India will remain hooked on coal despite the green energy boost of 330 billion dollars
NEW DELHI: India may be running the world's largest renewable energy program and offer a space for investments of more than $ 300 billion over the next decade. But it will remain hooked on fossil fuels, especially unless an advance in energy storage technology makes it affordable for utility-scale projects, the Economic Survey said on Thursday.
However, the continued dependence on coal does not mean a dilution of India's climate commitment and the country will continue to pursue green energy path. Harnessing these (renewable) resources is part of India's vision of achieving social equity and energy transition with energy security, a stronger economy and mitigation, said the government's report for 2018-19.
To demonstrate its point, the survey said that currently renewable energies represent 10% of the energy generated in the country, which occupies the fourth place in world capacity, the fifth in solar energy and the installed renewable capacity in general. The government hopes to achieve the goal of reaching a renewable energy capacity of 175 GW (gigawatt) by 2022.
So, what will keep the coal in play? The intermittency of the supply of renewable energy and the sudden abandonment of coal power plants without fully utilizing their useful life, leading to an asset mismatch that may have an additional adverse impact on the banking sector.
A complete must take into account the economies of both coal and renewable energy, as they are interdependent. They are substitutes for each other as a source of energy, but they are complementary to maintain stable flow to the grid, since the generation of coal represents a stable source of energy, while renewable energy can be variable, the Survey said.
This supports the growth recipe of the Survey, which requires raising the per capita two and a half times to achieve the desired upward trajectory. Therefore, until storage technology becomes viable, the Survey suggested developing capacity for cleaner and more efficient coal technologies, given the country's sustainable energy objectives and the importance of coal-fired power plants.
According to the Survey, India's per capita energy consumption is equivalent to 0.6 tons of oil equivalent (toe) compared to the global per capita average of 1.8 toe. India's per capita consumption of primary energy per capita is lower than that of upper-middle-income countries by a considerable margin.
the Narendra Modi the government achieved 100% of the electrification of the villages connecting almost 19,000 villages and energized all the homes in the country during its first term that ended in 2018-19. This is expected to stimulate demand and increase energy consumption per capita.