Introduction
The new and renewable energy sector has gained a lot of attention in recent years. Renewable energy sources are crucial not only for achieving energy security but also for environmental sustainability. Globalization has led to a rapid increase in energy demand and there is a further drive to disrupt the existing energy mix. In India, the government has implemented various initiatives for the promotion and development of renewable energy sources, such as solar energy, wind energy, bioenergy, geothermal energy, etc. The objective is to promote the use of renewable energy sources through policy reforms, public-private partnership and the development of Ultra Mega Power Projects (UMPP). The current share of potential renewable energy in the energy mix is close to 15%. The estimated renewable energy potential from commercially exploitable sources for India is around 900 GW with a total installed capacity of around 310 GW. Therefore, there is a great scope present in this sector. The government has implemented several projects in the renewable energy sector with an emphasis on research and development, technical and financial support, public awareness, and public-private sector synergy. The Ministry of New and Renewable Energies (MNRE) focuses on the deployment of projects and incentives through the participation of the states and various administrative levels. Regulations have been specified at the state level to promote renewable energy projects in the respective states. However, there are limitations in the realization of the renewable energy mission in terms of credit risk, technical risk, policy risk and social factors, which can cause delays in the expected results. The other important factor is attracting new entrants in this sector by ensuring real and credible returns, expansion opportunities and flexible regulatory rules. It is also essential to ensure that the benefits are extended to the community, in terms of job opportunities, higher standard of living and environmental sustainability.
Green entrepreneurship
Green Entrepreneurship is essentially concerned with innovative business aimed at addressing the problem of environmental concerns and offering solutions to mitigate the associated problems. These companies take advantage of the opportunities that exist in the environmental sector and deploy measures for the sustainable development of society. The recent push from the government is allowing various opportunities for these entrepreneurs to evaluate in the renewable energy sector.
Current scenario
The renewable energy sector offers ample opportunities in terms of growth and environmental sustainability. However, it is necessary to consider evaluation and benchmarking criteria for companies in this sector. There is also a lack of a profitable strategy for the same in the Indian scenario. Businesses are clouded by high upfront costs and calculation methods for estimating capacity. This is further exaggerated by the lack of experience in the field and the limited awareness and motivation among the people. The government, however, has developed policies to support green entrepreneurship and has provided different incentives, but this support appears to be limited in scope. This allows for limited leniency from companies in the sector.
Opportunities
Business acceptance and credibility is a critical factor for the success of a green entrepreneurship company. There are a lot of opportunities in the various domains of the renewable energy sector. These domains include solar energy technology and installation, biofuel generation, biofertilizers, consulting services, etc. The government has started several programs to support entrepreneurship in the country, particularly in the renewable sector. The benefits are provided in terms of incubation and mentoring centers. There are also companies and investors available in the market, to support green business initiatives. The focus is not only on renewable energy generation, but also encompasses energy storage and distribution. Therefore, there is a wide variety of options available in terms of the market and finances.
recommendations
The following recommendations are intended to provide guidelines for entrepreneurs to identify the appropriate domain in the renewable sector. These are based on the premises of selecting the business vertical based on the base location, power source, government incentives, etc.
1. Entrepreneurs need to develop an understanding of the different types of sources along with an emphasis on the feasibility to realize the potential of the different sources in their base state. The main focus should be to assess the potential for harnessing sources based on the economic and technological front. The existing status of the industrial area in the area must be determined to generate an overview of the industrial setting of the state.
2. The potential for use available must be evaluated according to the different methodologies and technicalities. For example, in the case of using solar energy, there are different methods of using solar energy, such as grid-connected solar generation, phase change materials (PCM), rooftop solar projects, etc. In addition, the analysis of the resource potential of the region should be in terms of area availability, wind / sun days, biomass availability and its accumulation, land suitability in terms of jatropha cultivation, etc. Implementation guidelines should be highlighted based on analysis of census data.
3. The existing regulatory and infrastructure framework in the renewable energy sector should be studied. Furthermore, the other crucial factors are the provision of financial and administrative support.
4. Companies should study the examples of project implementation in the sector in different states, to identify existing gaps and develop solutions to bridge them.
5. Identifying technical, social and political barriers in the implementation of renewable energy projects is crucial, particularly in the initial stages. An important part is to improve the knowledge about this sector among the masses. In addition, it is essential to identify the possibility and plan to achieve synergy between the public and private sectors in this sector, particularly in the first years of project development.
6. Generate an understanding of the plausible impact of the Goods and Services Tax (GST) and other government initiatives such as ‘Make in India’ and ‘Stand-up India’ in this sector.
7. Estimate the potential for generating employment opportunities and improving the standard of living of the local population due to the promotion of this sector. It is imperative to identify the support of local Self-Help Groups (SHGs), NGOs and local societies in this regard.
8. Identify the different currents of specialization of the MSMEs in the sector. For example, MSMEs may choose to focus on solar cookers, solar bulbs, contracting wind turbines, etc.
conclusion
This sector offers a productive opportunity in terms of profitability and environmental sustainability. There are different incentives and policies on the part of the government for the promotion and development of green entrepreneurship in the country. Entrepreneurs have the option of selecting the different domains of the sector based on technical functionality and sustainability according to the area of operations. The recommendations provided in the articles serve as a guide, however, due caution should be exercised when considering the external environment and associated variability.
