Clean Energy: The Road to Sustainability in India

Introduction

India’s shift to clean energy is both environmentally and economically necessary, since it will reduce climate risks and guarantee millions of people have access to power. However, global opposition against climate action, compounded by growing prices and insurance issues, threatens progress. As climate effects worsen, finding solutions that balance sustainability with livelihood security is critical. Accelerating this shift while addressing economic risks is the difficult part.

Why Is India’s Clean Energy Transition So Important?

• Energy Security and Reduced Import Dependence
  • India is extremely exposed to changes in global prices and supply disruptions since it imports 50% of its natural gas and over 85% of its crude oil.
  • The burden of a large import cost can be lessened and energy independence increased by increasing domestic renewable energy.
  • India was the world’s second-largest net importer of crude oil in 2023, according to the International Energy Agency (IEA), and the Russia-Ukraine conflict highlighted the dangers of relying too much on fossil fuels.
  • These risks can be lessened by boosting renewable capacity to 500 GW by 2030, as India promised at COP26.
• Economic Growth and Job Creation
  • A shift to clean energy, especially in the fields of solar, wind, and green hydrogen, may spur job growth, innovation, and industrial expansion.
  • By 2030, one million new jobs might be created in India’s renewable energy sector, according to the Council on Energy, Environment, and Water (CEEW).
  • This change will lessen economic inequality by creating new possibilities in grid infrastructure and manufacturing.
• Climate Resilience and Pollution Control
  • One of the countries most at risk from climate change is India, which frequently experiences heat waves, floods, and rising sea levels.
  • A shift to renewable energy may drastically reduce carbon emissions and air pollution, which kills millions of people every year.
  • In 2021, air pollution killed 8.1 million people worldwide, with China and India bearing the most of the burden.
• Rural Electrification and Energy Access
  • Energy poverty may be decreased by using renewable energy, particularly decentralized solar and wind solutions, which can deliver dependable electricity to isolated locations.
  • In underprivileged areas, this will improve economic activity, healthcare, and education.
  • India increased its solar installations by more than two times in 2024, adding 24.5 GW. The capacity of utility-scale projects increased by 2.8 times from 2023 to 18.5 GW.
• Investment and Global Leadership in Green Energy
  • Through clean energy efforts, India has established itself as a pioneer in renewable energy, drawing in foreign investments and fostering closer diplomatic connections.
  • Technological partnerships and foreign direct investment (FDI) can both be enhanced by sector expansion.
  • A record US$14.5 billion was invested in renewable energy in India for the fiscal year 2021–2022. However, programs like the International Solar Alliance (ISA) and the Global Biofuels Alliance (GBA) demonstrate India’s leadership in international climate diplomacy.
• Green Hydrogen and Industrial Decarbonization
  • Green hydrogen provides a sustainable substitute for coal-based energy, which is used in India’s heavy sectors like steel and cement.
  • India can reduce industrial emissions and become a worldwide exporter by increasing its hydrogen generation.
  • Launched in 2023 with a ₹19,744 crore investment, the National Green Hydrogen Mission seeks to create 5 MMT of green hydrogen per year by 2030.
• Sustainable Urbanization and EV Transition
  • India’s fast urbanization need a transportation and infrastructure environment powered by sustainable energy.
  • Cities may become more sustainable while reducing their reliance on oil by increasing the number of electric vehicles (EVs) and smart grids.
  • To encourage EV adoption, the PM e-Drive Scheme would invest ₹10,900 crore over two years (April 2024–March 2026).
• International Climate Commitments and Carbon Markets
  • India has pledged to achieve net-zero emissions by 2070, which calls for a significant transition to sustainable energy.
  • Financial incentives and international recognition may be obtained by taking part in carbon trading and emissions reduction programs.
  • Industries can exchange carbon credits under the Carbon Credit Trading Scheme (2023), which was introduced by the Energy Conservation (Amendment) Act, 2022. Meanwhile, India’s revised Nationally Determined Contributions (NDCs) aim to reduce emissions by 45% by 2030.

