The Indian government has embarked on many large scale renewable energy projects that are predicted to enable the world’s second most populous country to surpass its commitment to cut carbon emissions. According to a recently released report from Moody’s, 45 percent of all energy produced in India will be from non-fossil fuel sources by 2022. This is impressive, considering India only committed to 40 percent non-fossil fuel sources under the international Paris Agreement in 2015.
Although coal remains the largest energy source, the aggressive additions of renewable sources will decrease coal’s overall contribution.
Moody’s report, “Power Asia – Climate goals, declining costs of renewables signal decreasing reliance on coal power,” focuses on the role of investors in the energy industry as well as predictions for investments.
“There is a realization that renewables are quicker, cleaner, cheaper and also strategically in India’s interest because of energy security; it just makes financial sense to invest in renewables,” Sameer Kwatra, from the Natural Resources Defense Council, said.
The Indian government has invested in large scale wind, power and solar projects, including tripling its solar power capacity in three years.
Much of the increase in renewable energy has been due to decreased prices in renewable technology and interest from private investors. If battery production and storage capacity also increase, the report expects that renewable energy sector growth could spike. Similarly, banks and private investors are under increased pressure to withdraw investments in fossil fuel companies and pipeline projects.
Despite the fact that investments in renewable energy have been higher than fossil fuel investments for three years in a row, the coal industry is still growing steadily alongside the renewable industry, with Indian populations using more electricity annually.
India’s success is a considerable achievement for the entire world. After the U.S. and China, India is the largest contributor of greenhouse gases.
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