India can emulate California's green energy aggregation model. But for that to happen, the Government must identify the challenges and mitigate them. This begins with the realisation that the present electricity regime is unsustainable
Worsening the plight of the people of Delhi who are already reeling under the power crisis, the Delhi Electricity Regulatory Commission recently increased the power tariff by six per cent. According to reports, this hike is a prelude to an even steeper increase expected to take place in July this year. Though the Government has asked the DERC to review the hike, this state of affairs have become a source of acute discomfort to the Aam Aadmi Party Government in Delhi, which has come to power on the promises of cheap electricity and free water.The present situation clearly shows that amid growing energy scarcity, there is no such thing as cheap electricity.
The city has seen a series of power tariff hikes in the past two years. The tariff was raised by 22 per cent in 2011 followed by five per cent in February 2012. The tariff was again hiked by two per cent in May 2012 and by 26 per cent for domestic consumers in July 2012. The tariff witnessed yet another increase of three per cent in February 2013 and five per cent in August 2013. For a city besieged by tariff hikes, the AAP had the opportunity to bring about a difference by establishing a future smart city whose energy needs were met by a practical and efficient renewable energy master plan. This would have helped the party stay clear of populist and impractical promises and showcased the futuristic ambitions of its leadership.
Delhi and the rest of the country are facing an energy meltdown due to skyrocketing electricity prices, supply crashes and frequent blackouts. Add to this the lack of a cohesive and sustainable plan for generating renewable energy on a large scale, and that makes matters worse. As India continues to depend on fossil fuels for electricity generation, there is a clear dearth of success stories pertaining to sustained use of renewable energy, be it for powering the streetlights of a city or operating the public transport during daytime on solar energy. The world in the meantime has moved on to a much more resilient and sustainable manner of energy generation that is in consonance with its environmental conservation goals.
Unfortunately, India has been unable to observe and learn from the global benchmarks being set by many countries in the innovative generation of renewable energy and its application.
For instance, in the US, solar farms are blooming across California’s deserts and the number of wind turbine installations have increased tremendously. Even as photovoltaic roofs are replacing normal roofs, the population is opting for energy-efficient and energy-responsible modes of transportation. A clean energy rush is transforming California so quickly that nearly a quarter of its electricity now comes from renewable sources, making the State the first to get more than five per cent of its electricity from the sun. With a renewable energy capacity of 21,000 mw, California has set an example of sorts by doubling its wind energy production since 2009, to nearly 6,400 mw in 2014. This is catering to nearly seven percent of the State’s electricity needs.
With a the goal of 33 per cent renewable energy by 2020, California has set a target to cut its greenhouse gas emissions to 40 per cent below the 1990 level within the next 15 years — the most ambitious target in North America. California has been able to achieve this superlative position in renewable energy generation mainly due to a successful combination of favourable geography, innovative policies and businesses that saw the promise in clean energy investments.
India must emulate California’s green energy aggregation model. But for that to happen, the Government must identify the challenges and mitigate them. One of the foremost challenges facing the Indian renewable energy sector is financing — more specifically, the high cost of debt for new projects. Studies indicate that the higher cost and inferior terms of debt in India is instrumental in raising the cost of renewable energy by 24 per cent to 32 per cent compared to similar projects financed in the US or in Europe, for that matter.
Yet another obstacle faced especially by Indian solar manufacturers is the competition from foreign manufacturers and suppliers. While foreign manufacturers dump their products at cheap prices in the country, domestic producers are finding it hard to compete, thanks to high cost of capital and largely unsupportive Government policies.
Instead of a plethora of disparate policies, India needs to create an over arching energy strategy with the Jawaharlal Nehru National Solar Mission at its core. This strategy can aim for a large-scale deployment of both centralised and distributed renewable energy. In addition, the availability of low-cost funding for renewable energy projects must be ensured to rejuvenate the sector and make it competitive.
India can emulate California's green energy aggregation model. But for that to happen, the Government must identify the challenges and mitigate them. This begins with the realisation that the present electricity regime is unsustainable
Worsening the plight of the people of Delhi who are already reeling under the power crisis, the Delhi Electricity Regulatory Commission recently increased the power tariff by six per cent. According to reports, this hike is a prelude to an even steeper increase expected to take place in July this year. Though the Government has asked the DERC to review the hike, this state of affairs have become a source of acute discomfort to the Aam Aadmi Party Government in Delhi, which has come to power on the promises of cheap electricity and free water.The present situation clearly shows that amid growing energy scarcity, there is no such thing as cheap electricity.
The city has seen a series of power tariff hikes in the past two years. The tariff was raised by 22 per cent in 2011 followed by five per cent in February 2012. The tariff was again hiked by two per cent in May 2012 and by 26 per cent for domestic consumers in July 2012. The tariff witnessed yet another increase of three per cent in February 2013 and five per cent in August 2013. For a city besieged by tariff hikes, the AAP had the opportunity to bring about a difference by establishing a future smart city whose energy needs were met by a practical and efficient renewable energy master plan. This would have helped the party stay clear of populist and impractical promises and showcased the futuristic ambitions of its leadership.
Delhi and the rest of the country are facing an energy meltdown due to skyrocketing electricity prices, supply crashes and frequent blackouts. Add to this the lack of a cohesive and sustainable plan for generating renewable energy on a large scale, and that makes matters worse. As India continues to depend on fossil fuels for electricity generation, there is a clear dearth of success stories pertaining to sustained use of renewable energy, be it for powering the streetlights of a city or operating the public transport during daytime on solar energy.
The world in the meantime has moved on to a much more resilient and sustainable manner of energy generation that is in consonance with its environmentalconservation goals. Unfortunately, India has been unable to observe and learn from the global benchmarks being set by many countries in the innovative generation of renewable energy and its application.
For instance, in the US, solar farms are blooming across California’s deserts and the number of wind turbine installations have increased tremendously. Even as photovoltaic roofs are replacing normal roofs, the population is opting for energy-efficient and energy-responsible modes of transportation. A clean energy rush is transforming California so quickly that nearly a quarter of its electricity now comes from renewable sources, making the State the first to get more than five per cent of its electricity from the sun. With a renewable energy capacity of 21,000 mw, California has set an example of sorts by doubling its wind energy production since 2009, to nearly 6,400 mw in 2014. This is catering to nearly seven percent of the State’s electricity needs.
With a the goal of 33 per cent renewable energy by 2020, California has set a target to cut its greenhouse gas emissions to 40 per cent below the 1990 level within the next 15 years — the most ambitious target in North America. California has been able to achieve this superlative position in renewable energy generation mainly due to a successful combination of favourable geography, innovative policies and businesses that saw the promise in clean energy investments.India must emulate California’s green energy aggregation model. But for that to happen, the Government must identify the challenges and mitigate them.
One of the foremost challenges facing the Indian renewable energy sector is financing — more specifically, the high cost of debt for new projects. Studies indicate that the higher cost and inferior terms of debt in India is instrumental in raising the cost of renewable energy by 24 per cent to 32 per cent compared to similar projects financed in the US or in Europe, for that matter.
Yet another obstacle faced especially by Indian solar manufacturers is the competition from foreign manufacturers and suppliers. While foreign manufacturers dump their products at cheap prices in the country, domestic producers are finding it hard to compete, thanks to high cost of capital and largely unsupportive Government policies.
Instead of a plethora of disparate policies, India needs to create an over arching energy strategy with the Jawaharlal Nehru National Solar Mission at its core. This strategy can aim for a large-scale deployment of both centralised and distributed renewable energy.In addition, the availability of low-cost funding for renewable energy projects must be ensured to rejuvenate the sector and make it competitive.