Nagpur: From RS15,740 Crore in 2017, total subsidies for renewable energy in India fell by almost 45% to RS8,577 Crore in 2020, revealing the latest studies, which highlighted the needs of the state to increase renewable energy to achieve its goals for Aatmanirbhar Bharat and Clean energy transition.
The report ‘maps Indian energy subsidies 2021: Time for new support for cleaning energy’ was released on Thursday by the International Institute for Sustainable Development (IISD) and the Energy Council, Environment and Water (CEE).
This study found that support for fossil fuels has increased, reaching RS70,578 Crore in 2020.
“This is more than seven times the amount of subsidies to clean up energy.
Subsidies for coal have not declined in 2020 and remain greater than those who can be extended , “said the report.
According to experts IISD and CEE, new funds for clean energy are very important to advance the transition that has been going on in India.
They also point to a positive trend, such as increasing subsidies for electric vehicles.
“Since 2019, electric vehicle subsidies have risen more than 2.3 times, reaching RS1,141 Crore in 2020.
This occurs due to increasing public demand for electricity mobility,” they said.
The researchers also noted that the full benefits of electrical transportation can only be achieved if there is a green mixture.
“Renewable energy subsidies are jammed due to a combination of factors, including grid scale parity and market parity, a lower level of spread, and a subsidized scheme that is close to the end of their allocation period,” the report added.
On the other hand, oil and gas subsidies jumped 16% from 2019 to 2020, mostly due to financial support for household consumption of liquid oil gas (LPG).
“However, LPG subsidies were suspended during the oil price accident of 2021 and had not been re-introduced.
It can reduce oil and gas subsidies in the coming years, but has led to new concerns around clean energy access, because there is no alternative support for clean cooking has been provided, “this study stated.
Experts emphasize that fossil fuel subsidy reform can produce valuable additional resources for economic recovery from Covid-19 and investment in clean energy.
“Directing the share of coal tax revenues to cleanse energy and communities, regions, and the livelihoods that are affected by the transition will help ensure a fair and fair energy transition,” said Co-author of Aggarwal Prateek Research from Ceek, added that the government must also encourage Public sector business, which currently invests more in fossil fuels, to set an ambitious target for a high level of investment in clean energy.
Stating that it is difficult to achieve the right energy goals without proper support policy, the author of the visit of Viswanathan from the IISD said, “It’s time for a new wave of support steps that focus on technology that appears such as integration and grid, renewable integration.
Energy, green hydrogen , and offshore winds.
India must deploy the historical level of around 39GW every year to meet the amazing target of 450GW renewable in 2030.
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Subsidies for fossil fuels still rise, funds for renewable energy falls
