Modi administration’s renewable energy development plan: drivers, achievements and limitations

JIN Liping1

(1.Development Institute, Yunnan University)

【Abstract】After the Modi administration took office, India announced that it would begin to promote the world’s largest renewable energy plan. The introduction of this energy plan is rooted in the country’s needs with respect to economic development, energy security, as well as political interests. From 2015 to 2017, the Indian government made several revisions and improvements to the plan, including incorporating specific details of aspects of the plan. Generally speaking, since the implementation of the plan a few achievements have been made, but major gaps remain between its objectives and current levels of implementation. At the same time, India faces many limitations with respect to institutional barriers, capital, land, technology and infrastructure. To present, India has yet to identify effective means of systematically overcoming these limitations, and as a result, risks failing to meet the plan’s objectives according to schedule. What is more, even if it meets its planned objectives, as renewable energy represents only a small fraction of the country’s overall energy consumption, the plan may realize only limited benefits with respect to India’s energy security. As such, India will continue to face long term energy concerns.

【Keywords】 India; renewable energy; energy security; investment risk;

【Funds】 National Social Science Fund of China (17BJL113)

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(Translated by LI Mengling)

    Footnote

    [1]. ① The energy categories in India’s renewable energy development plan mainly include solar energy, wind energy, hydroenergy (≤25 MW) and bioenergy.

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    [3]. ③ Shihong Zeng and Yuchen Liu, “A Review of Renewable Energy Investment in the BRICS Countries: History, Models, Problems and Solutions,” Renewable and Sustainable Energy Reviews, Vol. 74, July 2017, pp. 860–872; Saeed Ahmed et al., “A Comparative Review of China, India and Pakistan Renewable Energy Sectors and Sharing Opportunities,” Renewable and Sustainable Energy Reviews, Vol. 57, May 2016, pp. 216–225.

    [4]. ① “Major Initiatives, Make in India.”http://www.pmindia.gov.in/en/major_initiatives/make-inindia/

    [5]. ② Ministry of Power, Government of India, “Annual Report 2017–2018,” pp. 16–17. https://powermin.nic.in/sites/default/files/uploads/MOP_Annual_Report_Eng_2017-18.pdf

    [6]. ③ GW refers to the power unit, 1 GW = 1000 MW.

    [7]. ④ http://www.most.gov.cn/gnwkjdt/201512/t20151204_122632.htm

    [8]. ⑤ The generation objective of 5 GW hydroenergy does not include the hydropower capacity >25 MW.

    [9]. ⑥ India’s Jawaharlal Nehru National Solar Mission was launched by the former Prime Minister Manmohan Singh on January 11, 2010, with the goal of deploying 20 GW of grid-connected solar power by 2022.

    [10]. ⑦ Carbon intensity refers to the amount of carbon dioxide emitted per unit of the GDP. The level of carbon intensity index does not indicate the level of efficiency. In general, this index decreases along with technological progress and economic growth.

    [11]. ① http://paper.people.with.cn/zgnyb/html/2015-10/12/content_1621350.htm

    [12]. ② Central Electricity Authority, Ministry of Power, Government of India, “Draft National Electricity Plan,” December 2016, pp. 12–16. http://www.cea.nic.in/reports/committee/nep/nep_dec.pdf

    [13]. ③ http://news.xinhuanet.com/world/2017-11/26/c_1122013118.htm

    [14]. ① http://kolkata.mofcom.gov.cn/article/tzzn/201406/20140600629898.shtml

    [15]. ② Ministry of New and Renewable Energy, Government of India. http://www.mnre.gov.in/solar

    [16]. ③ http://caiec.mofcom.gov.Cn/article/jingmaoluntan/201708/20170802622369.shtml

    [17]. ① International Energy Agency, “India Energy Outlook, 2015,” p. 55. https://www.iea.org/statistics/statisticssearch/report/?country=India&product=balances

    [18]. ① Calculated based on the relevant data from BP Statistical Review of World Energy 2018.

    [19]. ② BP, “BP Statistical Review of World Energy 2018.”

    [20]. ① International Energy Agency, “India Energy Outlook 2015,” pp. 118–119.

    [21]. ② https://data.worldbank.org

    [22]. ① S. Manju and Netramani Sagar, “Progressing towards the Development of Sustainable Energy: A Critical Review on the Current Status, Applications, Developmental Barriers and Prospects of Solar Photovoltaic Systems in India,” p. 298.

