Can renewable energy be the answer to the crisis in India's power sector?
BUSINESS ECONOMICS|June 16 - 30, 2018

The demand for energy depends on the rate of a country’s industrial growth as well as residential and commercial demands. India is the world’s fourth largest energy consumer. According to market insiders, India’s coal industry is failing to meet its mark under the NDA government.

Kuntala Sarkar
Can renewable energy be the answer to the crisis in India's power sector?

India is fostering new relations with Indonesia and Sri Lanka to supplement its domestic demand for coal. Additionally, India is trying to think beyond traditional energy resources like coal and natural oil, focusing on renewable energy sources to achieve sustainable growth. Around one fifth of India’s energy is presently produced from renewable sources.

Current trends

Over the past few years, the Indian coal industry fell short of supply as against its increasing domestic demands. The cabinet decision to open up coal mining to commercial miners is an interesting development. In the financial year 2016-17, 34 Coal India projects were delayed due to issues pertaining to forest clearances and land acquisition. This is a recurring issue in this sector in India.

According to India’s draft National Policy on Renewable Energy, which is based on micro-grids, it is expected that the government would establish at least 10,000 renewable-based micro and mini-grid projects across the country. For the first time, the Indian government complemented grid access with decentralised, smaller-scale systems that are aimed to supply electricity directly to consumers. The country planned to ramp up its solar power generating capacity to 100,000 MW by 2022 which is nearly a 25-fold increase from 4000 MW of installed capacity that was there in 2015. This means that every year, India had to install about 14,000 MW of solar power continuously for the next seven years if this ambitious 100 GW target had to be achieved. The records indicate that in the last five years India has succeeded in installing only around 2000 MW of solar power. The fate of other renewable sectors has fared similarly.

Challenges in current coal market

This story is from the June 16 - 30, 2018 edition of BUSINESS ECONOMICS.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the June 16 - 30, 2018 edition of BUSINESS ECONOMICS.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BUSINESS ECONOMICSView All
Deposit shortage: challenges facing India's banking ecosystem
BUSINESS ECONOMICS

Deposit shortage: challenges facing India's banking ecosystem

In any macroeconomic framework, the household sector plays a critical role as a driver consumption, savings, and overall economic activity.

time-read
4 mins  |
November 01 - 30, 2024
India's future dreams in Semiconductors & AI
BUSINESS ECONOMICS

India's future dreams in Semiconductors & AI

A midst the gloom of the RG Kar affair or the Tirupati laddu scam or even the continued terrorist attacks in Jammu & Kashmir, even after the completion of the first general election in the state, we find hope and encouragement when the founder of Nvidia, Jensen Huang, in his recent visit to India says \"India will be a gigantic opportunity for us\".

time-read
2 mins  |
November 01 - 30, 2024
The Ramayana: Justice and Modern Man
BUSINESS ECONOMICS

The Ramayana: Justice and Modern Man

Consisting of Twenty-Four Thousand worthy Sanskrit verses, the Ramayana is one such epic, which provides a pathway to one committed to justice to establish himself as an ideal human being by following the exemplary life of its hero.

time-read
6 mins  |
November 01 - 30, 2024
Vallabhbhai Patel: A Sardar of Farmers, A Matchless Social Reformer and the Maker of United India
BUSINESS ECONOMICS

Vallabhbhai Patel: A Sardar of Farmers, A Matchless Social Reformer and the Maker of United India

Sardar Vallabhbhai Patel was instrumental in unifying the princely states to form the Union of India.

time-read
5 mins  |
November 01 - 30, 2024
Understanding Prosperity: NOBEL Prize awarded for groundbreaking research on institutions and economic development
BUSINESS ECONOMICS

Understanding Prosperity: NOBEL Prize awarded for groundbreaking research on institutions and economic development

The Royal Swedish Academy of Sciences has awarded the Memory of Alfred Nobel to three US-based economistsDaron Acemoglu, Simon Johnson, and James A. Robinson\"for their studies on how institutions are formed and affect prosperity.\"

time-read
2 mins  |
November 01 - 30, 2024
Sinking Resources: Groundwater crisis and sustainable solutions in Kolkata
BUSINESS ECONOMICS

Sinking Resources: Groundwater crisis and sustainable solutions in Kolkata

Kolkata's underground water crisis is becoming a serious issue, driven by rapid urbanization and the construction of high-rise buildings.

time-read
4 mins  |
November 01 - 30, 2024
Tourism Industry positively impacted by the festive season
BUSINESS ECONOMICS

Tourism Industry positively impacted by the festive season

Diwali transforms streets into a spectacle of festive lights, Diwali transforms streets into olis, and families gearing up for grand celebrations.

time-read
2 mins  |
November 01 - 30, 2024
RBI's Shift to a Neutral Stance: Signaling a New Phase in Monetary Policy
BUSINESS ECONOMICS

RBI's Shift to a Neutral Stance: Signaling a New Phase in Monetary Policy

For over a year, the Reserve Bank of India (RBI) has taken a firm stance against inflation, raising interest rates by 250 basis points between May 2022 and February 2023 in response to post-pandemic price pressures.

time-read
1 min  |
November 01 - 30, 2024
UK Budget
BUSINESS ECONOMICS

UK Budget

There _ he latest UK budget represents a departure from previous fiscal documents.

time-read
2 mins  |
November 01 - 30, 2024
Han Kang's Historic Nobel Prize Win
BUSINESS ECONOMICS

Han Kang's Historic Nobel Prize Win

The 2024 Nobel Prize in Literature has been awarded to T South Korean writer Han Kang, 53, known for her works including The Vegetarian, The White Book, Human Acts, and Greek Lessons.

time-read
2 mins  |
November 01 - 30, 2024