Clean energy push: Drop in solar power cost a game changer, says PM Narendra Modi

NEW DELHI: Prime Minister Narendra Modi has said that India has the potential to lead the world in the domain of renewable energy, describing the narrowing difference between the cost of solar and conventional energy as a "game changer" for the sector.

At the inauguration of a three day global conference, RE-Invest 2015, Modi on Sunday described the thrust on renewable energy production as an effort to ensure universal energy access for India's poor. He said the price of solar energy has tumbled from Rs 20 a unit to Rs 7, bringing it close to conventional power. He recalled that as Gujarat chief minister he persisted with the solar power programme even as people found it scandalous that it was generated at Rs 20 a unit, but added that prices started falling as the industry scaled up. "Now prices are in the direction of conventional electricity. This is a game changer," he said.

"We have always spoken of energy in terms of megawatt. It is the first time we're talking of gigawatt. We have no option but to make a quantum leap in energy production and connectivity," Modi said, addressing a gathering of 2,000 delegates from India and 40 other countries.

In November last year, the government set an ambitious target of setting up 170 gigawatt of wind, solar and biomass power projects by 2022. Modi talked about India working to evolve an alliance of about 50 countries with abundant sunshine to pool research and technological advancements in the field of solar energy with an aim to make power accessible to the poorest of the poor and in remotest locations. He also said that India's stress on renewable energy is not aimed at impressing the world but to meet its own energy requirements.

The prime minister stressed on the need for local equipment manufacturing for clean energy projects to generate jobs and technological innovation. Modi's stress on equipment manufacture in India is linked to his 'Make in India' campaign, through which he wants to boost local manufacture to create jobs for people.



The conference is aimed at engaging different stakeholders in developing renewable energy in the country and attracting investments of more than $100 billion (over Rs 6 lakh crore) in the sector.

India has just 33 gigawatt of clean energy capacity at present, with 22 gigawatt from wind, about 3,000 megawatt from solar energy and the remaining from small hydro and biomass projects.

India's total power generation capacity is more than 250,000 mw. Most of the electricity is generated from coal-fired power plants.