India demands greater energy efficiency and renewables

India must improve energy efficiency and develop significant electricity-generating capacity through renewable sources and nuclear power, business leaders at the World Economic Forum's 24th India Economic Summit said Monday.

"If India sustains a growth rate of 7-8 percent, there will be a huge energy shortage," said Adil Zainulbhai, managing director, India, for the global consulting firm McKinsey Company.

Efforts to meet the shortfall will likely entail the use of low-cost, "dirty" coal and diesel fuel, he warned. It is critical, therefore, to decrease demand through greater energy efficiency and to increase capacity through private sector participation in nuclear power and renewable energy projects including solar, geothermal and wind initiatives.

"From a climate change perspective, the rate of energy consumption around the world is unsustainable," said Tejpreet Singh Chopra, President and Chief Executive Officer of GE in India.

While oil will remain the dominant source of energy for some time, "nuclear power will become increasingly important," he said, adding that the "safety norms in the nuclear space have significantly increased in the last few years."

While other participants of the Summit warned that renewable energy projects are generally not yet commercially viable on a large scale and need to be given a boost through government incentives and subsidies.

Wind power pioneer Tulsi R. Tanti, Chairman and Managing Director of Suzlon Energy in India, argued that if the pricing of energy takes into account environmental damage, this would boost investment in the use of renewable energy sources.

Innovation and technology are rapidly reducing development costs, he explained, adding that there are major opportunities in renewable energy in India.

The World Economic Forum's 24th India Economic Summit, which opened in New Delhi on Sunday, saw nearly 700 participants from over 35 countries, including leaders from business, government and civil society.

Source: Xinhua