With targets of 23% for 2025 and 31% for 2050, the government is trying increase its use of renewable energy sources. In addition, the petroleum energy mix is expected to decrease by about 20 percent by 2050. Over the last several decades, the country has seen a rising demand for energy. However, fossil energy production is not able to meet the demand, resulting in an increasing need for imported petroleum. The government has a variety of policies to address these concerns.
India's ambitious re targets
India's ambitious RE targets are a sign of a positive future in the sector. The country has attracted multiple long-term investors, including sovereign entities, global private equity firms, oil and gas majors, and national conglomerates. This sector has experienced a tremendous rise in global investor interest over the past few years. India's opportunities in RE are immense if they are implemented well.
The Government of India (GOI) has established ambitious RE targets by 2030. This includes a goal of 450 megawatts of capacity. The majority of India's RE capacity will be generated by wind and solar hybrids by then. To achieve this ambitious target, India will need support policies and innovative technologies. Rooftop solar plus storage, for example, is the fastest growing segment of India's renewable energy market. It also has the lowest price per kWh anywhere in the world.
Retargeting costs
The Southern African Development Community (SADC) is a region in the world that has ambitious targets for renewable energy. By 2040, the region is on track to achieve full energy access and a 53% share of renewable energy capacity. These targets can be achieved with investments of close to $53 billion. However, the region has encountered some challenges along the route, such as the COVID-19 epidemic, which had a severe impact on the energy sector. This pandemic led lockdowns that impacted the entire electricity value-chain. 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.
Economic growth is affected by retargets
Many jurisdictions have adopted Renewable Energy Targets (RETs) to increase renewable energy's share in total energy production. These targets are intended to increase renewable energy and combat climate change. These targets will require significant changes to the energy system in order to be achieved. While RETs may be useful tools for policy purposes, they have many practical drawbacks.
First, targets make it easier to take action quickly. This may lead decision-makers to lose sight of the fundamental objectives. For example, the Renewable Energy Directive could lead to increased net carbon emissions and deforestation. This could result in unwise trade-offs.
Impact of re targets on carbon emissions
To cut carbon emissions, retargets have been established. However, these targets have a number of limitations. One, carbon efficiency in a region is different from one another. In China, for example, the eastern region has the highest carbon emissions efficiency while the western region has the lowest. This means that retargets are not proven effective.
It is now a pressing issue to balance economic growth and ecological management. Increasing carbon efficiency is a critical criterion for an ecologically sustainable economy. Developing renewable energy sources can help meet this objective and provide a sound basis for decision-making.