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Synopsis: Regular policy interventions by the government, an investment push and fiscal stimuli over the years have helped India emerge as a global front runner in the clean energy ecosystem.
Introduction
Despite the covid pandemic, steady growth has helped India cross the 100-gigawatt (GW) target of installed capacity. Today, we stand 4th in the world in terms of installed renewables capacity (fifth in solar and fourth in wind).
What is the reason behind growth of renewable energy sector in India?
Dedicated efforts by the government: India had set up the ministry of non-conventional energy sources in 1992 and renamed it ministry of new and renewable energy (MNRE) in 2006.
Policy reforms: such as transparent bidding, waiving of inter-state transmission system charges and losses for the inter-state sale of solar and wind power for projects, and creating renewable purchase obligations. Also, government has given ‘must-run’ status to renewable energy projects, crafting liquidity packages for distribution companies.
Global-scale initiatives: such as setting up of the International Solar Alliance on the side-lines of the Paris Climate Conference along with ambitious target of achieving 450GW of renewable energy capacity by 2030.
Energy ecosystem potential : Estimates suggest India has over 1,050GW of renewables potential in wind and solar power alone, with wind potential at 300GW and solar at 750GW.
Newer means of power generation such as floating solar and offshore wind projects have been introduced, storage-based systems to provide round-the-clock energy are coming into play.
Efforts to digitize power grid are also underway. Battery costs have been falling consistently. Bloomberg estimates that it will fall by 8% every year to reach $60 by 2030.
Grid connectivity: New renewable capacity can ensure 100% renewable energy generation for stable power to the grid. ReNew Power currently has a project under development that envisages the use of wind, solar and batteries for the stable supply of renewable energy.
How India can ensure development in renewable energy sector?
Foster the development of an end-to-end clean energy ecosystem: it will help India to become a global champion.
Creating demand and providing supportive policies such as wind equipment-making and electrolyzer and fuel-cell manufacturing. According to the International Labour Organization, around 330,000 new jobs could be created in the renewables sector by 2022 and more than 24 million new jobs by 2030.
Source: This post is based on the article “Clean energy prospects beyond the 100GW milestone” published in Livemint on 17th September 2021.