Which are the Main Obstacles to India’s transition to Clean Energy?

• Inadequate Grid Infrastructure and Storage Limitations
  • The unpredictability of renewable energy sources is now too much for India’s electrical infrastructure to manage, resulting in frequent interruptions and inefficiency.
  • It is difficult to integrate solar and wind electricity, particularly during periods of high demand, due to the unavailability of large-scale energy storage technologies.
  • The National Electricity Plan-II of the Central Electricity Authority (CEA) estimates that India will require over lakh crore investment in transmission infrastructure to meet its power demand by 2032.
• Fossil Fuel Lobby and Policy Inconsistencies
  • Approximately 70% of India’s electricity output now comes from coal, which dominates the country’s energy balance.
  • The shift to greener alternatives is slowed by the coal and oil sectors’ continued receipt of substantial subsidies and legislative support.
  • Subsidies for fossil fuels and sustainable energy increased by over 40% in FY 2023. By FY 2027, the Ministry of Coal wants to have produced 1.3 billion tons of domestic coal.
  • Coal mining and other fossil fuel-based businesses employ millions of people, and a quick transition to renewable energy might cause job losses and financial hardship in many areas.

• Financial Stress on DISCOMs (Distribution Companies)
  • Due to their massive debt, India’s electricity distribution firms (DISCOMs) are unable to make investments in infrastructure for sustainable energy.
  • Their financial difficulties are exacerbated by high transmission losses, inadequate tariff collection, and subsidies for fossil fuel-based electricity.
  • According to the RBI research, state DISCOMs continue to be a financial burden, with cumulative losses by 2022–2023 amounting to ₹6.5 lakh crore, or 2.4% of GDP.
• Slow Progress in Domestic Manufacturing and Supply Chain Gaps
  • India’s sustainable energy transition is susceptible to supply chain disruptions worldwide as it still depends on imports for solar panels, wind turbines, and lithium-ion batteries.
  • Government incentives notwithstanding, domestic production is still in its infancy.
  • For example, China supplied 62.6% of the $7 billion worth of solar equipment that India bought in 2023–2024.
  • Although the PLI project for solar PV manufacturing has a ₹24,000 crore budget, production scaling up would take time.
• Land Acquisition and Environmental Clearances
  • Large-scale renewable energy projects need a lot of land, which frequently causes environmental issues, disputes with farmers, and relocation.
  • For example, the state government’s decision to give land to the Adani Group for the construction of a 450 MW solar power project has been met with protests by Rewari locals in Jaisalmer, Rajasthan.
  • Project development is slowed down by delays in land permissions and worries about the impact on biodiversity.
• Slow Adoption of Electric Vehicles (EVs) and Charging Infrastructure
  • Reducing reliance on oil requires an EV transition, but obstacles including a lack of charging stations, expensive batteries, and sluggish customer uptake impede development.
  • Outside of major cities, an inadequate charging network restricts growth. Only 12,146 public EV charging stations were available in India as of February 2024, compared to the 3.9 million public and semi-public charging stations that are needed, with one station for every 20 vehicles.

What Steps Can India Take to Promote the Transition to Clean Energy?

