Published By : 20 Oct 2015 | Published By : QYRESEARCH
The renewable energy sector in India is booming. The investment from China has skyrocketed in the past few months. Take the example of the Sany Group that makes construction equipment that has just joined the ranks of top investors of renewable energy sector in India. This firm declared past week that it will channel around US$3 bn towards the development of at least 2 GW of renewable energy capacity in its neighboring country. In India, Sany Group will focus on states such as Andra Pradesh and Maharashtra.
Major announcements related to a lot of cash and massive capacity check a solid handful of several sustainable development boxes. These investment promise expansion of renewable in the country, money flow between emerging nations, and private sector partnerships that will help to reduce emissions.
Though this might be good news for the environmentalists, it might not be so good overall. These investments might need land, and there is a danger of missing the banyan trees forest. The key here is to understand the difference between pure financial motives and climate action. At present, India has around 250 mn people that don’t have electricity. It would take around 225 TW hours annually to get them online, which makes the projected 4.5 TW hours from Sany Group’s 2 GW seem relatively low. Hence, when it comes to energy policy the main goal should be to shrink the 250 mn figure as soon as possible. This is what coal power can do.
Nevertheless, even with the significant money being invested is it not possible for rural India to leapfrog coal and at the same time meet the climate aims and create goals simultaneously. However, this dream is challenged by the affordability of solar power that is decentralized. The solar micro grids are not addressing the issue of climate change. These grids do not displace the use of coal as many target villages are not connected to central grid.