The Political Economy of India's National Solar Energy Program

Abstract

Energy is always a political issue, so is food. The nation states want to retain control on the daily life of its citizens by influencing the supplies and prices of these basic necessities through regulations and subsidies. And to achieve this objective, they have developed a symbiotic relationship with corporations, both national and global, engaged in food and energy sector. Recent developments in India’s renewable energy sector – specially its emphasis on grid connected power generation and solar energy program should be analyzed from that perspective. In the absence of an independent long term energy policy, the government of India has relied on foreign sources for critical inputs like crude oil, uranium, silicon et al. The state has takes short term initiatives to address the energy needs of an elite group, comprising mainly, of the upper and middle class citizens of urban India; big corporate houses; and large farmers. In this endeavor, the ruling elites and global energy utilities acted in tandem as collaborators to the state and enjoyed maximum benefits in the form of subsidies and easy access to better quality energy sources. The Solar Energy Mission, as announced by the Indian Prime Minister, is not an isolated announcement made in haste. It is a pledge to pursue with the policy as followed by the dominant players of the industry. Moreover, it suits the ambitious state to use subsidies to retain its control, as were the case with petroleum and nuclear, on the supply of this renewable source of energy also.This recent euphoria about solar and nuclear energy is the continuation of such a policy initiative aimed at retaining the state’s hegemony on energy needs of its affluent and vocal citizens. But rapid diffusion of solar PV may change the rule of the game. Since 1960s, the state has gradually lost its control on underground water resources when ‘green revolution’ compelled the Indian state to encourage small irrigation projects. To lift underground water personal pump sets of the affluent farmers were used. And to facilitate this huge subsidy on diesel was provided. Oil companies were the ultimate gainers of green revolution which created markets for fuel based fertilizer and water. Subsequently, in 1990s, the Kyoto Protocol has established a market for clean air. And now a new market for sunrays has been developed. Thus during last fifty years, huge markets for three ‘natural commons’, namely water, air and sunlight, have been created. In order to retain its sovereign power and protect the interest of citizens, in these fast growing markets of the basic necessities (water, air, sunlight) , the ‘state’, will have to break its long alliance with large corporations. The objective of the solar mission must be redefined to provide affordable electricity to these citizens in next one decade. The weight age on’ off- grid’ power generation should be much more than a mere 2000MW (10% of the total) as targeted in Solar Mission. And to achieve that, the priority should be on Solar Technology Mission so that the best research talents could be engaged for the development of appropriate technology. Planners should motivate the scientists to move away from nuclear energy to renewable energy research. Moreover, for effective diffusion of technology among the masses, a suitable discourse on renewable energy technology should be introduced, immediately, in all the engineering and polytechnic colleges.This Solar Mission will not help the state to face the real challenge of providing affordable modern energy to millions of its energy starved citizens. Thrust should be on local generation and distribution through community grid/mini grids and not on national or super grids. For a sustainable future of this planet, the teachings of Buddha and Gandhi on better living by consuming less and sharing more should be the guiding principle of energy planning. It is high time that we realize, small is really beautiful.