The Renewable Energy Scenario In Karnataka: A Financial Analysis Of Its Sustainability.

Abstract

Renewable energy sources have been around for centuries. Technologies which help human kind to harness them have been recently developed. India’s economy is rapidly growing and hence there has been severe electricity shortage in the country. To sustain the growth of the economy, India will need to increase its electricity generation at least five times its current generation. There is a pressing need to increase energy efficient devices and to harness new and non-conventional sources of energy so as to electrify those areas of India which have been in dark for centuries. The power sector contributes a lot to the country’s greenhouse gas emission (GHG). Switching to renewable energy and accelerating its development is indispensable if India wants to reduce its GHG emissions. For a country like India, with huge regional inequalities and imbalance in resources, expanding the scope of renewables can also act as a catalyst for regional growth. A lot of underdeveloped states have potential for development of nonconventional resources. Investment in renewable technologies is the need of the hour if India seeks to become a top player in the world. It has been observed that renewable energy in India is not financially viable. Many private developers hesitate to invest in renewable energy because of its low returns and heavy investment. A significant amount of subsidies are required to achieve parity between renewable energy sources and coal based power plants. Keeping in view the above points, the research focuses on the state of Karnataka to study the existing scenario of renewables and the policy framework for the same. Karnataka was one of the pioneers in renewable energy policy development. A benefit cost analysis of biomass plants has been done to determine if replacing conventional, thermal energy with biomass plants would be beneficial to the state, and the future public investments for the same, based on current trends of budgetary expenditure. An analysis of the policy framework has also been done to recognise the emphasis areas of Karnataka’s renewable energy policies.