Nationwide, India has more than 50 000 petrol pumps, each of which needs more than 5 KW of electricity every day to operate, i.e. over 1 440 KW of power a year. Most of the petrol pumps in India are powered by diesel generator sets. Yet, these days, solar-powered electric pumps can produce the power required. In a country that enjoys more than 300 sunny days a year, the advantage of these solar-powered pumps is obvious.
During the day, the solar energy is transformed into electricity to power the pumps, and the surplus is fed back into the grid, which supplies the power the pumps need at night.
There are many benefits for the operator: electricity bills are minimised, profits rise, and there is less tax on profits induced by the amortisation of the installation costs.
The Indian government has clearly understood the advantages of installing these pumps and subsidises 30% of their initial cost as part of the national plan to reduce greenhouse gas emissions. Although modest, this example illustrates the number and diversity of solutions we can implement to rise to the unprecedented climate change challenge.
BNP Paribas Asset Management follows these developments closely as part of a broader analysis of all environmental sectors worldwide. The decade from 2020 will undoubtedly bring a new revolution: the green revolution.
To read more on the theme of sustainable and responsible investing (SRI), click here > More articles written by Alexandre Jeanblanc.