How critical are government subsidies to renewable energy? What other kinds of government support will be required?
Call them subsidies or incentives, they have been crucial to the development of alternatives. No less important are mandates and regulations that you see in Europe and North America and elsewhere, which stipulate that a certain percentage of electric power or motor fuel or total energy be ‘renewable’ in nature. You also need infrastructure to support renewable forms. In short, development of renewable forms depends on government policies. Of course, in countries where power prices are high or where there is a shortage, renewable energy can be much more competitive. Do you think this segment could some day become an economically viable option without subsidies? A lot of efforts have been made to make renewable energy more competitive. Last year, $2 billion (Rs 8,000 crore) worth of venture capital in North America was invested in ‘clean energy’, which is four times what it was just two years earlier. Investors are looking for alternatives that are economically competitive. Standalone ec
