21 Jul 2020
Posted in Power
COVID-19 may provide an opportunity for economic stimulus and recovery efforts to boost clean energy transition in India, says GlobalData
COVID-19 has given birth to some solid challenges across the Indian power and transport value chain in the form of liquidity limitations, logistics, supply-demand challenges, and shifts in consumer demand and generating preferences. A study by NITI Aayog and Rocky Mountain Institute (RMI) recognized that the pandemic can provide an opportunity to propel the clean energy transition in India. It provides an opportunity for economic stimulus and recovery efforts that can possibly help in building a clean, strong and cost-effective energy future for India, says GlobalData, a leading data and analytics company.
With this economic recovery propositions, clean energy and mobility systems are foreseen to strengthen the economy by bolstering manufacturing, enhancing electricity reliability, maintaining a strategic distance from expensive fossil fuel imports and reducing pollution.
Somik Das, Senior Power Analyst at GlobalData, comments: “The pandemic attracts the opportunity to build on the installed renewable base of the nation which now stands at 23% (excluding large hydro) of the power capacity mix in 2019. Electricity generators should consider savings from avoided fossil-fuel costs and stranded assets in the current investment decision, perhaps promoting social and environmental equity.”
The economic savings from investments in the clean energy future can be redeployed to support other sectors of the economy for development. This pathway, if carefully planned and executed, might protect existing jobs and create future job growth.
Das concludes: “Opportunities for improving the share of renewables in the electricity sector can be created by improving the electricity distribution business and its activities, empowering renewables and distributed energy resources, progressing energy resilience, and local manufacturing of renewable energy and energy storage technologies. Probably making the most of these opportunities might see the far-fetched desire of having 500GW of renewable energy capacity by 2028 a reality.”