Why Job Creation Has slowed Down in the Renewable Energy Sector

Renewable Energy Jobs – India

Solar and wind energy are not only helping in reducing our carbon footprint but are also huge generators of jobs. According to the Council on Energy, Environment and Water (CEEW), 1 MW of wind power creates 1.27 job-years of employment. Similarly, 1 MW of rooftop solar capacity can create 24.72 job-years, while ground-mounted solar plants produce 3.45 job-years per MW. These jobs, especially in the wind energy sector, are generated in the rural parts of the country as wind turbines are constructed away from the cities.

The aggressive solar installation target of 175 GW by 2022, was expected to generate 300,000 jobs in the country. However, poor policies, low tariffs, the cap on power tariffs, and increasing imports are hampering any growth in these renewable energy sectors. The country installed just 1,480 MW of wind power installations in 2018-19. The government’s emphasis on driving lower tariffs has dampened the spirits of many wind developers. It is difficult for small and medium wind energy companies to survive in such harsh competition. Introduction of a price cap also defeated the whole purpose.

“We have suffered in the last two years,” says Tulsi Tanti, the Chairman of the Indian Wind Turbine Manufacturers Association.

Source: Business Line

Similarly, the solar energy sector has also suffered mainly due to cheap imports from neighboring countries like China. This has led to the slowdown of manufacturing activity in the country. The falling installation has affected the rooftop solar segment, which is the largest employment generator. India has cumulative rooftop installation of a mere 2.5 GW way below the 40 GW target. The Indian government which is looking at generating millions of jobs for the jobless should take these factors into consideration rather than being fixated on reaching record low levels of price tariff.

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