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Balance of Green Power

  • Published
    27th Oct, 2023

Context:

All states should benefit from green policies. Otherwise, there is high probability that the rich states gain, and poor ones lose in India's energy shift.

Coal's Continued Relevance and Regional Concerns

  • Persistent Importance of Coal: Recent events highlight coal's significance, despite reports of its decline.
  • Dilemma of Energy Transition: India's intent to build new coal power plants clashes with its green commitments.
  • Historical Power Plant Waves: The evolution of power plants from central PSU-driven to private promoter-led, shaping regional disparities.

Regional Implications of Renewable Energy Expansion

  • Anticipated Growth in Renewable Energy: Central Electricity Authority's report forecasts a substantial increase in solar and wind power by 2030.
  • Current Disparities in Renewable Energy Benefits: Western and southern states currently dominate grid-connected renewable energy generation.
  • Double Impact on Coal-Rich States: States with abundant coal resources may face declining coal royalties and increased power procurement costs.

Addressing Frictions and Ensuring Inclusive Transition

  • Policy Frictions and Tensions: Various policy conflicts exist between Union and state governments in the power sector.
  • Concerns for RE-Poor States: Reluctant states may hinder India's energy transition; they need a more substantial stake.
  • Reviving Balanced Regional Developmentalism: Suggestions for inclusive policies, such as preferential lending and collaborative industrial strategies, to ensure equitable energy transition.
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