Even as the COP 28 Summit on climate control brought many global climate custodians into Dubai, the earlier COP 27 held in Egypt last year had already firmed up the commitment to triple renewable-energy capacity. While discussions continue, renewable energy companies are getting into a centre-stage role now to reform and redesign power markets. Indeed, close on the heels of the recent geopolitical crises, climate change is undoubtedly a major pre-occupation of governments in most countries.
The concern about climate change is a manifestation of a broader social concern about ‘sustainable’ development. The Brundtland Commission, set up by the UN in 1987, had defined sustainable development as development that “meets the needs of the present, without compromising the ability of future generations to meet their own needs”. Indeed, it captures the fundamental inter-temporal aspect of human impacts on the natural environment.
While all global bodies have been strongly recommending the need for co-ordinated global action in managing climate change, the debate about how much global abatement should be done, how it should be shared among rich and poor countries and what abatement instruments should be used, seems to be perennial and endless.
The central issue in dealing with climate change is choosing the optimal degree of emission norms, which requires an assessment of costs and benefits over a very long period of time. Every country has its own population-based ‘fair share’ of emissions it can produce before the world hits unsafe levels of global warming. In this formulation, the US and the European countries have already far exceeded their limits; India, on the other hand, has contributed only 4 per cent of the global emissions since 1850, according to a 2019 UN report.
This is why India’s efforts to transition into renewable energy – solar, wind and hydro – have gained such prominence in recent times the world over. India is a prominent player in the global solar revolution, ranking fourth globally in solar power capacity. In the last five years, the country’s solar installed capacity has experienced a monumental transformation, increasing from 21,651 MW to 70,096 MW in 2023. The IEA projects that solar power will make up about 30 per cent of India’s electricity generation by 2040. As per estimates, this substantial growth in wind and solar power effectively prevented the release of 11 million tonnes of carbon di-oxide!
Recently, the Indian solar manufacturing sector achieved a historic milestone of 60 GW installed module manufacturing capacity. A favourable policy environment, including impactful measures such as the Production Linked Incentive (PLI) scheme, has played a significant role in this phenomenal growth of the sector.
PLI has ensured that the country will add an additional 40 GW of module manufacturing capacity by the end of 2024-25. This expansion is strategically focussed on promoting backward integration, enhancing energy security, and establishing a dependable supply chain to support domestic solar installations, which are anticipated to reach over 30 GW annually. The growing realisation across nations of the pressing need to diversify supply chains and reduce dependency on China, provides a further competitive advantage to Indian manufacturers.
PLI has ensured that the country will add an additional 40 GW of module manufacturing capacity by the end of 2024-25
Moreover, interventions to curb the high levels of imports of solar modules and cells by implementation of the ALMM (Approved List of Modules and Manufacturers) policy, will provide additional impetus to indigenous production and empower Indian manufacturers to make a substantial contribution to the global clean energy transition. It is estimated that, by 2026, Indian industry will be able to make solar modules worth 100 gigawatts (GW) annually and help the country be a net exporter of solar power.
Green energy sustainability to ward off climate change hinges on embracing the private sector in a shifting market condition. “There’s going to be a paradigm shift,” says Sultan Al Jaber, the economist & president of the UN climate conference (COP 28) held in Dubai in December. “The political process needs to be well complemented with private capital and a business mindset.”
This is where the private sector in India has excelled. Waaree Energies has taken the lead in driving the energy transition, offering innovative and reliable renewable energy solutions. It empowers businesses and individuals to make the shift towards sustainable energy sources, reducing carbon footprints for a greener world. We believe sustainability should be accessible to all. With a proven track record, Waaree Energies has demonstrated execution capabilities in delivering successful and affordable renewable energy projects.
India is well on its path to satisfy the aspiration for higher living standards, while pursuing a sustainable energy strategy, the likes of which the world hasn’t yet witnessed. Of course, we as a country are determined to pursue clean energy while seeking a balance between energy access and affordability, energy security, and environmental considerations. Therein lies the powerhouse for our future generations.