Pure Economics is Pushing Renewable Growth

America’s pulling out of the Paris Climate Accord might not be such a big setback as was feared initially. Its is pure economics that is driving countries towards a cleaner, greener future.

China and India are already on track to rapidly expand their renewable energy capacities. China, the world’s top energy producer, accounted for 40 per cent of all renewable energy growth last year.
In India, the price of solar energy is at a record low, dropping by 40 per cent in over two years. This makes it easier to change the country’s energy mix, and reduce the dependence on coal and polluting thermal plants.

Countries are not doing this to save the planet but are switching to renewables “in their own interest”. Like India’s recent announcements that they want to be 60% renewable by 2027 is not because of their love for green energy but because solar power in now cheaper than coal and they want cheap reliable clean energy for the health of their cities and economy. However, some experts, who have a more cautious approach to the renewable energy euphoria, say that it will take time for projects to settle, till then, the dependence on coal will continue. Since both India and China are using clean coal technology, it will bring down emissions.

So it is quite clear that renewable energy is surging ahead as pure economics appears to be in favor of green energy.