1. Renewable Energy in
India
Moving Towards a More Sustainable Future

2. Recent History
Historically (and currently), the installed electric generating capacity (260Gw) is
higher than peak demand (140GW). However, shortages and blackouts are
endemic due to:
• Poor distribution and transportation of coal (domestic and imported)
• Lack of coal generated energy due to poorly maintained facilities
However, India’s renewable energy potential is
large
68% of India’s energy comes from
coal (imported coal: 18%)
High dependence on imported oil
and coal is detrimental to both the
environment and economy

3. Coal Consumption
Exponential population
growth in India as well as
a larger middle class calls
for increases in the
demand for energy which
can be seen through the
greater dependence on
coal. Coal consumption
has continued to increase
regardless of the spike in
prices throughout the
last few years.
*Imported coal is of a higher quality and therefore preferred to domestic coal.

4. Targets
Prime Minister,
Narendra Modi,
sees India as the
future
‘...renewable
energy capital of
the world…’
“20 11 20 20” Concept:
• 20% reduction in GHG emissions (currently
4th largest emitter globally)
• 11% reduction in energy consumption
• 20% share of renewable energy
• 20% conservation of energy
This momentum needs to be
maintained for India to attain
their target of having 70% of their
total energy stemming from
renewable sources by 2050.

5. Risk of Achieving Goals
1. Targets extremely ambitious given India’s current economic state as
well as their history for having a high rate of stalled capital
infrastructure.
2. Lots of foreign investment necessary. They have been in debt for
years which will make it hard for investors to trust them.
3. Explosive Renewable Growth vs. Controlled Deployment. Not
necessary for such explosive and nearly unattainable growth.
4. Weak emission reduction plans. Presenting flashy and expensive
commitments to renewables while not actively reducing emission
rates is a poor plan.
5. Majority are short term goals. Need to incorporate more long term
goals to ensure that these changes will be for the long run and not a
short lived trend. These changes need to be implemented and put
in place forever.

6. Cost to Implement
Renewable energy support mechanisms include accelerated depreciation
(AD) and reduced cost, extended tenor debt.
• AD- allows developers to write off asset value of a renewable energy
project in its initial years, reducing tax liability. When value of asset has
depreciated taxes become higher in later years.
• Reduced cost, extended tenor debt- government provides debt at a lower
cost and allows for more time before having to pay back.
At this stage, wind energy costs are competitive, meaning that the shift from
fossil fuel generated energy to wind energy will be minimal  This would
NOT require government support.
The difference in cost to switch over to solar energy is still higher than fossil
fuel generated energy but predictions show that by 2019 it should become
cheaper due to inflation of fossil fuel prices Currently, government support
will be necessary.

7. Regional Discrepancies
RE-rich regions (Gujarat, Maharashtra, Tamil Nadu, Karnataka) present
aggressive RPOs because they have the supply and are eager to make
the shift.
RE-poor regions (Kailashpur, Maheshpur) tend to be reluctant in setting
aggressive RPOs because there is a worry there will not be enough
supply to meet their goals.

8. Sources
1) Council on Foreign Relations, Do India’s Targets Make Sense? (March 2015)
http://blogs.cfr.org/levi/2015/03/11/do-indias-renewable-energy-targets-make-sense/
2) International Energy Agency, Understanding Energy Changes in India
(2012)http://www.iea.org/publications/freepublications/publication/india_study_final_web.
pdf
3) Wikipedia, Economy in India (2015)
https://en.wikipedia.org/wiki/Economy_of_India#External_trade_and_investment
4) NITI Aayog, Report on India’s Renewable Electricity Roadmap 2030 (February
2015)http://shaktifoundation.in/wp-content/uploads/2014/02/Report-on-Indias-RE-
Roadmap-2030-full-report-web2.pdf
5) CNBC, Renewable Energy Heats Up In India (2015)
http://www.cnbc.com/2015/06/29/renewable-energy-heats-up-in-india.html
6) Extreme Tech
http://www.extremetech.com/extreme/195003-solar-and-wind-power-are-now-fully-
competitive-with-fossil-fuels-is-it-time-to-switch-over