Oil firms ready to promote use of renewable energy

Sai Nikesh | The Dollar Business

In a major boost to the government’s initiative to encourage the use of renewable energy, state-run oil companies are keen on promoting such projects in the country. Several state-run fuel retailers were said to be ready to extend easy loans to petrol pump owners to help them in setting up solar power plants as part of the ‘go green’ initiative. Speaking to The Dollar Business, Pranav Mehta, chairman, National Solar Energy Federation of India (NSEFI), said, “Such move by state-run oil firms is definitely a positive move and this will greatly reduce load on the state utility.” This will also be a step ahead towards decentralization of power generation, which is the prior need of the country. And, cash-rich oil firms coming forward to boost renewable energy utilization will accelerate the decentralization process, he added. Asked whether the full-fledged implementation of renewable energy utilization would reduce the country’s dependency on oil sector, he said, “This will not happen as of now. Even if renewable energy utilization is seen in a full-fledged manner, India needs non-renewable energy sources at least till 2025-30 and around 50-60% dependence is likely to be on coal source alone for power generation.” However, India’s dependence on oil imports can be seen reduced through proper utilization of renewable energy. Many countries like Germany, United States, China, among others, are also pitching for renewable energy utilization and the initiative especially by oil-rich regions of the Gulf, oil companies all across, is aimed at mitigating their contribution to CO2 emission. And, Indian oil firms coming forward is an encouraging move, especially when the government is also offering a tremendous support in promoting renewable energy projects and investments are also pouring in to a larger extent. Of the estimated US $100 billion of investment required for solar energy projects, US $20-22 billion has already come and the flow continues to be good and encouraging, he added.      

August 04, 2015 | 8:00 pm IST.