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.