In the first half of 2022, solar generation helped India save $4.2 billion in fuel costs and 19.4 million tonnes of coal that would have, otherwise, further stressed an already strained domestic supply, as per a report released on Thursday.
Prepared by energy think tank Ember, the Centre for Research on Energy and Clean Air and the Institute for Energy Economics and Financial Analysis, the report said that five of the top 10 economies with solar capacity are now within Asia, including India, China, Japan, South Korea and Vietnam.
The contribution of solar generation in seven key Asian countries — India, China, Japan, South Korea, Vietnam, the Philippines and Thailand -- avoided potential fossil fuel costs of around USD 34 billion from January to June 2022, the report said. This is equivalent to 9 percent of total fossil fuel costs during this period, it added.
"In India, solar generation avoided $4.2 billion in fuel costs in the first half of the year. It also avoided the need for 19.4 million tonnes of coal that would have further stressed an already strained domestic supply," the report stated.
CREA's Southeast Asia Analyst Isabella Suarez said Asian countries need to tap into their massive solar potential to rapidly transition away from costly and highly-polluting fossil fuels.
The potential savings from existing solar alone are enormous, and expediting their deployment alongside other clean energy sources such as wind, will be crucial for energy security in the region. While ambitious targets are important, follow through will be the key thing to watch moving forward, she said.
Vibhuti Garg, Director, South Asia at Institute for Energy Economics and Financial Analysis said reliance on imports of coal and gas in the last few months has proven to be expensive and unreliable.
"Transition to renewable energy such as solar can help reduce the overall system costs and also reduce burden to consumers by lowering tariffs. For energy security and economic reasons, it makes sense for India and rest of Asia to redirect investments towards building renewable energy ecosystem," she said.
