India going green big time

[sayak83]

Indian government just announced its annual budget for this year. It has pledged massive investments in all sectors of green energy this year including

35,000 crore (about 4000 million dollars) for renewables and net zero energy transition
20,000 crore (about 2500 million dollars) for renewable hydrogen production
20,000 crore (about 2500 million dollars) on integration of renewables into the grid.
Here is the link with details

Budget 2023 | What are the Centre’s initiatives for ‘Green Growth’ and energy transition?

 

[Nakosis]

Indian government just announced its annual budget for this year. It has pledged massive investments in all sectors of green energy this year including

35,000 crore (about 4000 million dollars) for renewables and net zero energy transition
20,000 crore (about 2500 million dollars) for renewable hydrogen production
20,000 crore (about 2500 million dollars) on integration of renewables into the grid.
Here is the link with details

Budget 2023 | What are the Centre’s initiatives for ‘Green Growth’ and energy transition?

Good news for the energy companies I suppose and individual investors to know that an influx of cash is coming from the government.
I would think of a means to recover some of that investment through tax revenue though that would likely just be passed on to consumers.

Perhaps maybe the thought is that this will somehow stimulate the economy thereby increasing general tax revenue.
Likely though just extra money for the energy companies.

 

[Twilight Hue]

Indian government just announced its annual budget for this year. It has pledged massive investments in all sectors of green energy this year including

35,000 crore (about 4000 million dollars) for renewables and net zero energy transition
20,000 crore (about 2500 million dollars) for renewable hydrogen production
20,000 crore (about 2500 million dollars) on integration of renewables into the grid.
Here is the link with details

Budget 2023 | What are the Centre’s initiatives for ‘Green Growth’ and energy transition?

Catch is how expensive for people is it going to be?

India isn't a rich country for the common citizen there as far as I know.

 

[exchemist]

Good news for the energy companies I suppose and individual investors to know that an influx of cash is coming from the government.
I would think of a means to recover some of that investment through tax revenue though that would likely just be passed on to consumers.

Perhaps maybe the thought is that this will somehow stimulate the economy thereby increasing general tax revenue.
Likely though just extra money for the energy companies.

You ignore, for some reason, the whole purpose of this initiative. It's not "just" money for energy companies, nor is it chiefly about economic stimulation.

There is also the not exactly trivial matter of decarbonising the economy of one of the world's most populous countries.

 

[Nakosis]

You ignore, for some reason, the whole purpose of this initiative. It's not "just" money for energy companies, nor is it chiefly about economic stimulation.

There is also the not exactly trivial matter of decarbonising the economy of one of the world's most populous countries.

Doesn't really matter if I ignore it does it since it is on top of just about everyone's mind. I'm just pointing out that someone always benefits from these decisions.

Smart people will always find a way to benefit from any current crisis and make people feel good about it when they do.
I'm just admiring the business savvy. Energy companies are working toward this anyway. However, they are getting the tax payers to fund it and they'll keep the profits.
Outstanding capitalism.

Though I would ask what kind of oversight is in place. A lot of times this kind of money isn't exactly spent to the benefit of the public. Especially when politicians get bribed to overlook that kind of thing.

But hey, as long as people feel good about it, no need to worry about the details.

 

[exchemist]

Doesn't really matter if I ignore it does it since it is on top of just about everyone's mind. I'm just pointing out that someone always benefits from these decisions.

Smart people will always find a way to benefit from any current crisis and make people feel good about it when they do.
I'm just admiring the business savvy. Energy companies are working toward this anyway. However, they are getting the tax payers to fund it and they'll keep the profits.
Outstanding capitalism.

Though I would ask what kind of oversight is in place. A lot of times this kind of money isn't exactly spent to the benefit of the public. Especially when politicians get bribed to overlook that kind of thing.

But hey, as long as people feel good about it, no need to worry about the details.

What then do you think is better way to accelerate the pace of decarbonisation, beyond what market forces can achieve on their own? If you want it go faster, you have to provide an incentive of some sort, don't you? And who, apart from the energy companies, is going to do it?

 

[Vinayaka]

Indian government just announced its annual budget for this year. It has pledged massive investments in all sectors of green energy this year including

35,000 crore (about 4000 million dollars) for renewables and net zero energy transition
20,000 crore (about 2500 million dollars) for renewable hydrogen production
20,000 crore (about 2500 million dollars) on integration of renewables into the grid.
Here is the link with details

Budget 2023 | What are the Centre’s initiatives for ‘Green Growth’ and energy transition?

