Clean Energy Prospects Beyond 100GW Milestone

Context: India achieved significant strides in growth of renewable sources of energy.

Significance of renewable energy

• Major driver of reducing carbon footprints and achieving Nationally Determined Contribution (NDC) targets under the 2015 Paris Agreement.
• Huge potential in India: Solar and wind potential alone estimated at 1050 GW (300GW wind and 750GW solar).
• Economic significance: According to ILO, renewable energy has the potential of generating 330,000 new jobs in renewable sector by 2022 and more than 24 million new jobs by 2030.

India’s achievements in renewable energy

• India is global powerhouse of renewable energy:

• • Despite Covid pandemic it managed to cross 100GW target installed capacity.
  • India stands fourth in the world in terms of installed renewables capacity, fifth in solar and fourth in wind.
• Set ambitious targets: Of achieving 450GW of renewable energy capacity by 2030.

Policy reforms and state initiatives that directed India’s success in renewable energy sector

• Ease of business in renewable energy: On wake of policies such as transparent bidding, waiving of inter-state transmission system charges etc.
• Market support measures: Such as Renewable Purchase Obligations (RPO) which made it mandatory for distribution companies to buy a share of power from renewable sources.

• • It is further supported by lucrative liquidity packages for distribution companies.

• Market expansion – Kisan Urja Suraksha Evam Utthan Mahabhiyan: Aimed at ensuring energy security for farmers.
• Funnelling of large investments to the tune of Rs.5.2 trillion in the past seven years in renewable energy.
• Growth in sectoral technology brings down the cost of renewables down sharply

• • In 2010, a lithium-ion battery pack cost $1,200 per kWh. Today, it costs around $120.
  • Bloombergestimates that it will fall by 8% every year to reach $60 by 2030.
• International collaboration: India’s played critical role in setting up of International Solar Alliance.

Way ahead: Fostering development of end-to-end clean energy ecosystem by developing other enabling industries such as wind equipment-making and electrolyser and fuel-cell manufacturing.