Transition to renewable energy could save Bengal Rs 62,000cr over next decade: Study – EQ
In Short : A study suggests that the transition to renewable energy in West Bengal could save the state Rs 62,000 crore over the next decade. This indicates the potential economic benefits and cost savings associated with adopting renewable energy sources, contributing to sustainability and reducing dependence on conventional power generation.
In Detail : Kolkata : West Bengal can save a significant Rs 62,000 crore over a decade by transitioning from thermal power to embracing renewable energy sources, a study by think tank Climate Risk Horizons (CRH) said on Thursday.
This transition could also play a pivotal role in helping India achieve its net zero emissions target, it said.
“Rising costs of coal-fired electricity underscore the potential missed opportunity in West Bengal’s focus on renewable energy. Correcting this oversight could yield substantial financial gains for both the state and its electricity consumers,” said Vishnu Teja, the analyst of the report.
According to the report, about 97 per cent of West Bengal’s power is now coal-based, with only a meagre 200 MW of wind and solar capacity.
The report also highlights that many of the state’s coal power units are over 20 years old and nearing the end of their operational life.
“Phasing out these older plants would lead to immediate savings by avoiding retrofit costs and penalties for non-compliance with emission norms,” the report mentioned.
The CRH report recommends halting greenfield thermal power projects costing nearly Rs 25,000 crore and redirecting these investments towards renewable energy and grid strengthening.
“Given the rising costs of dry fuel and the increasing attractiveness of renewables on multiple grounds, the funds should be diverted towards renewables ecosystem to yield substantial savings,” the report stated.
For instance, replacing higher-cost power contracts from centrally-owned coal plants with cheaper renewable energy could save up to Rs 318 crore annually, the report said.
It also underscores the potential savings from electrifying irrigation pumps with PV solar, estimating an annual saving of Rs 20,720 crore for rice cultivation alone.
Savings from replacing thermal generation of Central and state-owned TPPs, in the state with RE at Rs 2.7/kWh will save about Rs 12,700 crore in 10 years.
However, building up the state’s renewable energy portfolio will require upfront capital investments in RE, battery storage, etc.
Recognising the need for capital for deployment of the transition, Ashish Fernandes CEO of Climate Risk Horizons said, “The state government can tap the growing green bond market directly, or in partnership with the private sector, to finance these initiatives.” The state government had stated that it has plans to build a 1,760 MW solar capacity, 1,000 MW from the Turga Pumped storage power plant, and receive 230 MW from Bhutan and 118 MW from Teesta hydel projects.
The state is also heavily deploying rooftop solar panels at educational and office buildings.
