Policy Review
A consortium of key stakeholders, including manufacturers, banks, financial institutions, and project developers, will commit $386 billion to India's renewable energy sector by 2030. This staggering figure, announced at the Re-Invest Summit, is a crucial step towards India's ambitious goal of installing 500 GW of renewable energy by 2030, with a combined public-private commitment reaching 750 GW. This significant investment not only underscores the immense potential of India's renewable energy sector but also instils a sense of optimism for a brighter, more sustainable future.
In response to the escalating energy demand, India has been implementing strategies to meet them. India has set out to triple its installed renewable capacity by 2030 as part of its green economy objective. The capacity has grown significantly, about 33-fold since 2014. However, even though India is the fourth largest producer of renewable energy globally, it faces several hurdles that need to be overcome before reaching the ambitious targets. It's important to note that some of the targets, such as the installation of 100 GW of solar power, were not met in 2022. The government's support is crucial in meeting these targets and avoiding such setbacks, highlighting the need for a collaborative approach.
India's Ministry of New and Renewable Energy aims to install 50 GW of capacity every year until 2028. However, this goal is troubled by infrastructural constraints (particularly raw materials and land availability). According to the Council on Energy Environment and Water (CEEW), India might have to use about 6% of its landmass for complete power generation by the year 2100. Similarly, another major challenge is the installation of rooftop solar systems, which remains limited and slow. The Pradhan Mantri Suryodaya Yojana (PMSY) remains an excellent strategy for promoting solar power installation in one crore households. But the issue here is that it has to be an MNRE-approved vendor, and the installation cost remains very high, making this particular switch extremely hard for many consumers. Also, the inconsistent nature of renewable energy support makes overall power grid management difficult.
To continue its growth and meet the country's renewable energy goals, urgent policy reforms and international collaborations are crucial. This includes simpler approval processes in terms of land acquisitions, vendor certification for fast-tracking renewable projects. Also, other solutions such as accessible subsidies or tax breaks, which includes financial incentives, have the potential to accelerate rooftop solar installations. International partnerships and financial collaboration, especially with countries like Denmark and Germany, which hold excellent expertise in renewable technology, can help increase the innovation potential of India. Furthermore, institutions like the World Bank can help waive the much-needed funding to accelerate growth. Also, collaborations with public-private partners are key, as the government can tie with private entities to develop fund mechanisms, establish new technologies, and infrastructure, allowing for faster growth.
BY SAHIMA GUPTA