In 1982 the department of non-conventional energy sources was set up, and then it grew into a full-fledged ministry. Yet
20 years later, there are more than 80,000 unelectrified villages in India today, 18,000 of which cannot be connected to the central grid.
Renewables (solar, wind, biomass and hydropower) hold the key to our energy needs in the future. What is the problem in rapidly spreading this technology? It is more than just lack of money or investment - our fossilized bureaucracy will have to meet its own targets to begin with.
Solar energy is by far the best option for remote areas where connection to the power grid is not viable. Researchers are working to reduce the cost and increase efficiency of solar cells. But till a technological breakthrough is achieved, there will be no mass production and solar energy will remain viable only for inaccessible areas. Solar cookers failed mainly because the ministry focused on design specification, rather than performance.
Biogas is clean, cheap and efficient, and it is a proven technology. But the water intensive nature of biogas is a hurdle in areas with water scarcity. Besides, most of the biogas plants lack proper maintenance.
The economic viability of wind energy has been established. Since the technology is now mature, the urgent need is for policy intervention to make the sector grow.
As far as Hydro power is concerned, the government only likes big projects, but ignores small ones. Transmission costs (connecting to the network of distant grids) make this energy source costly. Water mill — commonly found across the Himalayas — should be upgraded to generate power.
Why are renewables unable to penetrate the market?
Subsidies on fossil fuels make renewables uncompetitive.
Regulations are a bottleneck.
Entrepreneurs cannot sell the electricity they generate except to the government.
Energy is not seen as an integral part of the rural development matrix.
Misguided incentives can hinder development, and lead to corruption and tax-evasion.
Financial institutions have failed to make these technologies viable for poor people living in remote areas.