The energy crisis all over the world has forced countries to be alert and invest wisely in the energy sector. Most countries are bringing new technologies and investing in innovative methods to utilize renewable energy sources. India is also included in the top list of countries investing in energy transition technologies. Recently, United Nations (UN) reported that China, India, Japan, the US, and Europe together invested in energy transition technologies in 2021, which is eighty-four per cent of nearly $1 trillion. This report was presented in the third brief of the Global Crisis Response Group (GCRG) on Food, Energy, and Finance.
During the pandemic, there was a fall in investment in the past few years from $8.4 billion to $6.4 billion in 2020-21. But after the pandemic, investment in renewable energy has made a good comeback.
It was reported that the significant solar energy investments were made in 2021-22 through acquisition, while the others were through bonds, debt-equity, and other assets. Further
The report also states that to reach an equitable renewable energy transition, it is necessary to reach $4 trillion-$6 trillion in annual investments. The COVID pandemic further made the gap broad to achieve the energy targets.
The other estimation was about the World Food Program, which stated that about 345 million people would face food insecurity in 2022 in over 82 countries due to the pandemic and the Russian-Ukraine crisis. It will give rise to over 47 million people suffering from hunger.
The energy market in India
Even after the pandemic, the investment growth is not at the expected level, but expanding to reach the targeted group is still necessary. Rapid growth in renewable energy will help to meet the power requirement. Apart from this, it is required to reduce dependency on fossil fuels. The role of government is also vital in increasing investment in the energy sector. Policies and reforms by the government drive more investment avenues in the energy sector.
Regarding energy policies, it should be seen that there is a balance between urgent needs and long-term sustainable development. The role of government in such situations is very crucial. It is the government's responsibility to frame appropriate energy policies and measures by minimizing the demand for energy in developed parts. When the volume of investment goes high in renewable energy, it helps it flourish further. Settings up of new renewable power projects, manufacturing modules, cells, and promoting solar energy equipment and devices can be upgraded with more investment in the renewable energy sector.
India is still at the developing stage in the renewable energy sector. Many states in India have shifted to green energy solution by switching off fossil fuels. Experts say that India has enormous potential in the renewable energy sector. It can be fully exploited by investing in modern energy technology. The energy demand is growing with the population's growth, which can be met by investing in renewable energy resources. The significant challenge we face in renewable energy is access to clean energy technologies. Financial resources and government support are essential factors that also help to drive solar energy investment. It is high time India has to work on the entire ecosystem around renewable energy.
