The last decade has witnessed countries all over the world betting big on renewable energy for reducing their dependence on fossil fuels. These efforts are a result of the rising concern towards two major threats being posed to the planet, that of increased levels of atmospheric Carbon dioxide and other greenhouse gases produced by the burning of fossil fuels, leading to a rapid climate change and secondly, for being able to manage and minimize the use of the diminishing fossil fuel reserves. The Kyoto Protocol was one such attempt by nations to curb the emission of greenhouse gases.
However, an economy’s requirement of power and energy needs to be met in order to keep it functional. It is precisely this gap that renewable sources of energy such as solar, wind, water and geothermal try to fill in. The global power system is experiencing a massive transformation as renewables acquire a prime position against fossil fuels and nuclear sources of energy. Amidst all the sea level changes, India too is vehemently championing clean energy. Renewable energy has been placed at a prime position in the NDA government’s agenda through the setting up of highly ambitious target of adding 175 GW of renewable energy by 2022 from solar, wind, hydro power and bio power, thereby trying to ensure lesser dependence on fossil fuels. India’s renewed thrust towards renewable energy can be felt by the capacity of installations being made despite the availability of cheaper power and less demand for power.
All these developments on a global scale are a result of clear acknowledgment of the benefits derived from the renewable sources of energy. While acting as a boon to businesses, renewable energy sources assure energy security to them through reliable power supplies. This in turn decreases the dependence on the need to import fuels. In the longer run, these installed sources of renewable energy also require lower opex, thus boosting the bottom line of the business significantly. Another added advantage is that of stabilising of the energy prices as these renewable energy sources do not involve any transportation costs.
Unlike earlier, when green energy sources were simply considered as a part of an institution’s or government’s Corporate Social Responsibility, now it has assumed an overwhelming importance as now it plays a crucial role in almost all nations’ growth strategy, especially that of India, contributing to the economic development of the country alongside impacting global climate change. India has set its target of green energy as a starting point for attaining energy security and availing energy at lower prices in the long run through minimal expenditure on energy imports. To rural India, renewable energy is no less than a boon, as it cuts through the severe electricity outages and lack of power supply through the decentralisation of energy distribution. India’s favourable renewable energy policy is also leading to the creation of new jobs in the market.
Currently, solar energy is one of the most cost effective and inexhaustible sources of power generation for India as it is present in abundance. With major technological development and the proper use of its solar and wind potential India can do away with its energy poverty, especially in remote areas where grids cannot reach out to supply power. Interestingly, the current costs which these sources generate, evolve as per the estimated targets, renewable energy production will not remain dependent on government aid and subsidies for long as they will then be able to sustain their own costs. Despite this, favourable government policies in the form of greater subsidies and beneficial taxation schemes and greater investment from the private sector remain the need of the hour for achieving best results from these renewable sources of energy.
The recent years have seen the Indian government ramping up its efforts for developing and implementing large scale utility solar and wind energy projects to contribute to the economy’s development goals, with an eye on achieving energy independence and benifitting the environment. The government’s plan of achieving 100 GW of solar power by 2022 in itself explains the trust it bestows on the benefits stemming from it in terms of reduction in pollution, health security, energy security and climate protection amidst a whole lot of other benefits. Several state governments and private companies are also actively taking up solar and other renewable energy projects to meet their renewed business targets and strategies through the adoption of clean energy.