The year 2015 has witnessed oil, coal, power, renewable energy and nuclear power sectors evolve considerably. With sudden changes in price dynamics of fossil fuels and a push towards cleaner energy, the Modi government has managed to navigate a brighter path.
Oil: The ship of India’s energy sector has witnessed historic turbulence in the year 2015. With decade low oil prices skewing the mathematics for oil companies, India’s upstream oil sector was massively hit. The benefits were reaped by refiners and petrochemical retailers who sought to capitalise on higher margins. When crude hovered near $30/bbl, the Oil Ministry swung into action, proposing an ad-valorem cess on domestically produced crude oil and exemption for ONGC and OIL from LPG and kerosene subsidy payout.
Power: Steering the power sector towards the beacon of hope, the Power Ministry has devised the Ujjwal Discom Assurance Yojna to bail out the Rs 4.3 lakh crore debt on discoms. The scheme seeks to cut power thefts and align consumer tariff with the cost of generating electricity. In-principle, 11 states have agreed to the Central government’s scheme and seek to issue bonds by the end of the financial year.
Renewable energy: Amid record low solar power tariffs and buoying prospects, renewable energy has emerged as the dark horse in the year 2015. Prime Minister Narendra Modi has hallmarked India’s renewable energy generation targets at the Paris Climate Change Summit. With a targeted capacity addition of 1,75,000 MW of renewable power by 2022, the government claims that it is the largest such programme in the world.
Nuclear power: Nuclear power has regained prominence after allaying concerns over liability clauses and a global push towards phasing out fossil fuels. After the ambitious target of hiking the component of ‘clean energy’ in India’s energy mix to 40 per cent, the government is aiming at 40,000 MW of nuclear power capacity by 2030. The government has been footing on nuclear diplomacy to source fuel grade uranium and technology tie ups with Russia, the US and Japan.