A large-scale demand stimulus is needed to achieve the V-shaped economic recovery that India currently needs.
- The green stimulus can create demand, solve air pollution problems, and accelerate the transition to green energy.
- The burning of rice crop residues in northern India is causing air pollution problems. This situation can be avoided by obtaining all crop residues at a paid price.
- The residues can be turned into briquettes and they can be replaced by coal in thermal power plants.
Conversion of crop waste into briquettes
- NTPC has successfully done this without increasing the cost of power generation because the price of briquettes is comparable to coal in terms of energy.
- The harvested waste can be handed over to private entrepreneurs for briquette. Decentralized private investment will be used for conversion, thereby creating demand for conversion equipment, labor, and transportation.
- The government can reduce air pollution without paying any price.
- Electric vehicle charging infrastructure investment: Electric vehicles are environmentally friendly and have a lower life cycle cost per kilometer.
- However, due to the lack of charging infrastructure, demand has not increased. Until a sufficient amount of charging infrastructure is established the demand for electric vehicles will not increase, and the investment in charging stations will not generate returns.
- A national plan is needed to build charging stations in all cities with a population of more than 1 million.
- Charging stations can be fully financed through debt guaranteed by the central government. The purchase of electric buses for urban bus services can be fully financed through government-guaranteed debt.
- In addition to creating demand stimulus, these measures will also significantly improve the air quality of our highly polluted cities.
Inclination towards INDC Goals
Paid price of solar energy in rural areas: This does not require any transmission investment, but the distribution company will save money.
The solar energy generated by the village will make it easier to provide farmers with electricity for irrigation during the day. This will also help to use water more efficiently. If a village of 1 MW of power generation is realistic, there are 600,000 villages, then there is a potential of 600 GW of capacity construction.
Such a plan will generate widely diversified private investment and also increases revenue. With the popularity of stoves, LPG cylinders, and the electrification of rural households, cow dung is no longer necessary for cooking. It can be converted into a small village-level gas-fired power plant to be used as fuel for cooking and transportation or to generate electricity. India has the largest cattle herd in the world, and the goal should be to convert all cow dung into commercial energy. A government-funded system of obtaining this gas at a paid price will create the right incentives for private sector investment and income generation in all municipalities.