Investing in green energy is critical in today’s world for myriad reasons related to environmental, economic, and social sustainability. Much has already been written about the importance of transitioning to renewable energy sources to mitigate the negative effects of climate change, strengthen energy security and foster economic growth.
For example, recent research has highlighted the intertwined nature of clean energy and the Sustainable Development Goals (SDGs), suggesting that advances in green energy technologies can lead to public health and economic benefits without major sacrifices. That is emphasized. These benefits are essential to achieving a wide range of SDGs, including those related to poverty reduction, improved health and gender equality.
Additionally, the International Energy Agency (IEA) has identified key goals for achieving the SDGs, particularly SDG 7, which aims for universal access to affordable, reliable, sustainable, and modern energy by 2030. It emphasizes energy as a pillar.
India is actively contributing to the global transition to green energy. The country has set ambitious renewable energy targets and has made significant progress in solar and wind energy, supported by supportive government policies. This commitment was further reinforced in the recent Interim Budget Speech, in which the Government of India outlined significant allocations to renewable energy projects, demonstrating the nation’s strong commitment to expanding green energy infrastructure and achieving ambitious energy goals. .
Four key announcements in the budget speech will move this agenda forward. The first one is Prime Minister Suryodaya Yojana. This marks a transformative step in the country’s energy strategy. The initiative aims to significantly reduce household utility bills by providing up to 300 units of free electricity every month, with potential savings of Rs 15-18,000 per year. Furthermore, the surplus electricity generated can be sold to the power distribution company, leading to savings in household budgets. The scheme will not only ease the financial burden on families but also support electric vehicle charging, in line with India’s drive towards cleaner transportation options.
Beyond individual savings, rooftop solar power initiatives are poised to stimulate economic growth by creating countless entrepreneurial opportunities in the supply and installation of solar power systems. It also promises to open up new job avenues for young people, particularly in technical fields related to the production, installation and maintenance of solar panels. This is consistent with broader national goals to promote sustainable energy sources, reduce carbon emissions and contribute to global environmental goals.
Second, the announcement to provide Viability Gap Funding (VGF) for 1 GW of offshore wind energy capacity is a pivotal move for the country’s renewable energy ecosystem. This funding aims to alleviate the financial gap that has historically hindered the development of offshore wind projects due to their high initial costs compared to more established renewable energies such as onshore wind and solar energy. The purpose is With vast coastlines and large offshore wind potential, especially in states such as Gujarat and Tamil Nadu, this initiative is in line with India’s broader goals of strengthening energy security and sustainability, with hundreds of thousands of It is poised to unlock a substantial clean energy source capable of powering 10,000 homes.
The VGF is designed as a financing mechanism to make economically justifiable projects commercially viable, and will deliver 500 GW of renewable energy capacity by 2030 and net-zero emissions by 2070. It can attract private investment in sectors critical to achieving India’s ambitious goals. The government’s approach to reducing investment risks and encouraging the development of offshore wind farms is expected to facilitate significant progress in India’s renewable energy infrastructure. This strategic investment will not only diversify the country’s energy portfolio, but also mark an important step towards a sustainable and green economy, underscoring the country’s commitment to combating climate change and promoting sustainable development. It is something to do.
The third announcement of setting up 100 MT of coal gasification and liquefaction capacity by 2030 is significant as it aligns with the National Coal Gasification Mission. The initiative aims to reduce dependence on imports of natural gas, methanol and ammonia by utilizing domestic coal resources for gasification purposes, promote energy self-sufficiency and support India’s energy transition goals. is. Coal gasification converts coal into synthesis gas (a mixture of hydrogen, carbon monoxide, and carbon dioxide) through a high-temperature reaction between steam and oxygen. This process allows for more efficient energy extraction and the potential to capture CO2 before it is emitted, providing a path to cleaner energy. Coal liquefaction, on the other hand, converts coal into liquid hydrocarbons, mimicking natural oil production, but at accelerated rates and controlled conditions. Both processes contribute to reducing carbon emissions by enabling cleaner combustion, higher efficiency, and the integration of carbon capture and storage technologies.
Fourth, enhance the use of renewable biogas derived from agricultural waste, organic waste, and other biological sources by mandating the phased blending of compressed biogas (CBG) with CNG and PNG. This will technologically promote green energy in India. This approach not only reduces carbon emissions by replacing fossil fuels, but also fosters the development of biogas infrastructure, contributes to a circular economy, and improves waste management practices. This is in line with sustainable energy goals and supports India’s efforts towards reducing carbon emissions. Additionally, financial support for the procurement of biomass accumulation machinery will facilitate efficient collection of agricultural and organic waste.
Overall, India’s green energy push in the interim budget is expected to bring multiple benefits. These include creating jobs in the renewable sector, increasing energy security by reducing dependence on fossil fuels, fostering innovation in green technologies, improving the environment by reducing pollution and greenhouse gas emissions, and improving service delivery. This includes expanding access to electricity in areas with limited access to electricity, contributing to sustainable economic growth and energy as a whole. capital.
In a world where budgets often sound as dry as an afternoon in the desert, this interim budget is a monsoon of green energy initiatives, promising to sprinkle sustainability across its landscape.
(Mr. Vivek Debroy is Chairman, Mr. Aditya Sinha is OSD, Research, Prime Minister’s Economic Advisory Council. Personal view.)
Disclaimer: These are the author’s personal opinions.