econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 13 October 2015

India Chooses Electricity And Economics Over Emissions Goals

from The Conversation

-- this post authored by Craig Froome, The University of Queensland

India's formal climate pledge to the United Nations ahead of this year's Paris summit highlights the crossroads at which the country's electricity sector finds itself.

On one hand, there is a very strong push to deliver more energy from renewable resources, as demonstrated by India's pledge to source 40% of electricity from non-fossil sources by 2030.

But while emissions reduction is important, providing electricity to the people appears to be the more pressing issue - as perhaps shown by India's decision not to set an overall emissions-reduction target in its UN pledge. It has opted instead to set a clean energy goal and to pledge to cut the emissions intensity of its economy by a third by 2030.

With India expected to surpass China's population by 2050, one of the key issues is to deliver electricity to those people who are currently without it. That will mean expanding its existing electricity generation assets, as well replacing those that are being retired.

President Narendra Modi is a huge fan of renewables. During his time as chief minister of the state of Gujarat, he oversaw India's largest solar program. But delivering the same on a national level will be much harder.

Economic intensity

Renewable energy will also be crucial if India is to hit its other new target of reducing greenhouse emissions per unit of gross domestic product (GDP) by 33-35% by 2030 on 2005 levels. This builds on its existing target of a 20-25% reduction by 2020. That policy is already credited with encouraging coal companies to shift their thinking. Adani, for example, is establishing facilities to manufacture solar panels.

India has a range of schemes already in place to help drive these goals, such as the National Electricity Policy and the Integrated Energy Policy. These policies are further supported by market mechanisms including Renewable Energy Certificates - similar to those issued in Australia and elsewhere to encourage renewable energy.

Power to the people

Despite India having the fourth-largest electricity sector in the world, many areas of the country are still not serviced at all. On a global scale, 24% of people in the world who have no access to electricity live in India. This, rather than economics, is the real reason behind India's renewables push.

In areas not covered by the national grid, 18% of primary energy comes from biomass, which is a very inefficient energy source.

India already has a renewable energy target of 41.2 gigawatts by 2017, increasing to 72.4 GW by 2022. As at March 2014, the installed capacity was 29.5 GW, which illustrates the ambition of its targets.

Most of those areas where the electricity is needed do not have an existing distribution network. The easiest way to set up and supply these areas is likely to be through solar and wind, although India is also promoting nuclear power. Six reactors with a 4.3 GW capacity are currently being rolled out.

If India can achieve (or even partially achieve) its goals, it will involve setting up new electricity networks, many of them independent "microgrids". While the aim is to have a single national grid (with US$6 billion set aside for this), that may prove too difficult within the time frames being discussed. Instead, the electricity sector will get a valuable opportunity to learn how new renewable energy networks can be created.

Being realistic, India itself has coal assets and will continue to use these domestically, but has also stated a desire to stop importing coal within three years. This is another very ambitious target, given India's current level of imports and its need to increase electricity generation at the same time as cutting out foreign coal. The decision, however, is again largely driven by economics, with domestic coal at US$24 a tonne compared to Australian imports at US$62 a tonne.

With India becoming a global economic powerhouse, it needs to build a reliable electricity infrastructure that provides power to both its residential and industrial base. It is not a question of whether it can achieve this, but when. That will deliver significant emissions reductions, albeit as a happy byproduct of India's development agenda.

The ConversationCraig Froome, Global Change Institute - Clean Energy Program Manager , The University of Queensland

This article was originally published on The Conversation. Read the original article.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Contributors


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
The Problem With Obamacare Is That It Did Little To Reduce Overall Healthcare Spending
Joan Robinson’s Critique of Marginal Utility Theory
News Blog
Early Headlines: New Oil Pact, Facebook Should Crush Fake News, Trump Vs CIA, Dow 20,000?, Twin Bombings In Turkey, India Currrency SNAFU, New Charges In So. Korea, US-China Trade War? And More
Free Autographed Copies Of Frank Li's New Book Available - If You Act Fast
Most Women Inventors Come From America
Earnings And Economic Reports: Week Starting 12 December 2016
The U.S. Is Home To The Most Unicorns
Why Britain's Public Finances Will Suffer If Brexit Reduces Migration
Working From Home Is Still Rare In The United States
What We Read Today 10 December 2016
The Last Bucket Catch
Joe Sixpack's Situation in 3Q2016: The Average Joe Is Better Off
Why Are Some People More Delinquent On Loans Than Others? - Part 1
Gravity Returns To San Francisco Housing Market
Violent Bond Selloff: An Eye-Opening Perspective
Investing Blog
The Week Ahead: Dow 20,000 Just Ahead?
Natural Gas Prices Are Headed Higher In 2017
Opinion Blog
Is Commercial Real Estate Facing A Day Of Reckoning?
The US Has A Regime-Uncertainty Problem
Precious Metals Blog
Silver Prices Rebounded Today: Where They Are Headed
Live Markets
09Dec2016 Market Close: Wall Street Closes On A New High, Trump Sugar High, Crude Prices Testing Resistance, US Dollar Melts Higher
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government



Crowdfunding ....






























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved