India is promising to become the world’s clean energy hot spot. Seven trends are catalysing the evolution of low-carbon economy in India. These include big investment in renewables, proactive role of state governments, emerging IT solutions for emission reduction, innovative microfinance schemes, clean transport, carbon markets and corporate interest in rural renewables, says a new report.
Giving an insight into these trends, India: Renewable Energy Trends points out that the country has become the third most attractive destination, after the US and Germany, for investment in renewable energy. The credit goes not only to enterprising entrepreneurs, cleantech investors, venture capital and private equity communities, but also to the government for creating an enabling environ- ment by formulating favourable policies.
It’s not only top down progress, but also bottom up. Indian states are leading the way. While the ministry of new and renewable energy is in favour of generating 10% of electricity from renewables by 2010 and 20% by 2020, Karnataka is already open to raising the target from 10% to 20%. Eleven other states are also serious about generating 0.5% to 10% of their energy mix from renewable sources.
Companies are looking beyond proven wind and solar technologies and coming up with solutions to face challenges from climate change. IT companies have developed technologies that measure and manage energy usage. Wipro is working on a suite of IT-enabled solutions to help clients become carbon neutral. At the other end of spectrum are smart home townships like Palm Meadows in Hyderabad, where IT systems help in managing energy consumption, and developers like SA Habitat, which are planning to work with start-ups like Valence Energy to utilise IT platforms to build solar powered homes.
Small is becoming big when you look at the mushrooming of microfinance and micro-utilities. MFIs like Sewa Bank, Basix and SKS Microfinance have come up with specialised lending models for clean energy products and services. A case in point is Selcos partnership with Sewa Bank and others. Selco has offered home lights systems to lakhs of poor people at affordable terms. Similarly, micro-utility entrepreneurs, who offer solar lanterns on daily rentals, have become the brand ambassadors of Teris Light a Billion Lives campaign.
In cities, its the deployment of clean transport that symbolises the progress in renewables. While Delhi leads the rest of the country with the deployment of transport run on CNG, Bangalore-based Reva has been selling its plug-in electric car not only in India, but all over the world.
While the government policies and intervention have laid down the basic framework for a low-carbon e conomy, its the corporate sector that is leading the charge with help from Clean Development Mechanism. The attraction of earning additional revenues from carbon credit sales has spurred the likes of the Ambanis, Tatas and Mahindras to announce investment plans in wind farms.
Corporate sector is not only looking at renewable energy for diversification, but even mainstreaming it by integrating generation of renewable energy into its non-energy business operations, particularly in villages. While DESI power and Selco are selling clean energy products and services to villagers, a company like Reliance Industries has developed its farm-to-market model in such a way that it provides for of setting up of 1-2 mw solar power plants in villages to run its rural food processing centres.
The report authored by Fulbright scholar Alexis Ringwald and edited by Malini Mehra of Centre for Social Market, not only gives an insight into the trends but also makes a strong case for positioning renewable energy as a solution to the problems of climate change, energy security and economic slowdown. It does not stop there. Emphasises the report, The seven trendsprovide a glimpse of exciting developments to come, and reveal that with continued policy support, investment, and technological innovation, India could become a global leader in renewable energy.
Source: The Financial Express
Publiahed on 28 July 2008