Who will pay for the expensive renewable’s?

1) Consider the true cost of Coal

“The true price of coal would be about Rs 11 KwH, from coal mining to generation in Jharkhand, India.” says Dr S.P. Ganchaudhuri, director, West Bengal Renewable Energy Development Agency (WBREDA) and special secretary, power dept.

In the present framework of financial analysis - We fail to calculate the externalities associated with coal - material cost, relocation cost, environment and social cost. When we do an independent pricing of coal - add the damage cost by coal to its existing cost - it becomes clear that coal is not economically feasible as against renewable energy technology that already exist.

The Ministry of Energy of Ontario found that the “true cost” of coal-based electricity was 4-5 times the “market price” - depending upon whether one valued a human life at $4 million or $5 million.

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Monetized costs of environmental damage due to Coal Power Generation
- WISE ( World Institute Sustainable Energy)

Estimated cost of damage - when CO2 is valued at 70 euros/tonne* -

• Estimated cost of damage due to CO2 = Rs.4.20 / kwh

• Estimated damage due to other externalities = Rs.2.77/kwh

o The total damage costs = Rs.4.20 + Rs. 2.77 = Rs. 6.97 / kwh

*Experts in Europe have estimated the range of CO2 damage costs as lying in the range 15 – 280 euros / ton of CO2 with a best guess value of 70 euros / ton.
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2. Co-operation with the Rest of the World

Knowing what we know now - about the harmful effects of Greenhouse gases, we need to find alternative means of energy and development.
India must
1) Design a speedy and effective plan for implementing energy efficiency and switch to renewable energy,
2) Calculate the cost of a low carbon growth pathway, and
3) Conduct an internal capacity analysis for the switch.

For the deficit India must work with other developed countries on
- Technology cooperation
- Capacity building