You are here: Home » News-IANS » Business-Economy
Business Standard

Massive capital flow needed to boost India's transition to renewable energy

IANS  |  New York 

Conditions have to be created for the infusion of capital needed to accelerate the transition to renewable sources of energy, according to a panel of experts.

Ajay Mathur, the of TERI and of the Transitions Commission (ETC) who chaired the panel on Tuesday, said: "You need private capital as well as public capital and public capital needs to be more risk-taking, while risks have to be reduced for private capital."

At the same time, the costs have to remain low enough for power to be affordable yet ensure that returns that can attract investors, he added.

The panel, Transitions: Reconciling Competing Imperatives of Development and Environmental Sustainability, was one of the events on the sidelines of UN High-Level General Assembly Session.

One of India's advantages is that with its rapid pace of development, more than half of what it needs by 2030 is yet to be built. This means that they can be done in a sustainable manner to balance the imperatives of both development and climate change, he said.

Mathur said that a shift to renewable was essential for this and "targets 175 GW of renewable capacity by 2022 (or 20%-22% of generation) and 265 GW by 2027."

Rachel Kyte, the of the UN for Sustainable Energy for All, said in her keynote address that there was no longer a dualistic view that looked at development and in opposition to each other.

Individuals should be at the centre - they want clean air, safe medicine, and these were the priorities - and was moving the right direction, she said.

Remy Rioux, the of (AFD), said the private sector had to work with development banks to generate adequate capital.

Development and climate action cannot rely entirely on foreign aid and other alternatives for financing for the UN Sustainable Development Goals and climate action have to be created, he said.

Woochong Um, the of the Sustainable Development and Climate Change Department, said that it was increasing the financing of climate action-related projects and by 2020 it will allocate $6 billion or 30 percent of its outlay for the sector.

To make power investments attractive to risk-averse bankers, the ADB was focusing on developing at planning stages of projects concepts to reduce risks, he said.

Sumant Sinha, Chairman and of ReNew Power, said that despite its great potential, capital was not flowing at the moment to the sector to the extent needed.

One of the problems to scaling up production was that power tariffs were reduced each time there was an increase in production, which in turn inhibits investments to increase capacity, Sinha said.

If there was a certainty in the tariffs and they held steady, there would be a much larger increase in renewable power generation capacity, he added.

Mohit Bhargava, the at NTPC Ltd, said that had to be looked at as an one-stop solution to climate change, with transportation, agriculture and even cooking switching from fossil fuels to renewables.

About 30 percent of vehicles were expected to run on by 2030 and gradually electric stoves will replace the gas cookers, he said.

The cost of from sources like solar have come down drastically to about Rs 2.50, which is lower than the marginal cost of coal-generated electricity, he said.

As a result by 2030, about 40 to 45 percent of will come from renewables, with the share of thermals going down proportionately, he said.

Bhargava said that coal was, however, not going to disappear because, among other reasons, was not available during the peak use hours at night and will have to become economical for that.

--IANS

al/mr

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, September 26 2018. 12:58 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU