Us Clean Energy Moves Are Aimed At Boosting Its Exports

In his budget speech, Union finance minister Arun Jaitley correctly asserted that environmental degradation hurts the poor more than others. However, his assertion in the very next breath that his proposals amounted to greening the development process was pure rhetoric. The only green shoot is the doubling of the cess on coal to Rs 200 a tonne. This should give a fillip to renewables since the revenue will accrue to the National Clean Energy Fund, which has received Rs 17,000 crore since Jaitley announced a Rs 100 cess in his 2014 budget. Since one in four Indians don't access electricity, renewables offer hope.

The NDA is gung-ho about switching to these sources. By 2022, the government wants to create a capacity of 175,000 MW in this sector. The lion's share will go to solar, with 100,000 MW. India is more fortunate than its neighbour China in that it receives sunlight for many more days in the year. However, China is the world's largest investor in solar and wind energy. According to the Economic Survey, India's solar sector has grown more than a hundred times in just four years to 3,000 MW out of a total installed energy capacity of 250,000 MW. It could also generate as many as a million jobs by 2022 in project design, construction, installation and operation.

The ministry of new and renewable energy believes that the solar target can be achieved by a mix of technologies. A study by two Delhi-based think-tanks shows that roof-top panels would comprise 40% of the capacity, as will large-scale projects, while solar parks will account for the remaining 20%. Prime Minister Narendra Modi has evinced a huge interest in solar power ever since he was chief minister of Gujarat. Three years ago, he inaugurated the country's first project where panels were erected over a Narmada river canal. It was commissioned by SunEdison, a US company.

In seven years, the NDA also envisages creating an installed capacity of 60,000 MW of wind power, 10,000 MW of biomass energy and 5,000 MW from small hydroelectric projects, which are more environment-friendly than large dams.

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