Importance of Clean Energy Transition
- Economic Necessity: Clean energy is vital for economic growth and climate resilience. It ensures electricity access for millions while reducing climate risks. ( International Energy Agency (IEA) reports and NITI Aayog’s “India Energy Security Scenarios 2047)
- Energy Security: India imports 85% of crude oil and 50% of natural gas, making it vulnerable to global price shocks. (Ministry of Petroleum and Natural Gas (MoPNG) and Petroleum Planning & Analysis Cell (PPAC).
- Job Creation: Transitioning to clean energy can create approximately 1 million jobs by 2030, predominantly in solar, wind, and hydrogen sectors. (Council on Energy, Environment and Water (CEEW) and International Renewable Energy Agency (IRENA) reports.)
Key Drivers for Transition
- Climate Resilience: India faces severe climate challenges; clean energy can significantly reduce carbon emissions and pollution. (India’s Nationally Determined Contributions (NDCs) under the Paris Agreement.)
- Rural Electrification: Renewable energy can provide reliable power to remote areas, improving education and healthcare. (Ministry of New and Renewable Energy (MNRE) and Saubhagya Scheme updates.)
- Global Leadership: India is attracting global investments and strengthening ties through initiatives like the International Solar Alliance. (ISA)
Challenges Hindering Transition
- Inadequate Infrastructure: The current electricity grid cannot efficiently handle renewable energy, leading to inefficiencies. (CEA)
- Fossil Fuel Dependence: Coal dominates India’s energy mix (70%), with significant subsidies slowing the transition. (PFC)
- Financial Stress on DISCOMs: Deeply indebted distribution companies limit investments in clean energy infrastructure.
Measures for Acceleration
- Strengthening Infrastructure: Modernizing the power grid and investing in large-scale energy storage solutions. (MNRE’s “National Energy Storage Mission” and CEA’s grid modernization plans.)
- Financial Reforms: Improving DISCOMs’ financial health and attracting private investments through innovative financing mechanisms. ( Ujwal DISCOM Assurance Yojana (UDAY) scheme)
- Boosting Domestic Manufacturing: Reducing reliance on imports for renewable technologies through local production incentives. ( Production Linked Incentive (PLI) scheme)
Policy Recommendations
- Streamlining Approvals: Simplifying land acquisition and environmental clearances to expedite renewable projects. (MNRE Green Energy Corridor)
- Expanding EV Ecosystem: Developing extensive EV charging networks and promoting indigenous battery manufacturing. (NITI Aayog)
- Ensuring Just Transition: Supporting coal-dependent regions with reskilling programs and alternative livelihood initiatives. (International Labour Organization (ILO) and NITI Aayog reports)
Way Forward
- The clean energy transition in India is essential for achieving energy security, economic growth, and environmental sustainability. Addressing infrastructure, financial constraints, and policy inconsistencies is crucial for long-term success. (NITI Aayog’s “India Energy Security Scenarios 2047” and IEA’s “India Energy Outlook.”)