Model Answer

Introduction

India’s energy sector is undergoing a significant transformation aimed at increasing its energy capacity, with a strong focus on sustainability and inclusivity. Several key factors contribute to this transformation:

Sustainability of India’s Energy Transformation

1. Renewable Energy Focus:
   India’s commitment to renewable energy is at the core of its sustainable energy transformation. From 2014 to 2023, India’s cumulative renewable energy capacity surged from 35 GW to 174.53 GW, with a target of 500 GW by 2030. This growth highlights India’s commitment to reducing carbon emissions and meeting global climate goals.
2. Energy Efficiency:
   Energy efficiency is crucial for sustainability. The National Mission for Enhanced Energy Efficiency (NMEEE) promotes energy-efficient practices across sectors, reducing energy consumption while meeting growing demands.
3. Research and Innovation:
   India is investing heavily in innovative energy solutions. For example, the Green Hydrogen Mission aims to develop green hydrogen as a clean energy storage solution, reducing reliance on fossil fuels and enhancing energy security.

Inclusivity of India’s Energy Transformation

1. Gender Inclusivity:
   India’s energy transformation is also gender-inclusive, with policies addressing women’s unique needs. The Pradhan Mantri Ujjwala Yojana, which provides LPG connections to women, reduces health risks associated with traditional biomass fuels, empowering women and improving their quality of life.
2. Equitable Energy Access:
   Ensuring equitable access to energy is vital for poverty alleviation. The Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) aims to achieve universal household electrification, ensuring that no household is left behind in the energy transition.
3. Community Engagement:
   Local communities are engaged through initiatives like the PM-Kusum scheme, which provides subsidies for solar irrigation pumps, and the PM Surya Ghar Muft Bijli Yojana, which supports residential rooftop solar panel installation, creating grassroots participation in the energy transformation.

Conclusion

While India’s energy transformation is both sustainable and inclusive, challenges like high transmission losses and financing remain. However, continued policy commitment and investment are crucial for achieving long-term success.

Model Answer

India has made considerable progress in adopting Decentralized Renewable Energy (DRE), focusing on generating and utilizing renewable energy at the point of consumption. As of now, there are over 500,000 DRE installations across the country, including technologies such as solar-powered irrigation and pumps. In 2021, approximately 179 million people gained access to electricity through DRE solutions, a significant increase from just 35 million in 2012. In 2022, the Ministry of New and Renewable Energy launched a framework to promote DRE livelihood applications, aiming to enhance access to sustainable energy in rural and remote areas. This underscores the growing importance of DRE in meeting India’s renewable energy goals.

Key Challenges in DRE Adoption

1. Policy and Regulatory Barriers

• Rollback of Incentives: Reductions in subsidies for rooftop solar systems (RTS) have dampened enthusiasm, especially among state electricity distribution companies.
• Centralized Tendering Processes: Schemes like KUSUM for solar agricultural pumps often rely on centralized tenders, which prevent local partnerships and reduce community-level involvement in DRE projects.

2. Financial and Investment Challenges

• Insufficient Investment: To meet the 2030 target of 450 GW renewable energy capacity, India needs an annual investment of USD 18 billion by 2024, which is challenging to achieve.
• Fragmented Market and Limited Private Capital: DRE markets, including RTS and off-grid solar, remain small and fragmented, with limited private sector interest due to perceived financial risks.
• Information Asymmetry: A lack of targeted project preparation and transaction advisory further complicates access to capital, particularly for smaller DRE developers.

3. Technical Challenges

• Emerging Technologies Integration: The integration of advanced technologies such as IoT for energy management and energy storage is still in its infancy, limiting DRE system effectiveness and scalability.

Conclusion

To overcome these challenges, India must implement stronger policy incentives, attract increased private sector participation, and support the development of emerging technologies in DRE. The government, in collaboration with the private sector, can play a crucial role in promoting DRE through improved financing models, regulatory frameworks, and technological adoption.

Model Answer

Challenges to India’s Energy Security

1. Policy-related Issues
   India struggles to attract substantial international investment in domestic hydrocarbon exploration. Notably, initiatives like the New Exploration Licensing Policy (NELP) and the Hydrocarbon Exploration and Licensing Policy (HELP) have not generated the anticipated interest from global energy players. Delays due to regulatory and environmental clearances further hinder coal mining and domestic energy production .
2. Economic Challenges
   Over 80% of India’s energy needs rely on coal, oil, and natural gas, of which the country has limited domestic reserves. This dependency drives up the import bill, increases fuel subsidies, and worsens the Current Account Deficit (CAD), exposing the economy to price volatility in the global market .
3. Accessibility Barriers
   In rural areas, biomass constitutes around 85-90% of primary fuel for cooking, posing health risks due to indoor air pollution. The lack of skilled labor and developed infrastructure impedes progress in making energy accessible across all regions (source: provided content).
4. External Geopolitical Pressures
   Global political tensions, such as those between the USA and Iran, complicate India’s energy imports. These geopolitical dynamics force India to adjust its import strategy, as seen with reduced oil imports from Iran .

Measures Implemented for Energy Security

1. Efficiency Enhancement Initiatives
   India launched the National Mission for Enhanced Energy Efficiency, which conducts cost-benefit analyses on energy-efficient technologies across sectors. Additionally, BS VI vehicle fuel efficiency standards were introduced in 2020 to reduce emissions .
2. Strategic Petroleum Reserves
   The establishment of strategic petroleum reserves under the Indian Strategic Petroleum Reserves Ltd. aims to mitigate supply disruptions due to external crises, such as conflicts or natural disasters .
3. Policy and Scenario Planning
   The India Energy Security Scenarios, 2047, launched by NITI Aayog, enables India to model future energy scenarios and prioritize renewable energy. India aims to source 50% of its energy from renewables by 2030.
4. Energy Diplomacy and Accessibility
   The Indo-US Nuclear Deal enhances India’s nuclear energy capabilities. Programs like the Pradhan Mantri Ujjwala Yojana promote clean cooking fuel in rural areas, and the PM KUSUM scheme supports solar irrigation. Additionally, “Energy Atmanirbharta” by 2040 aims to boost energy self-sufficiency