India targets 900 GW clean energy by 2035 amid power cost issues
What happened
Prime Minister Narendra Modi announced a goal to achieve 900 gigawatts of non-fossil power capacity by 2035, primarily through solar and wind energy. This goal is set against a backdrop where Tamil Nadu faces high power costs. Currently, 40 GW of low-cost solar projects are unable to sell their power to distribution companies.
Why it matters
The transition to a solar and wind-dominated system raises questions about delivering reliable electricity at lower costs. While industrial and commercial consumers are driving growth, 40 GW of auctioned projects remain without buyers. High prices are observed, with Tamil Nadu paying up to ₹37 per unit after sunset, compared to Indian Energy Exchange prices that have reached ₹10 per unit.
Who's involved
- Narendra ModiAnnounced the national goal of 900 GW of non-fossil power capacity.
- Tamil NaduIs grappling with high power procurement costs due to market volatility.
- Indian Energy ExchangeSets the market prices for electrical power in India.
- central governmentIs responsible for the national energy transition policy.
- IndiaIs the nation pursuing the 900 GW clean energy target.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Tamil NaduSpeculative
Tamil Nadu might face higher operational costs due to high power procurement costs.
- Indian Energy ExchangeSpeculative
The Indian Energy Exchange could experience market instability due to the mismatch in solar power sales.
- IndiaSpeculative
India could see national investment in energy infrastructure increase due to the 900 GW goal.
- CoalSpeculative
Coal might see reduced long-term demand as the clean energy goal accelerates.
Keep exploring
The entities involved
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Narendra Modi
Prime Minister of India since 2014
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Tamil Nadu
state of India