Clean energy systems, i.e., renewable energy and energy efficient systems, will play a key role in de-carbonizing the energy sector across the world, reducing greenhouse gas emissions and address the climate change issue.
The amount of energy the sun sends towards our planet is 35,000 times ( based on certain estimates) more than what we currently produce and consume in this world. Even if a large part is absorbed or radiated back in atmosphere, it leaves a huge multiple to address our energy needs without any “carbon footprints”.
However we need to address various factors which include increased investment costs, appropriate technology transfer, technology management and augmenting the capacity of developing countries to integrate innovative technologies.
India can seize this opportunity to become of the largest solar power markets. The latest estimates on India’s solar power potential by the National Institute of Solar Energy in India has determined the country’s solar power potential at about 750 GW , which in terms pf potential is huge and could possibly address the energy demand in very sustainable manner.
The solar power potential has been estimated using the wasteland availability data in every state and jurisdiction of India. The estimate is based on the assumption that only 3% of the total wasteland available in a state is used for development of solar power projects. Besides other renewable energy sources have a potential for 120 GW. This means that India as country has more than 850 GW renewable energy potential. Out of this we have achieved less than 0.5%.
The potential would on a conservative basis translate into more than USD $ 1.2 trillion capital investment or USD $ 800 Billion plus finance opportunity, for banks.
Besides this a country like India has 27 million agriculture pump-sets which can be replaced over a period of 15-20 years by Solar Powered Pump sets which itself would need USD $100 billion capital investment.
The steps taken by Indian Government in promoting Renewable energy especially solar energy has started creating traction and awareness amongst people especially in Rural India. However this transformation of energy system would require substantial investments, increased cash flows through financial institutions and enabling a policy framework which is proactive and practical.
With prices of solar power closing towards conventional energy, a major thrust on developing world’s largest solar energy market may ensure universal energy access for India’s poor.
This energy transformation shall enable create a future that’s “preferred” and “cleaner”.