Boom time for India’s renewable energy sector
e Modi government has been somewhat on the back foot defending demonetisation. Amid the din of Twitter and a TV war of words, significant achievements that could be at the forefront of a discourse of the establishment, have been lost. One such arena where India is making rapid progress, courtesy the commitment of Modi, has been renewable energy.
The cost of producing alternate energy resources in India has tumbled to levels that they can effectively compete with conventional power generated by polluting coal-fired plants, the main source of electricity in the country. What is more, tariffs are quoting the new low rates without government subsidies and more fiscal support of consequence, which means that clean energy in India has come of age, become a sustainable business model.
A portion of the credit needs to be assigned to the Modi government that has played a stellar role in ensuring the flow of investments into renewable power, while also building a fairly transparent paradigm for companies to function. India, the world’s third-largest greenhouse gas emitter, has set a target of raising its renewable energy generation to 175 gigawatts by 2022, around five times current levels. With more than 200 million people in India still without access to electricity, alternate non-grid sources of power can play a critical role in plugging the supply gaps.