Smart is as smart does. The NDA government’s proposal to build 100 “smart” cities will work only if it can reinvent the very idea of urban growth in a country like India. Smart thinking will require the government to not only copy the model cities of the already developed Western world, but also find a new measure of liveability that will work for Indian situation, where the cost of growth is unaffordable for most.
How will solar energy be made to work in India? As I discussed in my previous article there are three key challenges. One, how will the country pay for solar energy in a situation where there is no money to pay for even the crashed costs of installation. Two, what is the best model for the distribution and use of this relatively expensive energy in a country where millions still live in the dark? Three, how should India combine the twin objectives of supply of clean energy and creation of domestic manufacturing capacities?
Supply issues comprise one part of the energy conundrum, as we discussed last fortnight. The cost of energy and our ability to pay for it is the other. The matter gets vexed because the rise in price of raw material of all energy sources is accompanied by huge inefficiency in distribution and accounting. But importantly, we remain a poor country where cost of energy is a factor in its availability and accessibility for all.
The power blackout in northern India on two days should not be dismissed or misjudged. Analysts are jumping to conclude that the crisis was foretold. They blame delays caused by environment and forest clearance procedures and demand winding down the regulatory framework so that we can re-energise ourselves. Their other favourite whipping horse is ‘free’ electricity to farmers, which is said to be crippling the state electricity boards. These explanations are naïve and mistaken.
It was a trade exhibition abuzz with the restrained chatter of busy suited executives at company stalls making contacts and finalising deals. Nothing out of place except that this trade was about renewable energy technologies, which have unconventional reasons for growth. First, these technologies are seen as the most economical and feasible source of energy for millions of people unconnected to the electricity grid and having no electricity to light their houses or cook their food. This energy poverty is disabling and needs to be eradicated.