Concerning public policy, solar power is becoming more and more attractive (in the economics perspective), and currently it can be considered the most promising development to be initiated. For example, in about one year and half, the prices of PV (photovoltaic) modules dropped 40 percent and the good news: the price tends to keep dropping in the middle term.
Using the correct policy vision it would be possible to influence the path-breaking related to improvements in tapping the solar power in order to massively increase the public finances. This would reduce smoke emission and even a reduction on domestic pollution would be possible.
Currently, experts say that the costs associated with solar power are dropping gradually, fast and significantly. Now, the solar power is almost compared to the power provided by fossil fuels. However, fossil fuels produce great amounts of pollution, a disadvantage solar power does not possess.
In a close future, energy from the regular electric grid will not be much cheaper than the solar energy that is currently installed. The actual policy process needs to be one step ahead from this kind of grid parity on the cars and develop new and innovative ways capable of stopping this quest for subsidies on oil-related products like kerosene and diesel.
To better understand this, imagine diesel, currently it is the most commonly used petrol-product and the process responsible for setting its price, remains very unclear and the price of imported oil keeps increasing without fixed rules and limits.
However, policy indecision about revising the current prices leads us to incorrect administered prices, not to mention an incredible misuse of resources (not only budgetary resources.)
Nowadays, one of the most important reasons for such populism on diesel is that it makes pumps for agriculture work, and it would be politically unacceptable to raise its prices. Since it would have a tremendous negative impact on the primary sector. That is why a new national program must be developed in order to promote solar-energy usage by the primary sector and by doing this. The primary sector would overpower its dependency on diesel. Anyway, there is a strong and important need to provide the farm sector with a reliable source of energy (to be used by factories, pumps, lights, etc.) this would be done by providing rural power from the grid and using parallel phasing in order to meet the farm sector’s energy requirements.
Due to the initial high costs that would be required for this impressive paradigmatic change involving solar-power pumps it would be highly recommended to put into practice an effective finance scheme consisting on multilateral funding and targeted subventions if it is needed. The main objective is to move forward with solar pumps and in the process, diesel prices would be decreased.
We don’t need multiple oil products subsides. For example, surveys indicate that kerosene is mostly used for lightening purposes; however, it is diverted to modify automotive fuel.
What it is really needed is an expansion of solar-powered lanterns instead of subsided kerosene lightening. Those solar pumps and lanterns could result in 1% saving on the budget for subsides, or even ten percent of the total spending of the budgetary center.
On the other side, we can see some other measures that could result in a great amount of energy and money saving: bicycles and rickshaws moved by solar energy would make mobility easier in a hot country like ours. In the urban areas, these rickshaws would be powered by solar energy, and they could be used as live screens for products and service’s advertisement.
Source: Economic Times (India times)