‘Green Energy’ may be expounded as that subset of energy that originates from such renewable energy, which is found to be sustainable, clean, and replenishable, hence, generating non-toxic greenhouse gases within the atmosphere and barely causing any non-viable environmental impact. Predominantly, India uses the energy produced by solar, wind, and hydro forms of energy; however, biogas, geothermal, and biomass are the ancillary forms of energy. From the standpoint of an apparent climate change across the globe, it is abundantly clear that the use of fossil fuels as a form of energy source is a persisting threat, which is heightening at an alarming rate. Overcoming the same is a gargantuan challenge, for which shifting to green energy is seemingly the only viable solution. India, the world’s third-largest energy-consuming country, meets 60% of its energy demand through coal, oil, and solid biomass[1]; thus, it endeavours to use green energy to accomplish its target, i.e., net zero mission by 2070[2]. In this quest, the Government of India has also targeted to reach 175 GW of installed renewable energy and set up its capacity of 450 GW by 2030.[3]
The Central Government has been taking certain steps for the endeavoured transition. It has even launched the ‘Production Linked Incentive Scheme’ to develop the manufacturing sector to produce raw materials required for renewable energy. Additionally, the Central Government in 2019 also launched a scheme, namely, ‘Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan’ (‘PM KUSUM’), that aims to endow the farmers with water and financial security through harnessing solar energy capacities of 25,750 MW. In 2015-16, the Ministry of New and Renewable Energy (‘MNRE’) launched ‘The Green Energy Corridor’, which aims to synchronise the power generated from renewable energy with the conventional National Grid of India. It also aims to build an infrastructure to extract excess energy produced by some states and to transport it to energy deficient areas. Thus, India is working towards the commitment made in the Paris Agreement 2016 to produce 50% of total electricity generation from renewable resources at the earliest.
Apart from the abovementioned initiatives, the Electricity Act, 2003 (“Electricity Act”) is the principal legislation in India that regulates electricity (including renewable energy). Since electricity falls within Entry 38 of List III (Concurrent List) of the Seventh Schedule of The Constitution of India, both Central and State Governments can enact laws on it. However, if a conflict arises between the two, the Central law will take precedence over the State law. Statutory definition of Renewable Energy is provided in the Central Electricity Regulatory Commission (Terms and Conditions for Tariff Determination from Renewable Energy Sources) Regulations 2020 issued under the Electricity Act. Herein, Renewable Energy is defined as the electricity generated from renewable energy sources.[4]
Given the initiatives taken by the Central and State Governments, notwithstanding the challenges and inter-se disputes, it is only a matter of time, that India reaches its goal of zero carbon footprint even before 2070. Although India has the fastest growing rate of renewable electricity growth amongst any major economy[5], it is still not at par with many other countries that have developed their renewable energy sector rather rapidly. To draw a comparison, Morocco has developed renewable energy projects that now contribute almost 40% of its installed energy capacity, and it is targeted to exceed 50% by 2030[6]. Kenya has installed the highest number of solar power systems per capita[7] and is the first African country to use geothermal power, and has installed the largest power plant in Africa.[8] Further, the Philippines, being an archipelago, generates 30% of its power from renewable energy and is one of the largest geothermal energy[9] generator. Interestingly, Brazil uses 84% of its electricity produced by renewable energy. Costa Rica uses 99% of its energy from renewable sources and is enormously investing in windmill technologies whereby achieving its goal of making itself the world’s first carbon-neutral nation.[10]
Let us now examine the challenges and disputes which perhaps hamper the rapid growth of India’s renewable energy sector. In as much as lack of a proper centralized regulatory and policy framework that differs from State to State, lack of inadequate inter-institutional cooperation, lack of adequate or established research centers for creation and maintenance of renewable infrastructure, lack of initiatives regarding financial aid for renewable energy projects, lack of adequate fund allocation in the annual budget, lack of requisite manpower and skillset, are some of the many challenges that create spokes in the wheel vis-a-vis India’s growth in the green energy sector.
