importing Uranium, the crucial fuel for nuclear power reactors.
Despite, stiff opposition for the nuclear power generation, nuclear energy
remains the most promising enterprise that can quench India’s power appetite.
Efforts are on to rev-up India’s expertise in fast reactors and thorium fuel
reactors to meet growing energy needs. By far, India has set an ambitious
agenda for utilizing the renewable sources and is moving in right direction.
Hope the enterprising ability of India can yield fruits and usher the country
into a realm of green India.
@Copyrights reserved.
No comments:
Post a Comment