India Saves $4.2 Billion in Fuel Costs by Generating Solar Power: Report

According to a recent report, India has saved approximately $4.2 billion in fuel costs and 19.4 million tonnes of coal in the first half of 2022 through solar power generation. The figure was released by UK-based energy think tank Ember, in collaboration with the Centre for Research on Energy and Clean Air (CREA), and the Institute for Energy Economics and Financial Analysis (IEEFA).

Moreover, seven key Asian countries, including China, India, Japan, South Korea, Vietnam, the Philippines, and Thailand, together avoided fuel costs to the tune of approximately $34 billion by generating energy through solar power. This amounts to 9% of the total fuel costs of these countries, from January 2022 to June 2022.

The fuel savings of the 7 Asian countries are as follows:

China’s saving was the highest, as it met 5% of its energy demands through solar capacity in the first half of 2022.

The report also states that Asia, a region that accounts for almost half of the global energy demand, is witnessing rapid growth in the solar arena. Currently, 5 Asian countries, which include – China, India, the Philippines, Japan, and Indonesia, feature in the list of the top 10 solar-powered countries of the world.

Moreover, the solar industry is set to witness an average annual growth rate of 22% across these five top Asian economies.

Fuel prices which had stabilized somewhat during the COVID-19 pandemic have skyrocketed again. In this landscape, the expansion of solar is being driven by its cost efficiency. As per IRENA (International Renewable Energy Agency), the Levelized cost of electricity on utility scale solar plants fell by 88% in the last decade.

Further, solar power has become the cheapest source of electricity in history.

The report also stresses the importance of deploying solar technologies, removing barriers, and creating a solar ecosystem so that solar power can remove the burden on the energy system and government budgets.

“Asian countries need to tap into their massive solar potential to rapidly transition away from costly and highly-polluting fossil fuels. The potential savings from existing solar alone are enormous, and expediting their deployment alongside other clean energy sources such as wind, will be crucial for energy security in the region. While ambitious targets are important, follow through will be the key thing to watch moving forward.” Says Isabella Suarez, CREA’s Southeast Asia Analyst.

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Resource: LiveMint