Thanks to the boom in renewable energy, the marginal cost of electricity will continue to fall sharply and India will emerge as the least expensive producer of renewable energy, Gautam Adani, president of the Adani group said today.
Speaking at the global TiE conference, Adani said that since renewable energy sources will always be free, there is no limit to the number of electrons that a power producer can extract from a square inch of silicon. “What makes this combination of solar, wind and storage even more transformative is its combination with digitization,” he said. Adani said that, like energy, the cost of storage, processing and network-based digitization will continue to follow a steep decline curve for several decades and the marginal cost of managing bits and bytes will continue to fall.
Adani cited the example of a drastic 95% drop in data prices that has led to a 56-fold increase in data consumption in the last five years.
“Therefore, in addition to being individually disruptive, when combined, the implications of renewable energy and information technology based on marginal costs are impressive. Therefore, I expect inexpensive green energy in combination with digital technologies. , which include sensors and the Internet of Things, artificial intelligence and machine learning, 5G infrastructure and the cloud will converge to give us the ability to economically micro-size various processes and turn each process into a service, “he said.
Micro agriculture, micro water, micro healthcare, micro housing, micro education, micro manufacturing, the list is endless and the implications of renewable energy and technology to downsize existing processes are profound for both – urban – and even more – for rural India, he added.
On the implications of Covid-19, Adani said that it led to transformative changes around the world that will help the country in the registry. “The pandemic has brought home the fact that hyper-efficient supply chains are also hyper-fragile. The main objective driving supply chains for the past 20 years was cost. After Covid, flexibility will be treated as equally important and it will allow supply chains to evolve to where they should have been in the first place – multiple sources and lots of localization to support individual markets, “he said.
Furthermore, the acceleration of digital technology to manage operations remotely means that there will be a structural shift between global locations where people need to be and locations where operations need to run. “The pandemic has taught us that the conventional need for proximity may be irrelevant and prone to risk. India already had an advantage in this area thanks to the evolution of its digital services. It is now positioned to be a
beneficiary of this change in the coming days, as more companies plan to divide the execution and control operations, ”said Adani.
Both areas are transformative and can help create millions of new local jobs in the manufacturing, supply chain and technology services sectors, he said.
Adani is a leading player in electricity generation and distribution, port operations, urban gas distribution and has entered airport operations. It plans to become the world’s largest renewable energy company by the end of 2025.
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