Renewable Energy Development in India: A Macro Analysis

Ganapathy R S

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

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-systemic features of the renewable energy system and its embeddedness 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 of renewable energy indicates that technological and social actions 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 adjustments (in terms of changes in mix of economic activities) and hence changes in energy intensity an growth rate. Technological responses like development of energy efficient renewable energy using equipment 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.

Date: 1984-04-01
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