Opening address by. Mr. Adnan Z. Amin. Director-General International Renewable Energy Agency. to the

Transcription

1 Check against delivery Opening address by Mr. Adnan Z. Amin Director-General International Renewable Energy Agency to the 1 st Renewable Energy Global Investors Meet & Expo Panel Discussion on Make In India Renewable Energy Focus

2 New Delhi, India, 15 February 2015 Distinguished Guests, It is a tremendous pleasure for me to be here. I think this conference is very significant because what we see in terms of the scale of ambition that you are projecting in India today, what we see in terms of the political commitment embodied in the renewable plans being formed here, what we see in the context of the knowledge that is available around the table in the private sector but also in government, this is the beginning of a process that will be one more transformational step in the surge of renewable energy globally, and this will be hugely consequential. We are meeting at a time of remarkable and sustained economic growth in India. India has recently become the third largest economy in the world and is poised to be the fastest growing economy in the coming years. And if your ambition of the growth rates for three decades is to be realised, we have to really think historically of what this means for a population of over a billion. It s truly a gamechanger. So with this economic growth comes very fast-growing energy demand, and it is energy that will be at the base of powering the development of India. So this is a very appropriate discussion.

3 Today, India is the fourth largest consumer of energy in the world accounting for around 5% of global energy consumption. By 2030, energy consumption is expected to double, and the growth in energy consumption in India will be the highest among all countries in the world on current trends. But there is an international context to this also and what has become clear, all over the world but especially in India, is that this demand can no longer be met through traditional energy sources alone. Growing concerns over dependence on imported fossil fuels and their impact on energy security, widespread energy poverty, climate change and environmental damage, through greenhouse gases emissions and pollution, are all prompting governments globally to move towards an energy mix that is dominated, to the greatest extent possible, by locally sourced energy which is secure, environmentally sustainable and creates maximum local value. Ladies and Gentlemen, the reason we are here today is because renewable energy has to be a major part of the solution. It represents India s best hope to produce more and safer energy, while at the same time meeting broader socio-economic objectives. The case for further accelerating renewable energy in India has never been stronger, and the promotion of a domestic renewable energy industry, including manufacturing, presents a once-in-a-lifetime opportunity for sustainable development.

4 Technology costs have plummeted over the past few years. Countries across the world are deploying larger shares of renewable energy and realising a broad range of socio-economic benefits. And, most importantly, India has the building blocks to create an even larger global renewable energy market as the scale of ambition takes us to the next frontier for reducing technology cost through scale. With respect to costs. This decade has seen dramatic, and sustained, improvement in the competitiveness of renewable power generation technologies. IRENA recently launched one of the most comprehensive studies yet made on the renewable energy price revolution in the power sector. Its findings are striking. Solar PV modules in 2014 cost 75% less than in Wind turbine prices declined by more than 30% over the same period. The cost of electricity from utilityscale PV systems has halved since If we were having this conversation only three years ago, this entire ambition would not have been feasible. Even countries in the heart of the oil-producing world are taking lead. The results of a recently held capacity auction in Dubai in the United Arab Emirates symbolised how quickly costs are falling. The lowest bid for 200-megawatt solar was a remarkable 5.84 US dollar cents per kilowatt-hour. That s equivalent to 3.6 Indian Rupees per kilowatt-hour.

5 This increase in cost-competitiveness has allowed renewables to account for around half of new capacity additions globally, and investments in renewables passed 260 billion US dollars in 2014, which is more than five times what it was only a decade ago. And it has been said in the past that renewable energy is a niche technology for rich countries to indulge in. But, this transformation has moved well beyond developed countries. Asian countries are now engines of renewable energy growth. And India boasts some of the most competitive development costs for renewable technologies anywhere. Investments in India rose 13% last year, and are expected to surpass 10 billion US dollars this year. Adoption of increasingly cost-effective renewables holds a genuine promise of a new age of socio-economic development. And this is not hyperbole. This is something we really believe is before us. An age powered by clean, increasingly decentralised and sustainable energy. And make no mistake the opportunity for India is tremendous, and it is inspiring for me to see that that opportunity is being seized by both hands. So those are the cost issues. Now if you look at the bigger picture. What will adopting renewables do for India s economy? India s target to rapidly scale up renewable energy deployment is very welcome. So is its goal to increase the renewables share in power mix from the current 6% to about 15% by Achieving these goals will not only increase energy security, but unleash a vast array of socio-economic benefits.

