Some background about India’s energy sector
India’s energy consumption is the third largest in the world after China and the US. And with the rapid growth of the Indian economy, energy consumption is also growing rapidly at the rate of more than 4% every year and may overtake China by 2030.
Structural reforms bringing the change
Now as part of the structural reforms India is concentrating on renewable energy ( energy generated from solar, wind power and other natural resources). With the initiatives by the government, India has become the second most attractive market for renewable energy equipment in the world.
Government’s effort to provide grid power connectivity to every house, Sristi Scheme – Rooftop solar power plant subsidy offered by Central Govt, Kusum Solar pump scheme for farmers and other measures have contributed to the growth of solar power sector. India’s solar installed capacity reached 28.18 GW ( gigawatt) as of 31 March 2019.
The Opportunity for Startups.
India’s requirement for solar power generation is rapidly increasing and because of that demand for solar equipment also increasing rapidly. India’s solar equipment demand is 90 % met by imports. Which shows a huge scope for Indian startups in the area of solar equipment manufacturing.
Another opportunity is in the area of developing solar energy storage devices or equipment. Because solar power generation is based on the sun’s energy, which may not be available for the full day or year. So there is a huge opportunity available in the area of technology evolving solar energy storage devices.
China’s leading efforts!
China is the world’s largest manufacturer of Solar panel. China is no.1 in the world in solar energy generation, at 130 gigawatts. If it were all generating electricity at once could power the whole of the UK several times over as per BBC report. China is also putting efforts into developing energy storage techniques and is getting ready to provide solar energy storage solutions.
Then, What’s the problem in India?
In spite of government encouragement, India is way behind in solar equipment manufacturing. And the main problem is lack of innovation.
Solar equipment manufacturing sector is a gold mine of business opportunities but how Indian millennials will take advantage of it?
Share your views.