Scope of cooperation between India & Germany in renewables with a focus on opportunities in the wind sector in India

Abstract

In 2015, India set itself a very ambitious task of expanding its installed base of renewable energies by more than five times to 175 gigawatt (GW) within seven years (by 2022). It was envisioned that 60 GW would be contributed by wind power. In 2018, the objective was revised upwards to 227 GW in total and 67 GW for wind power. The country needed such challenging goals to ensure an early, universal, and 24x7 access to electricity for all citizens. However, India’s per capita electricity consumption remains one of the lowest in the world. The young, aspiring and increasing population in a growing economy naturally engages in social and economic activities. As a result, the demand for electricity is increasing fast. Finally, there is a pressing need to switch from fossil fuels to renewable, replenishable and locally available resources for ensuring better energy security, reducing financial burden of energy imports, and - most crucially - for reducing carbon emissions to best protect the environment from a disastrous climate change. Wind energy has emerged as a success story in India. Today, India is leading globally on the fourth position in terms of installed wind power capacity. As a mature and cost effective technology, wind power has rapidly gained market share. The resultant economies of scale have again helped lower the costs and allowed firms to intensify innovation activity. Nevertheless, a huge market potential remains untapped, even as capacity utilization in terms of actual power generation has substantial scope of improvement. Germany is a global lead market for wind power, and renewable energies in general. It has a proven base of technological prowess and it has co-shaped the development of this industry. However, a certain saturation is setting in, as good sites for onshore wind power become scarce. There is a strong case for the two countries and their enterprises to cooperate in this sector. This case includes commercial, technological, humanitarian and environmental reasons. While there is a strong untapped potential in India and other global markets for affordable and excellent wind power solutions, technological cooperation can help in achieving affordable excellence (“frugal innovations”). Bilateral cooperation can help in realising the sustainable development goals (SDGs) in India and other developing economies of Asia, Africa and South America, in the process leading to a better life for millions, if not billions, of people. Finally, the environment and the biodiversity of our planet is at stake. Many of our non-human cohabitants are as severally, if not worse, affected by the human-intensified climate change, which potentially may threaten the existence of life itself on the planet if left unchecked. This study proposes an “IDEA” framework for Indo-German bilateral cooperation in wind sector that encompasses all relevant stakeholder in the value chain. The acronym stands for “Invest, Develop, Establish and Apply”. If implemented, this framework can help in creating affordable, green excellence with a win-win-win component for the countries involved, for human welfare, and for the environment.