The Editor of InPEC – Siddharth Singh – attended the Clean Energy Ministerial that took place in Delhi on the 17th and 18th April, 2013. The Prime Minister of India, while inaugurating the summit, reiterated several clean energy promises that the Government of India has made in the past. In an article on RTCC (Responding to Climate Change), Siddharth analyses whether India has the capacity and will to keep up with these goals.
By Siddharth Singh, 24th April, 2013
On a recent RTCC article, I begin,
“(The Prime Minister made…) bold promises about India’s commitment to the (renewable energy) cause. These include a goal to double India’s renewable energy capacity from 25000 MW in 2012 to 55000 MW by 2017.
This in turn includes, for instance, the National Solar Mission which has an objective of developing 22000 MW of solar capacity by the year 2022. These are a part of India’s commitment to reduce the energy intensity of its GDP by 20-25% by 2020.”
I present a few reasons why India may find it hard to keep up with these promises. Two of these are, 1. general delays in project implementation and 2. the overbearing fiscal deficit. From the article:
“(…) it is commonplace to find projects delayed across sectors. According to a study by the Ministry of Statistics and Programme Implementation, as of May 2012, 42% of the infrastructure projects in consideration were delayed.
Another issue is the precarious fiscal situation of the government.(…) The impact of this may go either way for the renewables sector. On the one hand, lowering fossil fuel subsidies and the rise of overall electricity prices (by the ways of a loan restructuring arrangement with state electricity companies) may make renewables more competitive with traditional sources.”
To read this article in its entirety, please visit RTCC by clicking here.
Siddharth Singh is an economic analyst based in New Delhi. He is the Editor of InPEC. He can be found on Twitter here.