While travelling across the dry plains of South India 10 years ago, we saw a ton of wind turbines. Most likely Rajasthan has huge potential. So too for solar.

 

[Nakosis]

What then do you think is better way to accelerate the pace of decarbonisation, beyond what market forces can achieve on their own? If you want it go faster, you have to provide an incentive of some sort, don't you? And who, apart from the energy companies, is going to do it?

I'd go with science and education. The more minds working on a problem the better and investing in science is usually not profit motivated.
And I'm not saying India is wrong for doing this just keeping in mind it will benefit the already wealthy energy companies.

Also it could certainly be pointed out what if any oversight was put in place. That would refute my doubts. Didn't see anything about it in the article.
I've learned from experience that throwing money at a problem is no guarantee of getting the problem solved. That's kind of what governments tend to do though.

 

[Twilight Hue]

Doesn't really matter if I ignore it does it since it is on top of just about everyone's mind. I'm just pointing out that someone always benefits from these decisions.

Smart people will always find a way to benefit from any current crisis and make people feel good about it when they do.
I'm just admiring the business savvy. Energy companies are working toward this anyway. However, they are getting the tax payers to fund it and they'll keep the profits.
Outstanding capitalism.

Though I would ask what kind of oversight is in place. A lot of times this kind of money isn't exactly spent to the benefit of the public. Especially when politicians get bribed to overlook that kind of thing.

But hey, as long as people feel good about it, no need to worry about the details.

Yep. It's universally always about money and making money.

They don't do it out of charity or concern. Some individuals perhaps, but never the collective no matter what country.

 

[sayak83]

Good news for the energy companies I suppose and individual investors to know that an influx of cash is coming from the government.
I would think of a means to recover some of that investment through tax revenue though that would likely just be passed on to consumers.

Perhaps maybe the thought is that this will somehow stimulate the economy thereby increasing general tax revenue.
Likely though just extra money for the energy companies.

The money is being partly funded by cuts in fossil fuel subsidies. Actually, taxes have been cut for all income brackets as well. This is happening as more people are becoming eligible for taxation due to rising prosperity. Hence the tax revenues are increasing year to year regardless.

 

[sayak83]

Doesn't really matter if I ignore it does it since it is on top of just about everyone's mind. I'm just pointing out that someone always benefits from these decisions.

Smart people will always find a way to benefit from any current crisis and make people feel good about it when they do.
I'm just admiring the business savvy. Energy companies are working toward this anyway. However, they are getting the tax payers to fund it and they'll keep the profits.
Outstanding capitalism.

Though I would ask what kind of oversight is in place. A lot of times this kind of money isn't exactly spent to the benefit of the public. Especially when politicians get bribed to overlook that kind of thing.

But hey, as long as people feel good about it, no need to worry about the details.

Throwing money at the problem usually works. This is the growth of solar capacity in India over the last years.

 

[sayak83]

I'd go with science and education. The more minds working on a problem the better and investing in science is usually not profit motivated.
And I'm not saying India is wrong for doing this just keeping in mind it will benefit the already wealthy energy companies.

Also it could certainly be pointed out what if any oversight was put in place. That would refute my doubts. Didn't see anything about it in the article.
I've learned from experience that throwing money at a problem is no guarantee of getting the problem solved. That's kind of what governments tend to do though.

Indian energy markets are almost entirely government regulated. The government provides subsidized prices of electricity to most rural and semi-urban markets. Which is good, but that means there is no price signal from the market at all. So private companies sell their electricity directly to the government and the state at some agreement-based prices based on contracts that can be renegotiated. What usually happens in the case of new technology is cost-sharing...ie the govt funds say 40% of the cost and the private player 60%. The private player is expected develop the plant or technology and sell the electricity (or green hydrogen whatever) to the govt upon the completion of the project for a certain period of time based on negotiated prices. The contract is given to the lowest bidder for these kind of projects and there will be penalties for not delivering.

I agree that there is quite a lot of corruption that happens in these cases...but if it were not solar or wind, it would have been coal and there the corruption is far far worse based on past experiences.

Indian coal allocation scam - Wikipedia

So its is objectively better if the money goes to a solar or wind company than a coal magnet

 

[JIMMY12345]

The Economist points out:

India has Monsoons so solar is effective in 8 out of 12 months
Currently 80% of India's energy is oil,coal and fuel.
Really it depends on business as the Economit pooints out you have the 3 big ones Reliance,Tata and JSW.
India is a bit like Russia connections with Politicians speed up projects that would be bogged down in red tape.
HOWEVER JUST LIKE USA AND CHINA AND RUSSIA HOW MUCH DEBT can state banks cope with.