Green power sector: The India advantage

The country's status as a developing nation may actually prove to be a blessing in disguise for the green power sector

A yawning rural-urban divide, exploding population, inadequate facilities, low standard of living-these are only but a few of the many challenges that lie ahead before India as it forges up on a steep, development gradient. On the other hand, the world at large is confronted by the urgent need to make industry, business and lifestyles greener and more environmentally responsible.

For government and regulatory bodies in India, balancing the need to 'go green' with developmental issues seems difficult, even more so when the demand for resources and amenities far outstrips the available means. In such a situation, it seems but obvious for sustainability to take second place to economic growth. But if green development experts are to be believed, India's current situation places it at a unique vantage point for harnessing green technology to further its economic growth.

A power-hungry nation

Rapid urbanisation and booming industries have generated a huge demand for energy, one that far outstrips the supply. India's traditional dependence on thermal, coal-fired power plants is proving grossly insufficient, while also increasing power costs as resources become scarcer and more difficult to come by. For power producers, therefore, it makes more sense to invest in low maintenance, high output green energy technologies such as wind and solar power, which will prove to be a long-term, sustainable and cost-effective solution, in times to come.

A multi-pronged advantage

India's topography and geographic situation ensure that it receives ample sunlight and wind all through the year, making it an ideal candidate to harvest wind and solar energy. The Indian government is also a signatory on several international 'green' forums such as the Kyoto Protocol, and has accordingly issued legislature that incentivises the use and generation of sustainable power.

Considering that the cost of setting up a sustainable power plant is only slightly higher than a traditional fossil fuel-based unit, investing in the former is increasingly viable for Indian power players. Further, favourable government policies make it that much more cost-effective to set up these plants. Low running costs mean a shorter payback period-all the more reason for the renewable energy sector to flourish on the domestic front.

Opportunities from challenges

India's existing power grid is the number one reason why despite increased interest from the government and a booming power sector, the close-to-100 GW disparity between demand and supply continues to exist. The good news is that revamping this now obsolete grid structure is the only feasible way forward for the domestic power sector, and hence power producers will have to invest in developing newer, smart grid technologies.

The opportunities-from-challenges scenario exists in other areas as well: with India facing an acute shortage of potable water, the urgency to investigate alternative technologies such as desalination and wastewater recycling units is much higher than in other developed nations, which can go without such initiatives in the short term. India is poised for a sea change in terms of sustainable technologies, provided the private and public sector discard short-term profits in favour of long-term, sustainable rewards.