These challenges leave a conundrum and eventually lead to disputes, given the fact that the sector is magnanimous, multifarious, and capital-intensive with long investment intervals. Renewable energy projects require enormous tracts of land. Accordingly, the area chosen for those projects typically pertains to either the common land used by the community or the property that authorities identify as a ‘wasteland’.
In Azure Power Pvt Ltd. v. the State of Assam[11], there was a conflict concerning the land that has villages comprising Karbi and Adivasi communities, and the land was sold to Azure Power. The Hon’ble Guwahati High Court ordered the company to suspend the land acquisition bid and directed the Nagaon administration to stop any construction activity on the land. Hence, stay was put on transfer of land for solar energy project, thus, leaving the project in the doldrums.
Similarly, In M/s. Suzlon Infrastructure Services Ltd. V. State of Kerela And Another[12], 31 wind turbines were installed in Attappady, Palakkad district of Kerala. Sarjan Realities took a lease of Adivasi land in the Nilgiri Biosphere Reserve and installed windmills for Suzlon Energy Limited. Suzlon announced that the power generated would cater to the needs of the people living there. However, the Kerala Tribal Land Act, 1975 declared that the tribal land could only be sold to tribals, and that too under unavoidable circumstances. In 2011, the Hon’ble Kerala High Court ordered the Government to take over the tribal land occupied by Suzlon. Later, the farms were sealed, and towers were ordered to be removed. Thereby putting a jolt to turning the Pallakad District into an area run by renewable energy.
In Adani Green Energy Ltd. v. Uttar Pradesh Electricity Regulatory Commission,[13] the Appellate Tribunal for Electricity found the action of State entities as unjust, arbitrary, and unlawful. There was a call for bid by Uttar Pradesh’s New Energy Development Authority for the request proposal for supplying 215 MW of solar power to the State by companies involved in this sector. Adani Green Energy had bid for 50 MW at Rs. 8.44/kWh. After receiving the approval of selection, the State took an extremely long time to provide transmission infrastructure, and no reason was given by them. Although, the contract expressly provided for another outcome in the event of such delays, the entity was not given a formal extension for the project’s scheduled commissioning date, instead received a notice of termination after the original date. The delay proved costly, and the State regulators virtually imposed a price of Rs. 5.02/kWh, resulting in a loss to the entity in question.
Thus, it is evidently clear that in addition to the aforementioned challenges, the regulatory and judicial framework is not ably assisting the growth of India’s renewable energy sector. This is failing the vision and mission India has set itself for turning itself into a crown jewel of world’s green energy producer.
If in the event India is able to tackle the challenges and resolution of disputes not only well but also on time, it would be able to attract more investment from private entities and aid India in its mission to radically move to Green Energy. The renewable energy sector has tremendous potential and growth opportunities as there is a wide scope for the private sector to carry out businesses, as this can harness high returns on their investments. It is a comparatively low maintenance sector compared to traditional sources; hence the return on investment is even higher. Being a cleaner source, it benefits the environment by reducing pollution, which impacts climate change. The Government’s objective towards a self-reliant India or ‘Aatmanirbhar Bharat’ is bound to offer ample encouragement and confidence to the private sector to invest in the potential opportunities being bestowed upon it and thereby create employment opportunities[14]. The concept of ‘Last-Mile Connectivity’ can be achieved by this sector as it can be decentralised, and the power plants can be installed in remote areas where the stretch of primary transmission grid is not feasible. This will not only improve the population’s standard of living in widespread areas but also generate employment and development in far-flung areas. Thus, a liberal and harmonious approach would serve as a dual-purpose engine in generating value for private sector entities along with overall development, which will draw more entities to this sector, ensuring faster and more rapid growth, which presently remains with only a handful of entities.
