Ratul Puri on increasing consumption of Renewable Energy
With Indian Prime Minister focusing on renewable energy’s consumption, the Chairman of Hindustan Powerprojects Pvt Ltd (HPPPL), Ratul Puri represented his thoughts on the matter. HPPPL is an Indian electrical power developer with headquarters based in New Delhi.
Ratul Puri brings the attention towards renewable energy consumption in developing countries. Then he shifted the focus to solar energy which is turning into an affordable facility nowadays, and then jumped to Paris COP21 climate summit, where India pledged to generate 40% of its electricity from renewable by the end of next decade, i.e. 2030.
The idea of Solarizing India is tempting for numerous investors as they want to seize the opportunity, mentions Ratul Puri. Highlighting the favourable conditions in the Indian system, Ratul Puri says, “India for once is going beyond all political persuasions with the States in sync with the Country’s vision. Thereby, the States are developing policies to boost solar capacity in their respective areas as per their requirements.”
The HPPPL Chairman then enumerates the states, where solar energy generation and consumption have been initiated and adopted as an alternative source of energy, which include Madhya Pradesh, Rajasthan and Gujarat but relatively new ones such as Andhra Pradesh, Telangana, Karnataka, Odisha are the trump cards. On the other hand, West Bengal, Uttar Pradesh and Jammu & Kashmir, are working and developing policies to attract investments with an aim to build solar capacity.
By analyzing the recent thermal and solar bids in India, it is safe to conclude that grid parity has been achieved which was the ‘holy grail’ and a key milestone towards large scale adoption of solar in India. The country, where the average solar tariffs were between Rs. 10.95/kWh and Rs.12.76/kWh in December 2006 has dropped to Rs 5.00 – Rs 5.50 in 2015 whereas the thermal bids during the last 6 months has landed in the range of Rs 4.00 to Rs 5.00. Thereby, safe to say India has indeed achieved grid parity and this could result in higher investor stickiness to the sector. On the same note, the Rs 4.63 tariff bid should be seen as placeholder and not debated too much till the time there are sustained ROI from the project.
The core of the debate whether the recent tariff fall, grid parity, the policy changes etc enthuse the investors enough to help India build out its infrastructure has been answered without any doubt. It is now just matter of time before India reaches its objective, but at this moment, the country should enjoy the ‘sunshine’!