5 Policy Solutions for Energy Consumption Challenges in India

India, being a country where more than two-thirds fuel needs are imported, substantial rural regions remain without electricity, and whose population closely competes with the world’s most populous nation, desperately needs energy solutions if it has to keep up with the economic development plan charted out by its leaders.

Though challenges in India’s energy consumption may seem to outnumber possible solutions, here are some significant areas where robust policies can be implemented to make all the difference.

1. Renewable energy: Clearly, the need for secure, affordable, and environmentally sustainable energy cannot be fulfilled until dependency on imported fuel is maintained. Since India does not have enough natural resources to fulfill its energy demands through conventional methods, it has to focus on renewable sources to augment its grid power, provide energy access, reduce consumption of fossil fuels, and to move further on its low-carbon growth planning.
2. Supportive tariff policies: The Electricity Act 2003 makes it mandatory for State Electricity Regulatory Commissions (SERCs) to include energy from renewable sources for its purchase and distribution. As of the present, several states – Gujarat, Rajasthan, Tamil Nadu etc. – have SERCs that require a certain percentage of their electricity to be purchased from renewable sources. Initiatives like these help renewable energy producers confidence to take the initiative – which means more investors are attracted.
3. Consumer participation: The open access that has been given to buyers to be able to choose where they buy electricity from has fostered healthy competitions and more secure and stable grid operations leading to less grid failures and power outages. Such policy reforms help bring a much-needed overhaul in the existing electricity distribution process.
4. Promotion of private investment: Fiscal and financial incentives, preferential tariffs such as accelerated depreciation, capital/ interest subsidies, and nil/ concessional excise and customs duties have been attracting private entrepreneurs in the renewable energy sector to set up projects in various parts of India. Policies to encourage these practices will attract not only national but international companies to develop renewable sources in India brining the best available technologies to the country.
5. Exploitation of wind and solar sources: With a massive potential of 48,500 MW from wind energy and 300 clear sunny days in a year that translate to receiving about 5,000 trillion kWh solar/year, India has enough resources to supply power to its entire population and then some. Although various efforts are being continuously made towards the development of projects to feed renewable energy in the grid, enthusiasm from the general masses in this domain would likely push the efforts further.

In terms of resources, India clearly doesn’t fall back anywhere. However, technical and economic possibilities need support and that’s where stakeholders and general public can enact their roles – the first by making policies and the latter by a whole-hearted support to such initiatives.

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