In India, the expiration of some federal incentives for renewable energy last year has not put a damper on the outlook for wind and solar power.
Wind power is now cost competitive with new coal-fired generation in India, according to a report from HSBC [pdf]. Falling costs are just one reason for the increased interest in wind. For the first time, India has identified water as a scare natural resource in its most recent five-year plan. Nearly 90 percent of India’s industrial water demand comes from thermal power plants, according to the HSBC report.
The appeal of some renewables, such as wind and solar photovoltaic, is that they use far less water than coal,
nuclear, or natural gas power plants. Across the globe, water stress is growing within the energy industry and power plants have to partially shut down when there isn’t enough water for cooling. In India, water shortages just before monsoon season in 2012 forced hydro generation and thermal power plants to partially close.