Time For A Green Stimulus

Context: A timely green stimulus can address air pollution, generate surplus power, create jobs. 

Elements of green stimulus: 

• Procurement of crop waste: In a few months from now, around Diwali, the burning of rice crop residue in  northern India will create an air pollution crisis. 
  •  This can be avoided by procuring all the crop waste at a remunerative price. The waste can be convertedinto briquettes, which can be substituted for coal in thermal power stations.  
  •  NTPC has already done this successfully without adding to the cost of generation, as the cost of briquettes is  comparable to that of coal in energy terms. 
  •  Private sector can be involved in conversion into briquettes, creating dispersed demands and employment  opportunities. 
• Investment in charging stations and EVs: Demand for EVs will not pick up till a critical mass of charging infrastructureis available, and the investment incharging stations would not generate returns —a classic chicken and-egg conundrum. 
  •  A national programme forbuilding charging stations is called for in all cities with a population of over a million.
  •  This would provide a large demand stimulus across the country, generate a sustained surge in demand for  EVs and their manufacturing supply chain. 
• Decentralised solar procurement: Bringing national policy guidance for electricity distribution companies to  announce a remunerative price (feed-in tariff) at which they would buy solar power from the rural areas.
  •  This was indicated in the FM’s budget speech and needs to be followed through. 
  •  This would not need transmission investments. Distribution companies would save money as their actual  cost of delivering power in the rural areas is well over Rs 7 per unit, whereas a remunerative feed-in tariff for  solar power could be around Rs 4 per unit. 
  •  Solar power generated in a village would make it much easier to provide electricity in the day to farmers for  irrigation leading to more efficient water use. 
  •  If generating 1 MW from a village is realistic, with 6 lakh villages, there is a potential of 600 GW.
  •  Germany used a feed-in tariff with great effect to become a global leader in the use of solar power.
•  Decentralisedgas-basedeconomy: Cowdung (which has been relegated by the increased use of LPG) can be used  to produce gas which can be used as a fuel for cooking and transport, orto generate electricity. 
  •  A remunerative price would create the right incentives for private investment and income generation across  all villages.
  • India has the largest cattle population in the world, which can be helpful in this case.
  •  This would be a fit case for a bit of cross-subsidy.
  • Cross-subsidy was used to get the National Solar Mission  going. Costs have since fallen dramatically.