Renewable Energy to Boost EU Power, India shares Stance
| Didhiti Ghosh, Bureau Chief, IOP, Kolkata - 11 Sep 2019

Renewable Energy to Boost EU Power, India shares Stance

  • EU industry to become more competitive via investment in the renewable energy sector, India shares stance
  • By 2030, renewable sources are expected to help meet 40 per cent of India’s power needs
  • The GOI allocated Rs 3,004.90 crore (USD 416.48 million) in the interim budget 2019-20 for development of solar power projects
  • The non-conventional energy sector received a total FDI equity inflow of USD 7.83 billion in FY19
  • India had set a target of 175 GW renewable energy capacity by 2022 and has already installed 80 GW, noted the Ministry of New & Renewable Energy
  • Northern India is expected to become the hub for renewable energy with a potential capacity of 363 GW
  • The Indian renewable energy sector is the fourth most attractive renewable energy market in the world as per the Renewable Energy Attractiveness Index 2018
  • As of October 2018, India ranked 5th in installed renewable energy capacity, and second among the emerging economies to lead to a transition to clean energy in 2018.

By Didhiti Ghosh, Bureau Chief (Kolkata), IOP

Kolkata/New Delhi, Sept 11, 2019: Investment in the renewables sector can provide major benefits in terms of the competitiveness of EU industry, as well as providing a major boost for jobs and growth, according to a new two-part study published recently by the European Commission’s Directorate-General for Energy.

As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role. Under Union Budget 2018-19, Rs 3,762 crore (USD 581.09 million) has been allocated for grid-interactive renewable energy schemes and projects. The Government of India allocated Rs 3,004.90 crore (USD 416.48 million) in the interim budget 2019-20 for development of solar power projects including both grid-interactive and off-grid and decentralized categories.

By 2030, renewable sources are expected to help meet 40 per cent of India’s power needs. The numbers behind the same are attractive, with new investments in clean energy in the country reaching USD 11 billion in 2017 and USD 7.4 billion in the first half of 2018 for investments in clean energy in India. As of October 2018, generation capacities for Waste to Energy, Biomass Gasifiers & SPV systems stood at 175.28 MWeq, 163.37 MWeq and 767.51 MWeq, respectively. The non-conventional energy sector received a total FDI equity inflow of USD 7.83 billion in FY19.

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As of April 2019, total renewable power installed capacity (excluding large hydro) in the country stood at 79.03 GW. Overall, India added 8.62 GW of grid-interactive renewable energy capacity in FY19.

India had set a target of 175 GW renewable energy capacity by 2022 and has already installed 80 GW and is set to exceed the target, the Ministry of New & Renewable Energy noted in the latest update. As of June 30, 2019, India has an installed renewable energy capacity of 80.47 GW, of which solar and wind comprises 29.55 GW and 36.37 GW respectively. Biomass and small hydropower constitute 9.81 GW and 4.6 GW respectively.

Furthermore, with a potential capacity of 363 gigawatts and with policies focused on the renewable energy sector, Northern India is expected to become the hub for renewable energy in India.

According to data released by the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflows in the Indian non-conventional energy sector between April 2000 and March 2019 stood at USD 7.83 billion. More than USD 42 billion has been invested in India’s renewable energy sector since 2014. New investments in clean energy in the country reached USD 11.1 billion in 2018.

Highlighting the significant economic contribution that renewables are already providing, the European Commission’s study identifies a number of potential solutions to bottlenecks and administrative hurdles that would provide an even greater boost to certain sectors. 

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The first part of the study focuses on the competitiveness of renewable energy technologies within the heating and cooling industry. It estimates that the four main renewable heating and cooling solutions (biomass, biogas, heat pumps and solar-thermal segments) already account for more than 650,000 full-time jobs and accrued a combined turnover of EUR 67.2 billion in 2017 – that’s close to half of those working in renewable energy sector in the EU (1.4 million) and equivalent to 43% of the overall renewables turnover (EUR 155 billion in 2017). Nevertheless, the study also finds that there are significant barriers to achieving full industrial competitiveness. To address this, it recommends creating a European heating and cooling market where carbon prices are internalised, thereby providing a level playing field and increasing the competitiveness of renewables-based alternatives compared to fossil-based solutions. The study also suggests removing the current bias towards fossil-fuel solutions, for example by upgrading the skills and awareness on the side of installers and technology buyers and streamlining technical requirements, certification, standardisation and licensing requirements in Europe to open up local markets.

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By Didhiti Ghosh - https://bit.ly/2lZFMuR

The second part of the study examines the competitiveness of corporate sourcing of renewables, which saw significant growth in 2018. The results show that corporate sourcing of renewables improves the competitive advantage of European companies, but that they face a number of barriers when trying to source renewables. This assessment shows that if EU-based industrial and commercial companies committed to source renewable electricity to meet 30% of their total demand of electricity by 2030, then the EU renewable energy sector would generate more than €750 billion in gross added value and over 220,000 new jobs.

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By Didhiti Ghosh - https://bit.ly/2m5jVCt

By looking at the 2030 renewable heating and cooling targets for every Member State, the study also provides important input for the development of the National Energy & Climate Plans (NECPs) that the Member States have to finalise before the end of 2019, recalling that only 16 Member States have included 2030 renewables heating and cooling targets in their draft NECPs submitted earlier this year. The report also includes an analysis of the barriers to corporate sourcing of renewables in 10 EU Member States and provides suggestions to facilitate the use of Power Purchase Agreements.

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By Didhiti Ghosh - https://bit.ly/2kgVcus

The Indian renewable energy sector is the fourth most attractive renewable energy market in the world as per the Renewable Energy Attractiveness Index 2018. Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 19.78 per cent between FY14–18. Power generation from renewable energy sources in India reached 101.84 billion units in FY18 and 126.76 billion units during April 2018-March 2019. As of October 2018, India ranked 5th in installed renewable energy capacity, and second among the emerging economies to lead to the transition to clean energy in 2018.

The Government of India allows a 100% FDI under the automatic route for projects of renewable power generation and distribution. India, therefore, offers one of the largest investment opportunities in the renewable space.

Image Courtesy: Physics World, AsiaPacific.ca

[DIDHITI GHOSH is an India Columnist at La Agencia Mundial de Prensa, USA, Bureau Chief of Indian Observer Post based in Kolkata & Conference Interpreter (Spanish-English-Bengali). E-mail: didhiti.24@gmail.com | LinkedIn: https://bit.ly/2H6gNAv].

 

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