The India Climate Observatory

Commentary, action and research on climate and development in India

India Climate Watch bulletin, on Budget 2014-15

by Leave a Comment

ICW_2_image_for_ICPThe first Union Budget of the Bharatiya Janata Party-led National Democratic Alliance government has focused on the growth of the economy. Finance Minister Arun Jaitley has through India’s 2014-15 budget said he will “usher in a policy regime” that takes the country “towards a sustained growth of 7-8 per cent or above within the next 3-4 years”.

Such an approach will have a very sizeable impact on India’s response to climate change. Industry and the states take their cues from the broad direction given in the annual budget, which is the most authoritative and powerful regular statement by the government that guides citizens, businesses, the public sector, and administrations at every level. In this edition of India Climate Watch, we quickly analyse the 2014 budget for what it will mean to the country’s ability to deal with a changing climate.

ICW_2_image_for_ICP_smIn the second India Climate Watch of our new series, we unpack key statements in Union Budget 2014-15 for what they mean to the country’s need to balance economic imperatives against the growing national footprint. We find a few positives and several points of concern, which are:

  • The Finance Minister said it is his duty to steer towards desired macro-economic outcomes of higher growth, lower inflation, sustained level of external sector balance and a prudent policy stance. He added that “it would not be wise to expect everything that can be done or must be done to be in the first Budget presented within forty five days of the formation of this government”. Positive, with qualifications
  • Higher growth is presented as the “sine qua non” that continues in this budget -as has been the trend for the last decade – to search for a link with bringing a large section of India’s population out of poverty. Negative
  • A number of individual provisions collectively mean greater support to renewable energy and to making efficiency in conventional energy generation the basis for power generation. The use of electricity in agriculture (by erratically metered or unmetered pumpsets) is to be addressed by solar power-driven pumpsets. A ‘clean energy cess’ on the extraction of coal has been doubled. Positive

The relationship between the central government and states is a factor that influences budgetary support for dealing with the effects of climate change. Read why in the India Climate Watch bulletin 2014 02 (pdf, 187kb).

MNRE boosts solar thermal use with subsidy

by Leave a Comment

MNRE_Solar_website_201405The Jawaharlal Nehru National Solar Mission is a major initiative of the Government of India and the state governments to promote ecologically sustainable growth while addressing India’s energy security challenge. The Mission, according to the Ministry of New and Renewable Energy, will contribute to the global effort to meet the challenges of climate change.

The first phase (till March 2013) is considered to have achieved the target. The Solar Thermal component of the JNNSM will now, until 2022, focus on promoting off-grid systems including hybrid systems to meet and/or supplement heating and cooling energy requirements and power. These systems still require interventions to bring down costs. The key challenge is to provide an enabling framework and support for entrepreneurs to develop markets. This programme will address off-grid and decentralised solar thermal application area/systems.

Fossil fuels are used for process heating, drying, distillation, water heating, space heating and refrigeration and generation of electricity. The Ministry has estimated that about 25 million households use electric geysers, consuming approximately 7,500 GWh of electricity (assuming minimum annual consumption of around 600 kWh/year/geyser) and 15 million tons a year of petroleum fuels are used in industries in thermal form at temperatures below 300°C. As about 30% of the energy consumed by industry is used for heating water, there is huge potential.

The need to scale up renewables

by Leave a Comment

IRENA_Remap_report_201405The global share of renewable energy can reach as high as 36% by 2030 with technologies that are already available today as well as with improved energy efficiency and energy access. Going further than this will require thinking “outside the box”, with early retirement of conventional energy facilities, technology breakthroughs and consumer-driven societal change.

REmap 2030, the report prepared by the International Renewable Energy Agency (IRENA), through broad consultations and engagement around the world, provides a global roadmap for doubling the share of renewables in the energy mix. This full report of REmap 2030 provides insights into five specific areas:
1. Pathways for doubling the share of renewable energy in the global energy mix based on the national plans of 26 REmap countries and the additional REmap Options, and how to go beyond doubling based on different strategies represented by the RE+ Options.
2. Socio-economic impacts related to doubling the global share of renewable energy.
3. Current situation of renewable energy markets in the power, district heat and end-use (industry, buildings, transport) sectors as well as developments between 2010 and 2030 if all REmap Options are implemented.
4. National policy proposals to improve the existing policy framework.
5. Opportunities for international co-operation of governments for doubling the global share of renewable energy.

In determining the potential to scale up renewables, the study not only focuses on technologies, but also on the availability of financing, political will, skills, and the role of planning. The study finds that doubling of the share of renewable energy in total final energy consumption by 2030 would be nearly cost-neutral. When external costs that can be avoided by replacing conventional energy are taken into account, this ambitious transition even results in cost savings.