The Role Of Solar Energy In Achieving The $5 Trillion Target

Recently, at the Public Affairs of India (PAFI) 8th National Forum, the Union Minister of Petroleum & Natural Gas Hardeep Singh Puri, in line with Prime Minister Narendra Modi, has asserted that the nation will reach the $5 trillion economy target by 2024-25. While the pandemic has led to a different set of growth drivers like the healthcare sector, exports, highest-ever foreign exchange reserves, etc., renewable energy can be one of the key players in leading India towards reaching its ambitious goal of a five trillion economy.

India is currently the sixth-largest economy and is projected to become the third-largest economy by 2030. While the country is in the pursuit of attaining its ambitious goals, one of the key areas to focus on will be sustainable and environment-friendly growth by adopting a greener approach. Several researches have indicated that the steady growth of any economy will be possible only through innovations and technological developments for a cleaner and greener environmental ecosystem.

While India is currently the third-largest energy consumer in the world, its energy demand will grow significantly over the next two decades. The major driver for the increasing energy demand is not just the rising energy demand but also the growing population – which is anticipated to grow by 270 million over the next two decades. For India to become a $ 5 trillion economy, the need for a low carbon and regenerative economy is imperative.

Renewable energy, especially solar energy, has the potential to play a key role in the country’s sustainable economic development. India ranks 3rd in renewable energy country attractive index in 2021, and added a record 10 GW of solar energy to its cumulative installed capacity – the highest capacity addition in twelve months, recording nearly a 200 per cent year-on-year growth. The country has also surpassed 50 GW of installed solar capacity, on 28 February 2022.

The government, in its endeavor to meet the Sustainable Development Goals (SDGs) set during the Paris agreement, has set a target to generate 500 GW of renewable energy by 2030 – almost five times of the current capacity. This will also result in the country generating 60 per cent electricity from non-fossil fuel sources, exceeding its commitment of 40 per cent in the Paris pledge. India with its vast exposure to sunlight has the potential to achieve the target and be the leading player in global solar electricity, which will be less expensive than the existing coal-fired power by 2030.

India’s ambition of rapid sustainable economic growth will require utility-scale renewable energy projects with innovative and facilitating regulatory approaches which will eventually boost pairing solar with renewable technologies and mass scale setting up of storage to offer seamless supply of green power. To attain the goal the country will also be required to attract foreign investment and collaborate with foreign renewable energy players.

However, to achieve the target of a sustainable development scenario with steep economic growth will be challenging and will require fast paced innovation, strong partnerships, and a vast amount of capital. To reduce the fuel import bills and focus on indigenous growth, India will have to emerge as a renewable and storage powerhouse, being one of the leading countries to meet the sustainable development goals. 

The country’s focus on taking the sustainable path and reducing its carbon footprint by replacing fossil fuel based electricity generation with non-fossil sources will decrease the heavy import expenditures, and open opportunities for increased investments in renewable energy.

In the rapid transition, the private players have the potential to play a significant role in the core of the renewable energy sector and delivery models by building collaborative partnerships and ensuring inclusive growth by achieving sustainable goals. According to researches, the private investment opportunities in India account to a staggering $700 billion in clean energy.

The expansion of the renewable energy sector, with solar energy leading the way, has also opened fresh employment opportunities in India. This job creation due to the renewed focus on clean energy can be a major booster to increase the country’s economy, especially in rural areas as most of these jobs require up-skilled or semi-skilled workers for maintenance and operations, installation and sales jobs.