To attain sustainable living, fossil fuels have to be a thing of the past, and Green Energy, a thing of the present and future, for sustainable living. Undoubtedly, Green Energy appears to be becoming a part of the future world, offering cleaner substitutes. Culturally speaking, even the Indian traditional values tend to teach us lessons about respecting and caring for the environment. The ‘Atmanirbhar Bharat’ campaign encourages domestic manufacturing by becoming self-reliant and curtailing dependency upon other nations. Such an approach is likely to give a boost to the Renewable Energy Sector, and the Government is also efficiently working on this sector by introducing and implementing new schemes and policies. Undoubtedly, Renewable Energy is becoming an attractive alternative as efficiency and reliability are progressively increasing but transitioning is expensive and challenging. The Green Energy supply chain needs to be expanded in other countries, rather than just being narrowed to developed countries. Encouragement of university-level innovations and research in Green Energy can not only help in cost-effective energy solutions, but can also lead to a shift from the traditional method of education. Concentrating more on green transport will increase the use of green energy and be cost-effective for the public. It is agreed that the advantages of Green Energy eclipse the disadvantages, but will we be able to overcome the limitations in time and continue evolving? Thus, in search of the overall good and destressing the already hard-pressed energy resources, the initiatives taken by the present Government have only proved beneficial. If the aforementioned challenges are duly ironed out, it will not be very long to see India being the flag bearer of a pioneer in Green Energy.
References
[1] Renewable Energy in India, Ministry of new and Renewable Energy, 9th Sept, 2022, available at https://pib.gov.in/FeaturesDeatils.aspx?NoteId=151141&ModuleId%20=%202.
[2]See,https://www.investindia.gov.in/sector/renewableenergy#:~:text=Renewable%20energy%20sources%20have%20a,in%20India%20is%20151.4%20GW
[3] Ibid.
[4] CERC (Terms and Conditions for Tariff Determination from Renewable Energy Sources) Regulations 2020, Regulation 2(1)(w), available at www.cercind.gov.in/2020/regulation/159_reg.pdf
[5] These developing countries are leading the way on renewable energy, World Economic Forum, 04.07.2022, https://www.weforum.org/agenda/2022/07/renewables-are-the-key-to-green-secure-affordable-energy
[6] Renewables are the key to green, secure, affordable energy, World Bank blogs, 21.06.2022, https://blogs.worldbank.org/energy/renewables-are-key-green-secure-affordable-energy?cid=ECR_TT_worldbank_EN_EXT/?cid=SHR_BlogSiteTweetable_EN_EXT
[7] Daniel M. Kammen, The Rise of Renewable Energy, available at http://rael.berkeley.edu/old_drupal/sites/default/files/old-site-files/2006/Kammn-SciAm-Renewables-9-06.pdf
[8] Kenya’s renewable energy sector attracts foreign interest, Victoria Rubadiri, 08.10.2012, available at https://web.archive.org/web/20131105071350/http://en.ccchina.gov.cn/Detail.aspx?newsId=38323&TId=97
[9] Agaton, C.B. Use coal or invest in renewables: a real options analysis of energy investments in the Philippines. Renewables 5, 1 (2018). https://doi.org/10.1186/s40807-018-0047-2
[10] Costa Rica’s Renewable Energy, international trade administration, 01.11.2022, available at https://www.trade.gov/market-intelligence/costa-ricas-renewable-energy
[11] Azure power forty Ltd v. The state of Assam (2021) SCC Online Gau 491
[12] M/s. Suzlon Infrastructure Services Ltd. V. State of Kerela and Another (2010) SCC OnLine Ker 4028
[13] Adani Green Energy Ltd. v. Uttar Pradesh electricity Regulatory Commission (2022) SCC Online APTEL 114
[14]India’s renewable energy sector can employ 1 Million people by 2030 : study, The Economic Times, 27.01.2022, https://economictimes.indiatimes.com/industry/renewables/indias-renewable-energy-sector-can-employ-1-million-people-by-2030-study/articleshow/89155667.cms?from=mdr