• Strengthening Grid Infrastructure and Energy Storage
  • India has to invest in extensive battery storage and update its electrical system to smoothly incorporate intermittent renewable energy sources.
  • Grid resilience may be improved by creating hybrid renewable energy projects, smart grids, and pumped hydro storage.
  • To lower transmission losses, decentralized renewable energy sources like microgrids and rooftop solar should be encouraged.
  • The Revamped Distribution Sector Scheme (RDSS) and the Green Energy Corridor can work together to provide effective electricity distribution and evacuation.
• Financial Reforms for DISCOMs and Renewable Investments
  • It is crucial to revitalize power distribution firms (DISCOMs) by enhancing revenue collection, cutting losses, and guaranteeing prompt payments to producers of renewable energy.
  • Private investment may be drawn in via creative financing strategies such concessional loans, viability gap finance, and green bonds.
  • Increasing risk-sharing options for renewable energy projects will boost investor trust.
• Boosting Domestic Manufacturing and Supply Chain Resilience
  • It is crucial to increase domestic manufacturing in order to lessen reliance on imported wind turbines, solar modules, and lithium-ion batteries.
  • Local manufacturing will be promoted by extending the Production-Linked Incentive (PLI) program for solar PV and battery storage.
  • International investors might be drawn in by establishing dedicated renewable energy zones with tax breaks.
  • Energy security will be improved by encouraging research and development (R&D) in alternate battery chemistries, such as solid-state and sodium-ion batteries.
• Accelerating Land Acquisition and Environmental Approvals
  • Implementation may be accelerated by streamlining land acquisition for renewable energy projects while guaranteeing a low ecological effect.
  • Conflicts can be decreased by digitizing land records, implementing a one-window clearance system, and involving local people in decision-making.
  • In order to prevent rivalry with agriculture, renewable energy parks ought to be established on wastelands and damaged land.
  • Investor trust will be increased by expediting permits under the Environmental Impact Assessment (EIA) system.
• Expanding Electric Vehicle (EV) Ecosystem and Green Mobility
  • EV adoption may be accelerated by creating a vast network of EV charging stations, providing incentives for battery swapping infrastructure, and encouraging domestic battery production.
  • Reliance on fossil fuels will decrease with the electrification of urban public transportation and the integration of EVs with renewable energy.
  • Emissions in the logistics industry will be reduced by promoting electric freight and long-haul transportation.
  • A comprehensive green mobility ecosystem may be produced by the combination of PM E-Drive and the National Electric Mobility Mission Plan (NEMMP).
• Diversifying Energy Mix with Green Hydrogen and Bioenergy
  • Long-term sustainability may be promoted by increasing the generation of green hydrogen for energy storage and industrial decarbonization.
  • Costs can be decreased by creating a local electrolyzer manufacturing ecosystem and using offshore wind energy to produce hydrogen.
  • Rural employment and energy security may be improved by promoting waste-to-energy, biofuels, and biomass-based electricity.
  • India’s position in alternative fuels would be strengthened by tying the Global Biofuels Alliance (GBA) and the National Green Hydrogen Mission together.
• Decentralized Renewable Energy for Rural and Agricultural Growth
  • In rural regions, increasing off-grid solar, microgrids, and solar pumps can improve agricultural output and energy availability.
  • Encouraging solar farming, or agrivoltaics, may guarantee dual land use without compromising food security.
  • Enhancing microfinance institutions’ funding systems for small-scale renewable projects can promote community involvement.
  • The Rooftop Solar Program and PM-KUSUM working together will hasten the deployment of decentralized solar.

Conclusion

Energy security, economic expansion, and environmental sustainability all depend on India’s clean energy transition. This change will happen more quickly if issues like grid infrastructure, budgetary limitations, and inconsistent policies are resolved. Long-term success requires a balanced strategy that guarantees livelihood security and sustainability. SDGs 7 (Affordable and Clean Energy), 8 (Decent Work and Economic Growth), and 13 (Climate Action) are all in line with this.

Frequently Asked Questions(FAQs)

Sources:

• https://timesofindia.indiatimes.com/blogs/voices/the-role-of-renewable-energy-technologies-in-sustainable-development/
• https://pib.gov.in/PressNoteDetails.aspx?NoteId=153385&ModuleId=3&reg=3&lang=1
• https://www.business-standard.com/india-news/india-preps-for-next-1000-years-building-sustainable-energy-path-pm-124091600479_1.html
• https://www.teriin.org/
• https://www.nbr.org/publication/indias-energy-mix-and-the-pathways-to-sustainable-development/
• https://en.wikipedia.org/wiki/Sustainable_energy
• https://energyalliance.org/india/