India’s Clean Energy Transition

IN NEWS:

• India has secured the 67th position in the World Economic Forum’s (WEF) energy transition index. India the only major economy that is “making advances on all aspects of energy transition,” the WEF said in the report.
• The report, developed in collaboration with Accenture, highlights India’s significant improvements in achieving a secure and sustainable energy transition, reducing energy and carbon intensity, increasing renewable energy deployment and attaining universal access to electricity.

INDIA’S ENERGY TRANSITION COMMITMENTS:

I. Under Paris Climate agreement:

1. Reduce emission intensity by 33 to 35 percent by 2030 compared to 2005 levels
2. Produce 40 percent of electricity from non-fossil fuel-based energy resources by 2030.
3. Create additional carbon sink of 2.5 to 3 billion tonnes of carbon dioxide equivalent by 2030 through additional forest and tree cover.

II. During CoP 26:

• During his speech at CoP 26, PM Modi presented a five-point 'amrit tatva' from India on climate change, terming the commitment as 'Panchamrit':
  • Increase non-fossil energy capacity to 500 GW (gigawatts) by 2030.
  • Meet 50 percent of energy requirements from renewable energy (RE) by 2030.
  • Reduce the total projected carbon emissions by 1 billion tonnes (BT) by 2030
  • Reduce the carbon intensity of the economy by less than 45 percent.
  • Achieve net zero carbon by 2070.

INDIA’S RENEWABLE ENERGY TARGETS:

• As part of the Nationally Determined Contributions (as per the Paris Accord on Climate Change), India made a pledge that by 2030, 40% of installed power generation capacity shall be based on clean sources.
• India had set an ambitious target of installing 175 GW of renewable energy capacity by the year 2022. The government later increased this target to 450 GW by 2030.
• As part of the country’s vision to achieve Net Zero Emissions by 2070, India aims to increase renewables capacity to 500 GW by 2030.

PRESENT STATUS:

• Today, India is the world's third largest producer of renewable energy, with 40% of its installed electricity capacity coming from non-fossil fuel sources.
• Of the total installed capacity of 410 GW, non-fossil fuels account for 175 GW (42.5%).

SIGNIFICANCE OF INDIA’S ENERGY TRANSITION:

• Combat climate change:
  • Clean sources like renewables offer a solution to the dichotomy between development and environmental sustainability and help India meet its climate goals.
  • Also, certain renewable sources help in carbon sequestration. Eg: Plants like Jathropha used for bio-ethanol production acts as carbon sinks.
• Attain energy security:
  • India’s fossil fuel requirements are mostly met by imports. Shift to solar and wind energy can fulfill India clean energy demands, thereby diversifying its energy basket and reduce import bill.
• Meet rising energy needs:
  • As per the International Energy Agency’s World Energy Outlook, India is likely to see the world's biggest rise in energy demand this decade. Demand may climb 3% annually due to urbanisation and industrialisation, which makes transition to cleaner and more efficient sources inevitable.
• Supplement depleting energy sources:
  • India lacks sufficient petroleum reserves and its coal reserves are poised to be depleted by the end of this century. However, with 300 clear sunny days, perennial rivers, a 7500 km coastline and rich agrarian fields, India has abundant sources of clean energy.
• Industrial development:
  • India’s energy poverty is a major challenge faced by industries. Transition to clean fuels like hydrogen can reduce the deficit and promote decarbonization of industries.
  • Eg: Ammonia produced from green hydrogen can replace carbon intensive natural gas-based ammonia
• Facilitate e-mobility transition:
  • The Centre is pushing for mass e-mobility through initiatives like FAME-II and Make in India. To attain this goal, energy needs to be affordable and accessible.
• Promote energy accessibility: 
  • Energy sources like renewables can be setup as standalone off-grid units. Hence, renewable energy systems are ideal for remote and hinterland locations of the country, such as North east India, Ladakh, Kashmir and Left-wing extremism affected areas.
• Inclusive growth: 
  • Ensuring basic energy services to all is part of the SDGs and clean energy, which is becoming cheaper by the day, can help attain it.
  • Eg: The lowest tariff discovered in wind energy auctions in 2022 was Rs. 2.84.  
• Women empowerment:
  • Use of biomass such as dung and agricultural waste causes indoor pollution and increase the burden on women.
  • Access to clean energy and the consequent time savings enable women to avail opportunities for their development, like education and skill-training.
• Employment generation:
  • Clean energy sources require skilled manpower for their production and operation. This is suitable for India’s potential demographic dividend, especially for the technically educated youth.
  • Eg: Ethanol production from farm residue can create jobs in Plant Operations, Village Level Entrepreneurs and Supply Chain Management.

