David Wilson, CEO of Energy Exemplar, reacts to Indian government’s green package announcement:
“The Union Finance Minister’s Budget speech underscored the government’s determination to promote clean energy and sustainable living in the years ahead.
“Asset investment in green energy, in the form of renewable energy projects and promoting green hydrogen, among other things, is absolutely vital to the transition to net zero. That's why the Indian government has taken this step.
“But this assumes that the global situation will unfold predictably over the next 25 years, while just a glance at the last three years shows how unlikely that is. This is why modelling has become such an important component of this conversation, and one that is being adopted globally by energy companies.
“Advanced simulation platforms, like PLEXOS, allow governments, organisations, and private investors to get a much clearer picture of how things will unfold. Using fundamental modelling, those attempting to chart a course across the seas of the future can generate digital versions of real assets in order to simulate the impact on assets, prices, and consumers (to name just three) of future scenarios. They can do this from a time range of five minutes ahead to decades. This is particularly important when trying to introduce relatively new energy forms, as the Indian government aims to do with the National Green Hydrogen Mission. New green energy is clearly critical, but so is ensuring that the assets you have can handle a more diverse mix without sacrificing security of supply.
“It’s easy to see why modelling is a useful tool during volatile times. More than that, however, it’s an essential tool. In the case of India, as in other countries, we’re talking about massive investment, incorporating significant changes to the way infrastructure and heavy industry operate – huge sums of money which could be directed elsewhere.
“No government wants to find itself stumbling around in the dark. But the truth is that without sophisticated modelling, this level of investment, and the absolutely vital climate aims of the government, are at risk.”