New Delhi
India’s renewable energy share could expand to 13 percent of the primary energy mix by 2050 if there is strong policy implementation and resolution of structural bottlenecks, according to Gauri Jauhar, Consulting Executive Director at S&P Global Commodity Insights.
Speaking exclusively with ANI, Jauhar said, “Renewable energy outlook depends on the scenario we undertake. So in our base case scenario, still see fossil fuels as remaining foundational to our energy mix to the extent of about 67 percent. But if in a very greening scenario, if we see a lot of concerted push on policy implementation, solving some of the structural bottlenecks on rights of way, transmission expansion, connecting up the grid, making the green energy corridors actually work, and a huge impetus on state level implementation, then we do see the possibility of renewables expanding to as much as 13 per cent of India’s primary energy mix by 2050.”
On nuclear energy, she noted that progress remains slow due to liability issues and cost factors.
“Nuclear energy is a very complicated story because of structural factors related to liabilities, the extent of liability and also how different the nuclear operator, the supplier and the government, how they share the liabilities. So I think that is something which still has to be solved. It has to be simplified. It has to be made more transparent and it has to be made safety. Safety is paramount,” she explained.
While globally there is a push towards small modular reactors (SMRs), she added that the technology is still three times more expensive than India’s current pressurized heavy water reactors and remains commercially unviable and unproven.
“So there is a huge push towards SMRs globally. We see that push coming to India as well. But at this point in time, that technology is still to be commercially proven. It’s three times the cost of India’s current pressurized heavy water reactors. So for deployment, nuclear to enter through SMRs into the merit order will be a tall challenge at the moment.” she said.
On the role of private investment in the renewable energy sector, Jauhar said funding choices will depend on investor objectives.
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“If investors’ objective function is to look at growth over value including stock market returns over value like dividend payments etc and returns in capital employed, then one could look at the renewable stocks far more for investment purposes. So I think it really depends upon what is the objective function of the source of private capital we’re looking at.’ Jauhar noted.
