Renewable Energy Development in India: A Macro Analysis

Abstract

The Development of renewable energy in India is not simply a technical question. The macro-analysis attempted here reviews the complexity, interdependence and the structural-systematic features of the renewable energy system and its embedded ness in larger contexts. The need for a comprehensive policy package that addresses need and supply, technology and institutions, environment and education, pricing and substitution and local conditions and standards is thus necessary but is yet to evolve. The political economy is renewable energy indicates that technological and social action are simultaneously called for. The market, the state and the community must play balanced roles and articulation of this balance in renewable energy is a strategic question for India. The macro-analysis shows the need for structural adjustment (if term of changes in mix of economic activities) and hence changes in energy intensity and growth rate. Technological responses like development of energy efficient and renewable energy using equipments or interfuel substitution are not sufficient to promote renewable energy use. Hence a micro or project approach is not enough in renewable energy planning. A macro-analysis may help us to understand and possibly transcend the structural barriers. This paper explores some dimensions of this complex issue of renewable energy development and proposes some strategies.