The government is trying to increase the proportion of renewable energy sources in its energy mix, with targets for 23% by 2025 and 31% by 2050. The petroleum energy mix will also be decreasing by around 20 percent by 2050. Over the last several decades, the country has seen a rising demand for energy. However, fossil energy production cannot keep up with the rising demand. Therefore, there is an increasing need to import petroleum. These concerns are addressed by the government, which has implemented a range of policies to encourage the use of renewable energy sources in the country.
India's ambitious re targets
India's ambitious RE targets point to a positive future for the sector. Multiple long-term investors including sovereign entities, global equity firms, major oil and natural gas producers, and national conglomerates have flocked to the country. With global investor interest increasing, the sector's popularity has been on the rise. India's opportunities in RE are immense if they are implemented well.
The Government of India has set ambitious RE targets for 2030, with the aim of 450 gigawatts of capacity installed. India's renewable energy capacity will be dominated by wind-solar hybrids by 2030. To meet this ambitious target, the country will need supportive policies and innovative technologies. One example is rooftop solar plus, which is growing at an incredible rate and has the lowest cost per unit of renewable energy in India.
Costs associated with achieving retargets
The Southern African Development Community, also known as the SADC, is a region that sets ambitious goals for renewable energies. The region is well on its way to achieving full energy access and a share of 53% renewable energy by 2040. It hopes to reach these targets with investment of nearly $53 billion. The region has faced many problems along the way. This included the COVID-19 pandemic that severely impacted the energy sector. The entire electricity value chain was disrupted by lockdowns caused by the COVID-19 pandemic. This caused delays in RE project development as well as import restrictions, and logistics for equipment procurement. These delays also prevented SADC to fully benefit from policy initiatives that encourage private-sector engagement.
Impact of re targets on economic growth
To increase the proportion of renewable energy in total electricity production, many jurisdictions have adopted RETS. These targets aim to accelerate the expansion of renewables and address climate change in a timely manner. To achieve these targets, however, it will take unprecedented changes to the energy system. While RETs are useful policy tools, there are also significant practical drawbacks.
First of all targets cause psychological pressures to move quickly. This could lead to decision-makers losing sight on the essential objectives. For instance, the Renewable Energy Directive may increase net carbon emissions and deforestation. This could lead to unwise tradeoffs.
Retargets have an impact on carbon emissions
To reduce carbon emissions, Retargets were established. But these targets are not without their limitations. For one, the carbon efficiency of a region differs from another. China's eastern region, for instance, has the highest carbon emissions efficiency. The western region has lower. The effectiveness of retargets has not been proven to be effective.
It is now a pressing issue to balance economic growth and ecological management. An essential criterion for an environmentally sustainable economy is to increase carbon efficiency. Developing renewable energy sources can help meet this objective and provide a sound basis for decision-making.