Towards Re 1/Unit Electricity

 

Powering India's Prosperity: Towards Re 1/Unit Electricity Through Innovation and Strategic Policy

The dream of affordable and accessible energy for all Indians is within reach. Recent reports, such as the one by Firstpost

 (https://www.firstpost.com/india/experts-reveal-how-per-unit-electricity-cost-in-india-could-fall-as-low-as-rs-1-13880518.html), 

highlight the imminent solar energy transformation in India, with experts predicting per-unit electricity costs potentially plummeting to a mere ₹1-2 in the coming years. 

This echoes the vision I laid out in my earlier reflections on achieving ₹1/kWh solar power (https://myblogepage.blogspot.com/2017/08/solar-power-at-rs-1-per-kwh.html).

The Firstpost article rightly emphasizes that this revolution hinges on bold innovation, particularly in enhancing the efficiency of solar technology and scaling up domestic manufacturing across the entire value chain – from modules to wafers and silicon. 

The groundbreaking research in perovskite solar cells at institutions like IIT Bombay, achieving near 30% efficiency, offers a glimpse into this promising future.

However, as the article also points out, India needs to bridge the gap between academia, industry, and policymaking. We must foster a robust ecosystem for solar research and development, perhaps by establishing specialized centers with significant investment, akin to the successful models seen in countries like Germany.

Learning from Germany's Success: The Power of Near-Zero Electricity

My 2017 blog post, "Free Electricity Possible"

 (https://myblogepage.blogspot.com/2017/12/free-electricity-possible.html),

- explored the profound impact of near-zero electricity costs on the German economy. As observed, lower energy prices translate to reduced manufacturing and service delivery costs, making industries more competitive globally. The increased affordability of operating industrial robots encourages automation, further driving down production expenses and potentially leading to a more skilled workforce in robot manufacturing. This virtuous cycle contributes significantly to Germany's economic prosperity.

A Synergistic Approach for India: Combining Innovation with Strategic Policy

To realize the ₹1/unit electricity target and unlock similar economic benefits for India, we need a two-pronged approach that synergizes the technological advancements highlighted in the Firstpost article with strategic policy interventions. 

Building upon my earlier suggestions, I propose the following:

1. Prioritize and Invest in Solar Research and Development: 
2. 
   
3. Following the recommendation in the Firstpost article, the government should actively fund and establish specialized solar research centers, fostering collaboration between academic institutions and industry players. We must aim for breakthroughs in efficiency and storage technologies.

1. Incentivize Domestic Manufacturing Across the Value Chain: 
2. 
   
3. While India is already making strides in this direction, consistent policies that encourage the development of the entire solar manufacturing ecosystem – from raw materials to finished products – are crucial for energy independence and cost competitiveness.

1. Create a Favorable Policy Environment for Adoption: 
2. 
   
3. This includes streamlining regulations, promoting net metering for rooftop solar, and ensuring grid stability to accommodate the increasing influx of renewable energy.

1. Explore Innovative Financing Models: 
2. 
   
3. While my 2017 suggestion of a temporary investment amnesty might have been a specific context, the core idea of reducing the capital burden remains relevant. We could explore innovative financing mechanisms and public-private partnerships to lower the cost of deploying solar projects.

1. Focus on Universal Access and Grid Modernization: 
2. 
   
3. As emphasized in the Firstpost article, democratizing access to solar energy is key. This necessitates investments in grid modernization to handle distributed generation and ensure reliable power supply across the nation.

By strategically combining investments in research and development, promoting robust domestic manufacturing, implementing supportive policies, and ensuring universal access, India can not only achieve the ambitious target of ₹1 per unit electricity but also emulate Germany's success in building a prosperous, low-cost economy. The time for bold action is now, to illuminate India's future with the power of the sun.

with regards,

Hemen Parekh

www.HemenParekh.ai  /  www.My-teacher.in / www.hemenParekh.in / 18-4-2025