West Bengal to Save Rs 62,000 Crore by Shifting to Renewable Energy, Study Finds

A recent study conducted by Climate Risk Horizons (CRH) reveals that West Bengal could save up to Rs 62,000 crore over the next decade by shifting from coal-based thermal power to renewable energy sources. This move could significantly contribute to India’s ambition to achieve net-zero emissions. Analyst Vishnu Teja highlighted that West Bengal is currently missing out on a lucrative opportunity by not prioritizing renewable energy, which could bring substantial economic benefits to the state and its electricity consumers.

Presently, West Bengal heavily relies on coal for power, with 97% of its energy production stemming from coal-based sources and a minimal renewable capacity of 200 MW from wind and solar. The CRH report points out that many of the state’s coal power units are outdated, being over 20 years old and nearing the end of their operational lifespan. Retiring these old plants could lead to significant savings by avoiding the costs of retrofits and penalties for failing to meet emission standards.

The report advises against the investment of nearly Rs 25,000 crore in new thermal power projects, suggesting instead that these funds be redirected towards renewable energy and grid enhancement. It also mentions potential annual savings of up to Rs 318 crore from switching to lower-cost renewable energy contracts and highlights the considerable financial benefits of electrifying irrigation pumps with solar power for rice cultivation, which could lead to an annual saving of Rs 20,720 crore.

Moreover, transitioning to renewable energy, including the development of solar capacity and pumped storage power plants, alongside rooftop solar installations on educational and office buildings, requires substantial upfront investment. Ashish Fernandes, CEO of CRH, suggests that the state government could leverage the green bond market, alone or in collaboration with the private sector, to fund these initiatives.