The Covid-19 pandemic could provide an opportunity for companies to think of a greener future for the energy sector, according to Gautam Adani, Chairman, Adani Group.
“Covid-19 challenges the fundamental assumptions of our lives, the urgency of a green revolution in the energy sector gains greater importance,” Adani wrote in a blog post on LinkedIn.
“While the immediate economic impact may slow us down, we are presented with an opportunity to pause, rethink, and design a new and faster transition to a low carbon future,” he further added.
According to the Adani Group chief, the pandemic can help players in the energy sector think of an alternate, greener energy sources and help in slowing down the process of climate change.
“Although the impact of climate change is slower to emerge than a pandemic, its threat to humanity is more significant,” said the Adani Group Chairman.
Learnings from Covid-19
In a blog post on the professional social media platform LinkedIn, Adani detailed the benefits of greener energy and how organization and authorities can leverage this opportunity to bring about a “green revolution” in the energy sector to overcome the economic impact of the pandemic.
Adani cited the example of Europe where system operators are turning to renewable sources for managing power grids due to decreased demand. Though this may change as demand increases, this could provide a learning opportunity for system operators.
“While the generation balance may swing back as demand increases, the crisis has provided insights to operators on keeping the grid stable with high levels of renewable penetration. Post Covid-19, this may be the new norm,” he wrote.
Economies of green energy
He further debunked the belief that renewable energy is bad for business irrespective of it being good for the environment. Renewable energy can lead to massive market demand and can create new jobs thus aiding the overall economy.
“The economies of scale continue to create massive market demand and job creation through renewables while simultaneously addressing the energy security for countries dependent on energy imports,” he said.
“With increasing investor confidence in solar and wind, their integration with various storage technologies will further accelerate the energy transition. The predominant storage technology on the horizon appears to be Hydrogen. I am personally hopeful about Hydrogen in the long run,” he further added.
India can lead the way
The Adani chief further cited a recent report by the International Renewable Energy Agency (IRENA) that employment in the clean energy sector could quadruple by 2050. According to the report’s estimate, the transition to green energy could also provide investment opportunities of $19 trillion in solar, wind, battery storage, green Hydrogen, carbon management and energy efficiency by 2050.
India could lead the way in this transition with high capacity and plenty of natural resources to help accelerate the green energy transition.
“India is quietly and firmly leading the way. Covid-19 may be the turning point where society leverages the economic rebuilding effort to fast track the transition to a cleaner future,” Adani said.