6 Very importantly, developing renewables creates jobs. In a world dominated by jobless growth and unemployment in developed economies, this is a centrally important issue. IRENA s analysis has shown that jobs in this sector reached 6.5 million in Already, India is the world s fourth largest employer in this sector, with 391,000 jobs. So switching focus, as India is doing, towards renewables development creates jobs, and it boosts the economy. It generates new sources of growth. It increases income. It improves trade balances. And a number of countries globally are already realising many benefits. For example: - Renewables have saved Germany about 13.5 billion US dollars in 2012, positively impacting Germany s trade balance. - Bangladesh, your neighbour, has extended electricity access to over 13 million people 9 percent of the population through solar home systems. Bangladesh has installed over 3 million systems. It is the world leader in doing this. And this decision has created over 100,000 local jobs and replaced the use of 180,000 tons of kerosene, at a value of around 225 million US dollars a year. It is transforming Bangladesh s economy. - Brazil s wind deployment has more than doubled from 2.5 gigawatts in 2013 to 6 gigawatts today. Fifteen gigawatts of wind power has been contracted through its auction programme, achieving costs which are lower than gas and close to coal. As a result, major global wind sector players Alstom, Vestas, Gamesa, GE Wind and India s own Suzlon have invested in local manufacturing plants, which has created close to 32,000 jobs.

7 Brazil has managed to do this with just under 6 gigawatts of wind installed. India has 22 gigawatts installed already. So India s potential for becoming a major user of wind technologies and major wind turbine manufacturer is huge. It can be realised if the renewable energy transition in India is scaled up as per the ambition expressed today. So how do we scale this transition up while also maximising benefits from it? India now has one of the most ambitious renewable energy programmes in the world. 40 gigawatts of wind by 2019, up from 22 gigawatts today, and a massive 100 gigawatts of solar by 2022, from just over 3 gigawatts today. Political leadership and commitment make all the difference, and this is no doubt why we witnessed this morning the commitments from the private sector to more than double the government targets on the table, commitments which are extremely inspiring to see. The role of practical examples of decarbonising energy, as embodied in the ambition of India, is really instrumental to achieving a sustainable world in the future. So you are not alone in this ambition we are looking at you with great admiration and are very happy to support you.

8 So the meeting of these targets will require collective effort by domestic and international players, but with strong government backing. And the signs of progress are encouraging. The attendance here is testament to that. The building blocks of a gateway for India are already in place. They exist. An ambitious target with strong political commitment at federal and state level, supported by real political action and a strong manufacturing base. To build beyond this gateway, to build a new age of development for India s renewable energy sector that is consistent with its ambitions, we must get the right mix of policies. Deployment policies, such as auction schemes, need to provide a framework that is stable, is predictable, improves clarity on the long-term trajectory of the market and anchors investor confidence. Policy frameworks need to address the peculiarities of different market segments while allowing a broad array of domestic and international players to participate. This will help to create a strong, sustained demand for renewable technologies. When this is ensured, the case for manufacturing will become much stronger, and this will bring in longer-term investments to the sector. At the same time, enabling conditions need to be put in place. Measures to bring down the cost of capital accessible to the sector are needed. Industrial policies need to be well aligned to promote skills and development initiatives, encourage research and innovation as was our discourse this morning, and strengthen private sector capabilities across the value chain of renewables deployment on components, balance of systems, and products as well.

9 Today, India has the sixth largest renewable energy capacity on the planet. But we believe that the journey has only just begun for India. India has the potential to substantially scale up deployment and by doing so, fulfil its broader social and economic development agenda. In the coming months, we will be launching our REmap 2030 report, which we have prepared in close consultation with the Ministry of New and Renewable Energy, which will lay out roadmaps for India s renewables sector to 2030 in line with global ambitions to double the renewables share in the global energy mix by that date. I trust that that report will be a useful input into your debate as you chart the way forward. But in conclusion, let me say that what you are proposing to do in the coming years is going to be hugely transformational. Not only for India. Not only in terms of sustaining the sustainable growth of India s economy for the future and providing employment and income and prosperity. It will be hugely consequential because we know that investment at the scale which you are proposing has historically been the driver of innovation and reduction in costs across the world. Your contribution is not only to the sustainability of your economy. It is the sustainability of our Earth and it is the responsibility of our Agency to provide you with the services that may be required and to support you throughout this endeavour.

10 Thank you very much. ----