Discuss the significance of energy markets in the context of attaining India’s emission goals under Paris agreement. (200 Words)
Refer - Business Line
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IAS Parliament 4 years
KEY POINTS
· The Paris Agreement 2016 calls for the reduction in Global Greenhouse Gases (GHGs) in order to limit the global temperature rise to 1.5 degrees Celsius.
· Being one of the signatories, India has set a target of cutting emission intensity by 33-35 per cent from 2005 levels while generating 40 per cent of its electricity from non-fossil fuel sources by 2030.
Energy markets
· The power exchanges have become key players distribution utilities and industrial consumers in a transparent, flexible manner to facilitate optimisation of demand and supply.
· Competitive power prices discovered in the markets ensure that the most competitive and efficient power plants find easier despatch over the less efficient ones.
· Cost-effective energy efficiency improvements can yield positive macroeconomic impact by boosting economic activity and often leading to increased employment.
· Driven by competitive prices, power procurement optimisation, risk management and customer focus in the electricity value chain, the share of exchange based power markets has increased to 30 per cent in 2015 and further to 41 per cent in FY20 of the short-term market.
· Pace of progress in embracing energy efficient ways will be important to carve out a cleaner, sustainable and more energy secure future.
Dev 4 years
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IAS Parliament 4 years
Good attempt. Keep Writing.
