Clean energy that derives electricity from renewable, nonpolluting sources like wind and solar is a growing sector on the world stage. Up until now, it has been doing particularly well in the Indian state of Rajasthan. But new fees affecting land sales for clean energy projects are set to slow that progress down, Reuters reported.
What's happening?
Rajasthan, a desert region, is the ideal site for solar farms, which often require 50-100 acres of unoccupied land. With new development, the state has amassed 30 gigawatts of clean energy capacity, and Indian companies have pledged to invest billions of rupees in more.
However, Rajasthan's land registration laws have recently been amended. Now, companies must pay registration charges and stamp duties for both leasing and purchasing land that they want to develop for clean energy projects.
The change represents an 8% to 10% increase in land costs. Since land accounts for about one-fifth of the total project cost, per Reuters, that's an increase of up to 2% of the overall cost of a clean energy project — a large sum when we're talking about a full-scale solar or wind farm.
"For newer projects that are yet to be bid out and developed, companies have to additionally factor the cost," said Vikram V, vice-president and co-group head of Corporate Ratings at credit rating agency ICRA, per Reuters.
Why is the changing law important?
Land costs are already an obstacle to clean energy development efforts in India, especially in the most desirable areas with reliable connections to the power grid. Those costs are set to keep going up, which will inevitably slow the adoption of solar.
Right now, solar and other clean energy options are the world's best shot at cooling down the planet. Heat-trapping air pollution from dirty energy sources is heating up the Earth and causing severe weather disruptions. Clean energy is making a difference, but we need to commit to making the switch to prevent major harm to our world.
What can I do about switching to clean energy?
You may not be able to change India's land sale policies, but you can vote for local candidates who have an environmentally friendly agenda. You can also adopt solar yourself, either by installing solar panels if you're in a position to do so or by subscribing to a community solar service.
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