Impact of ISA on India: Energy Economics & Financial Analysis
It is evident that China has led the Global Solar Energy Industry a decade ago with its multi large-scale projects and supportive government policies. China is undoubted, the world’s largest producer of clean energy now wherein India turned up a little late at the participation but now racing far ahead in terms of big projects. As per the recent reports by a U.S based think tank Institute for Energy Economics & Financial Analysis (IEEFA), around 50% of the world’s 10 largest solar parks under construction are in India. Impact of ISA on India has truly effected the citizens of the nation and hopefully, we will make our living style better.
Especially, the Rooftop Solar installation is set to be the next driving force for Indian solar Industry. A 19-MW system installed on an 82-acre campus of the RSSB Educational & Environmental Society in Amritsar, Punjab is currently the largest. However, we still have multiple policy issues because of the expected imposition of safeguard duty on solar panels which could hamper growth. The government though has put an effort to make India a clean energy leader with the launch of the International Solar Alliance (ISA), a non-profit group of 121 countries promoting solar energy. This establishment of ISA Headquarters in New Delhi is a sign that India is definitely claiming pole position in climate leadership.
PM Narendra Modi, inaugurated the first assembly session of the ISA, in the presence of United Nations General Secretary, A. Guterres, in New Delhi. It is a great political vision, one with the broad lines shared between France and India. In France, a law is passed that says it is going to be forbidden to exploit hydrocarbons or fossil fuels by 2040 as they believe that fossil fuels should remain in the soil. And PM Modi also said the same that solar energy and renewable energy are the energies of the future, for which we need to do our very best to accelerate the speed and scale of development on that sort of technologies. Hence, this International Solar Alliance is the best place to do that and is all part of the mandate. With this great political vision, it really shows that now fossil fuels are extinct and it is time to really focus on developing renewable energy.
It is indeed going to be a challenge to an existing system of energy providers like OPEC which is already a group of nations that are oil producing and oil exporting countries. So, will this International Solar Alliance give OPEC a run for its money? Being two different systems, ISA and OPEC, generally it is the technologies that are working under. It is mainly with the development of technologies, like working on developing a host of solar energy projects and storage as well. And countries such as Africa potentially could provide energy to the rest of the world. One of the other major challenges for solar energy in a country like India is that since we are close to the equator and thus have a lot of sunshine for a large part of the year but still has not much of space that solar energy requires to install solar panels so, is not that easy to acquire and maintain because of their inexpensiveness. This International Solar alliance can provide the solution because it gives scale and with it you have the space to do the research and development, to work on some of the emerging technologies, for instance, it could be windows for solar panels, or rooftops. The productivity of solar energy is also increasing quite fast and more we develop such projects the costs become lower, and hence the cost of renewable energy particularly, solar energy is falling down. India is indeed the country with a booming solar industry where the prices are falling with various different technologies. India’s commitment to renewable energy has been apparent to many people in the world and Indians are trying to be conservationists now inherently but the idea of the Solar Alliance was also a sort of an off-shoot of the Paris agreement where countries like India and China, essentially talked about ways to mitigate their carbon footprint in the world. This agreement was mainly for how the world move towards a better use of energy and France is leading that initiative. But with the pull out of the U.S from the agreement, Indians and many other countries were of the notion that it won’t be easy to convince the biggest, strongest and richest country in the world to be part of the agreement, signing a commitment to address issues of climate change and carbon emissions.
Although it is of serious concern that a country like the U.S. decided to leave the Paris Agreement but then a lot has been happening as with the pull out of the U.S from the agreement didn’t make other nations to leave and making it a very strong framework on which every country can base their public policies and technological developments on. Secondly, the decision of President Trump has pushed the alliance for more actions and hence, President Michael decided to launch One Planet summit, where he will ask all organizations, companies, NGOs, countries, and cities to do more willingly by coming to Paris together and take a step further, making important commitments.