Study On Covid 19 Impact On Renewable Sector

Study on Covid-19 impact on Renewable sector –
Make in India Solutions report
Introduction :
Before we move onto the impact analysis of corona virus on Renewable sector ,lets
see the facts and status of this sector before the arrival of Covid19.
 22000 crore has been allocated to power and renewable sector with the
government propagating smart meters giving consumers the choice to choose
their distributors.
 In 2018, the world renewable energy generation capacity was 2,351 GW.
 India has the 4th largest wind power and 5th largest solar capacity in the
world.
 The target of National Solar Mission was 100 GW of grid connected solar
power by 2022.
 India’s estimated renewal energy potential stands at 1,096 GW from

commercially exploitable sources of which 80 percent is solar and 8-10 % is
wind.
 India is the 4th largest importer of oil and the 15th largest importer of
petroleum products and Liquefied Natural Gas (LNG) globally so there is a
need to reduce the import bill
 At Paris Accord on Climate Change, the Government of India has set a
target of adding 175 GW of renewable power by 2022, offering tremendous
opportunities.
Impact Analysis of COVID19
 Top 5 Solar energy companies all over the world are in china and have
stopped their manufacturing due to corona virus. Top Indian Renewable energy
companies also import their parts from china, Thus the supply chains globally
have been impacted. The virus vaccine may come within 1-2 years. Till then
there would be stress on the sector due to lack of huge investment . The oil
prices were reduced considerably due to Russia and Saudi Arabia price war.
The prices further fell due to lack of demand due to international lockdown in
many countries. Thus there is a good incentive for companies and entrepreneurs
to invest in renewable energy sector to realise good margins.
There was a great consensus building up pre covid19 era that we were heading
towards tipping point in global climate change . During lockdown ,air quality
improved considerably and people who suffered respiratory problems due to air
pollution had severe illnesses due to corona virus affecting their respiratory
system. Thus governments and citizens can push for greater energy sourcing
from renewables as compared to coal and oil. There has been a greater
awareness regarding climate and its impact on health. Governments can push
and boost the renewable sector as a result. Due to social distancing the
government contracts are on hold and projects that are under construction are
paused, Thus drying the sector as well as the economic engine.
Solutions for recovery
1. The government has decided to inject money to generate employment so

that people get money in their hands.it should smartly fund the areas that
will create long term sustainable assets in renewable sector thus reducing
the future fossil fuel import dependency. Moreover since many migrant
labourers have returned back to the rural areas ,heavy employment can be
generated through MGNREGA scheme where the labour can be use to
create assets in renewable energy domain.
2. Self reliance message must be given by government so that India can
fulfil its own domestic needs through solar ,wind and biomass power.
3. There should be diversification of supply chains and over reliance on
Chinese companies should be countered with continuing duties .
4. Lithium ores used for batteries should be sourced from foreing countries
in bulk to buffer for future increase in prices and also so that we can store
power for energy crises.
5. There have been lot of interest in Electrical vehicles and Charging
stations but unlike many countries ,India is underutilising its potential.
There must be swift shift to EV charging stations that would be supplied
power through renewable sources.
6. There is always huge problem in lad acquisition for constructing solar
panels and windmills. There is genuine mistrust due to old dues not being
paid to land owners for the lands that were acquired by government.
7. Massive work needs to be done in terms of reducing corruption as that
spoils the reputation of the economy as disheartens foreign investors from
entering and investing their wealth.
8. The government needs to keep the sentiments in the renewable sector
strong by keeping incentives that increases the margins of companies.
9. Demo villages or towns need to be created and marketed and popularised
that are fully zoned in and working on renewable energy thus inspiring
others to follow suit. This will save Grid and transmission problem
scenarios and add the countries funds.
10.Many traditional companies like NTPC are already acquiring renewable
energy companies adding thot hoer energy diversification mix, thus
special incentives should be given to energy companies to invest in
renewable sector.
11.Gst rates should be slashed for solar and wind power companies in
India ,just like it was done for Electrical vehicle companies from 12% to
5% ,this would remove uncertainty.
12.Government should go ahead with using Railway track land to be used
for solar power generation.
13.Pension funds worldwide shall get incentives for investing in renewable
sector.
14.Discontinuing of old thermal power plants should be facilitated.
References :
Make in India website
Union Budget 2020
By -Sumeet Kant Kaul

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Study on Covid-19 impact on Renewable sector –

Make in India Solutions report

 India’s estimated renewal energy potential stands at 1,096 GW from

Impact Analysis of COVID19

Solutions for recovery

1. The government has decided to inject money to generate employment so

By -Sumeet Kant Kaul

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