• Reaffirms India’s commitments:
  • Despite not being a historical contributor to the greenhouse gas emissions, India has taken up the target for net zero emission. This clearly highlights India’s commitments towards combating climate change in general and Paris agreement in particular.
• Encourages developed world to act:
  • At the 2009 Copenhagen climate talks, the developed nations promised USD 100 billion a year in climate finance to developing nations by 2020. But that goal has not been met.
  • With India proposing a definite path towards transition, pressure will be on the developed countries to provide adequate climate finance to attain the target.
• Facilitates financial support:
  • Committing to a legally binding net-zero target would help India attract some of the trillions of dollars in investment that will be required for a green transformation.

CHALLENGES:

• India’s developmental interests:
  • No country has managed to ensure reasonable levels of wellbeing for its people without increasing energy supply.
  • Given India’s development state and its efforts to lift large shares of its population out of poverty, the country needs to add more to its energy capacity, which poses a challenge to reducing reliance on fossil fuels.
• Challenge to industrialization:
  • India is actively pushing for industrialization through efforts like Make in India and product linked incentive scheme. Hence, India’s emissions from making steel, cement, chemicals and other carbon-intensive materials are set to rise, which can pose a challenge to the transition.
• Question over coal:
  • Coal is used for almost 70% of power generation. Reaching the goal of net-zero greenhouse gas emissions by 2070 for India would mean an overhaul of a coal-reliant energy sector. However, India has not made any clear commitments on cutting down coal.
• Access to finance and technology
  • India’s transition will depend on climate finance, be it for adoption of clean technology, decarbonisation or resource efficiency. It needs to be seen whether the resources wil be made available by developed countries.
• Unjustifiable burden on developing world:
  • Despite being the largest contributors, developed countries have a poor track record on climate action. In this light, the immense pressure on developing countries like India to declare net-zero pledges goes against the idea of common but differentiated responsibilities.
• Import dependency:
  • India relies heavily on imports to support its clean energy transition efforts. For instance, over 80 % of solar cells and modules are imported from China.

WAY FORWARD:

• Explore full potential:
  • India is blessed to have a huge potential in renewable energy resources and the country should exploit this to the maximum extent so as to meet its on-going energy deficit issues and reduce its dependence on other countries.
• Promote energy efficiency practices:
  • In order to attain sustainable transition, India needs to focus equally on promoting energy efficiency practices. This can include measures such as smart metering, efficiency rating for appliances, mandating green building codes etc. 
• Import substitution:
  • Import dependency in renewable energy sector, especially for Rare Earth Minerals (REMs), should be reduced. India has several potential sources of REMs, such as in the beach sands along Kerala coast. What is needed now is a focused mission to efficiently utilize them. 
• Storage technology:
  • Efficient energy storage facilities are vital for facilitating a reliable energy transition. Hence, research should be encouraged in the development indigenous storage facilities.
• Stable policy support:
  • The industry should be consulted while formulating rules, regulations and taxes related to the renewable sector.

PRACTICE QUESTION:

Q. India has set ambitious targets in developing cleaner energy capacity. Analyse the significance and challenges India can face in its transition towards cleaner energy.