The government wants to increase the use of renewable energy sources as part of its energy mix. This includes targets for 23% and 31% respectively by 2025. In addition, the country's petroleum energy mix is predicted to decline by around 20% by 2050. Over the past few decades, there has been an increase in energy demand. However, fossil energy production cannot keep up with the rising demand. Therefore, there is an increasing need to import petroleum. The government has a variety of policies to address these concerns.
India's ambitious targets for resurgence
India's ambitious RE targets are a sign of a positive future in the sector. Numerous long-term foreign investors have been drawn to India including sovereign entities and global private equity funds, as well national conglomerates and oil and gas majors. Global investor interest has accelerated and the sector has seen a rapid rise in recent years. India's huge RE potential is possible if the project is executed successfully.
The Government of India has established ambitious RE targets for 2030. They aim to have 450 gigawatts of installed capacity. By then, the majority of RE capacity in India will likely come from wind solar hybrids. To achieve this ambitious target, India will need support policies and innovative technologies. With the lowest per-kWh cost in the world, rooftop solar plus storage is among the fastest-growing segments in India's renewable energy sector.
Costs of achieving re targets
The Southern African Development Community (SADC), a region of the world with ambitious targets for renewable electricity, is one example. The region has ambitious targets to reach full energy access by 2040 and a 53% share in renewable energy capacity. With investments of almost $53 billion, it hopes to achieve these goals. However, the region has encountered some challenges along the route, such as the COVID-19 epidemic, which had a severe impact on the energy sector. The pandemic caused lockdowns which disrupted the entire value chain of electricity. This resulted in delays in RE project development, as well as import restrictions and equipment procurement logistics. These delays also prevented SADC to fully benefit from policy initiatives that encourage private-sector engagement.
Economic growth and the impact of retargets
To increase the proportion of renewable energy in total electricity production, many jurisdictions have adopted RETS. These targets aim at accelerating the expansion of renewables as well as addressing climate change promptly. But, these targets require radical changes to the system of energy. While RETs have some useful policy benefits, they can also be problematic in practice.
First of all, targets create psychological pressures to act quickly. This could lead to decision-makers losing sight on the essential objectives. For instance, the Renewable Energy Directive threatens to increase net carbon emissions and deforestation. This could result in unwise trade-offs.
Carbon emissions: Impact of retargeting
Retargets have been introduced to cut carbon emissions. However, these targets have a number of limitations. For one, the carbon efficiency of a region differs from another. China's eastern region, for instance, has the highest carbon emissions efficiency. The western region has lower. Retargets' effectiveness is therefore not yet demonstrated.
Therefore, it is imperative to balance economic growth with environmental management. Increasing carbon efficiency is a critical criterion for an ecologically sustainable economy. This objective can be achieved by developing renewable energy sources.