| Introduction: Contextual introduction. Body: Explain what lessons India can take from its hydro-carbon policies, in transition to a self-reliant clean energy system. Conclusion: Write a way forward. |
According to the “World Energy Transitions Outlook 2022” report of International Renewable Energy Agency (IRENA), current crisis of high fossil fuel prices, energy security concerns and the urgency of climate change underscores the pressing need to move faster to a clean energy system.
India can take following lessons from its hydro-carbon policies, in transition to a self-reliant clean energy system:
- Clean energy minerals and components are internationally available. Instead of creating high-cost, domestic, clean energy hub dependent upon subsidies, government should strengthen the trading relationship with exporting countries.
- The hydrocarbon resources are located in harsh terrain and complex geology. They were difficult to produce on acommercial basis. The reason is the high cost of drilling and development.
- Process cost, due to land acquisition, erratic supplies of water and power and legal redress, needs to be minimised.
- The country should desist from building a high-cost, domestic, clean energy hub that is forever dependent on subsidies. Like oil, clean energy minerals and components are internationally traded. They can be purchased on the international market.
- Clean energy sector should not take the availability of tech as manufacturing competitiveness. China’s dominance in PV solar cell manufacturing is because, China has been successful to convert raw material into an end product, efficiently.
- India should continue with its two-track policy with China. China is the lowest-cost supplier of clean energy components. One track will put us eye-ball-to-eye-ball on the border, the other should strengthen our trading relationship.
- In case of thePLI scheme for clean energy sector, the incentives offered are small compared to the benefits provided by the US and Europe. Therefore, endeavour should instead be to lower entry barriers, ease business conditions and remove the perception that India offers a high-cost operating environment.
Non combustion based RE power generation technologies have the potential to significantly reduce local and regional air pollution and lower associated health impacts compared to fossil-based power generation.