    [23]. ② Initiated by India and France, International Solar Alliance (ISA) aims to raise more than USD 100 billion for poor developing countries, and through technology sharing and capacity building, strives to add 1000 GW of solar photovoltaic capacity in these countries by 2030. At present, more than 120 countries have indicated their intention to join the ISA, and 60 of them have formally signed the agreement. More than half of the ISA member states are from Africa, followed by the island countries in Indian Ocean and Pacific Ocean, and fewer members are from Asian countries, with the exception of developed countries outside France and China.

    [24]. ① Ministry of New and Renewable Energy, Government of India, “3 Years Achievements and Initiatives,” May 2017, p. 5. https://mnre.gov.in/file-manager/UserF iles/Ujwal-Bharat-English/index.html

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    [26]. ② International Energy Agency, “India Energy Outlook 2015,” p. 176.

    [27]. ③ BP, “BP Statistical Review of World Energy 2018.”

    [28]. ① Bloomberg New Energy Finance, “New Energy Outlook 2017,” pp. 2–3. https://about.bnef.com/new-energy-outlook/

    [29]. ① “Government to Form Panel to Monitor National Energy Policy,” Jan. 9, 2017. https://economictimes.indiatimes.com/industry/energy/power/government-to-form-panel-to-monitornational-energy-policy/articleshow/59569281.cms

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    [31]. ③ Gireesh Shrimali, “Instruments to Mitigate Financial Risk in Indian Renewable Energy Investments,” Stanford Precourt Institute for Energy, October 2017, p. 1. https://energy.stanford.edu/sites/default/files/bofa_india_project_paper_4pub_0.pdf

    [32]. ④ Ministry of Finance, Government of India, “Union Budget 2018–2019,” p. 4. https://www.indiabudget.gov.in/ub2018-19/bag/bag2.pdf

    [33]. ① Shihong Zeng and Yuchen Liu, “A Review of Renewable Energy Investment in the BRICS Countries: History, Models, Problems and Solutions,” p. 860.

    [34]. ② http://paper.people.with.cn/zgnyb/html/2018-06/25/content_1864039.htm

    [35]. ③ REN21: Renewables 2018 Global Status Report, 11.

    [36]. ④ REN21: Renewables 2018 Global Status Report, 44.

    [37]. ⑤ (100–17.05) GW× 1000 × 7.6 acres/MW = 630420 acres

    [38]. ① (100–17.05) GW × 1000 × 7.6 acres/MW = 630420 acres

    [39]. ② http://www.ceweekly.cn/2017/0807/200897.shtml

    [40]. ③ http://www.cankaoxiaoxi.com/world/20170503/1953803.shtml

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    [43]. ③ Ministry of Power, Government of India. https://powermin.nic.in/sites/default/files/uploads/IRCTC_ENG.pdf

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    [45]. ⑤ Ministry of Power, Government of India. https://powermin.nic.in/sites/default/files/uploads/IRCTC_ENG.pdf

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    [47]. ① Zhu, M. China Policy Review (中国经济报告), (11): 112 (2016). In order to encourage the development of renewable energy, the Article 86 of the Electricity Act of India in 2003 stipulated that the power regulatory committee in each state should determine the respective renewable energy purchase proportion. In 2006, the Electricity Price Policy of the Ministry of Electricity of India refined the regulation and required each states to introduce the renewable energy quotas, which were based on RPO and REC. The renewable energy quota system requires power distribution companies, direct purchasers of electricity, and self-generating electricity users to purchase electricity directly from local renewable energy generators, or purchase “REC” from other states in the renewable energy trading market. The REC trading system is in parallel with Feed-in-Tariff (Fit), and renewable energy generators can choose one of them. In 2011, the Indian government revised the Electricity Price Policy to further refine RPO and clarify the proportion of purchases of solar power.

    [48]. ② Bruce N. Stram, “Key Challenges to Expanding Renewable Energy,” Energy Policy, Vol. 96, 2016, pp. 732–733.

    [49]. ① http://www.cankaoxiaoxi.com/world/20180111/2251373.shtml

    [50]. ② Li, Y. Annual Report on the Development of the Indian Ocean Region (2016): Modi’s India, 197 (2016).

This Article

ISSN:1002-8404

CN: 11-1306/C

Vol , No. 03, Pages 89-109+151-152

September 2018

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Article Outline

Abstract

  • Introduction
  • 1 Content and objectives of Modi administration’s renewable energy development plan
  • 2 Drivers and appeals of the Modi administration’s renewable energy development plan
  • 3 Achievements of Modi administration’s renewable energy development plan
  • 4 Limitations and challenges of Modi administration’s renewable energy development plan
  • Conclusion
  • Footnote