India's Green Energy Strides

India's Green Energy Strides

The Asian Development Bank’s (ADB) Asia–Pacific Climate Report 2024 highlights India’s strategic transition from unsustainable fossil fuel subsidies to clean energy investments. The ‘remove, target, and shift’ policy approach has significantly reduced fossil fuel subsidies, freeing financial resources for renewable energy development.

Key Highlights:

• Fossil fuel subsidies reduced by 85% between 2014 and 2023 (from $25 billion in 2013 to $3.5 billion in 2023).
• Redirection of funds towards solar parks, electric mobility, and grid modernization.
• Increased adoption of clean cooking fuel (LPG) in rural areas.
• Implementation of incremental fuel taxation between 2010 and 2017 to support clean energy programs.
• Revenue from coal cess used to fund initiatives like the Green Energy Corridor and National Solar Mission.

Achievements in Renewable Energy Development

Growth in Installed Capacity:

• Renewable energy capacity expanded by 24.2 GW (13.5%), reaching 203.18 GW in October 2024 (compared to 178.98 GW in 2023).
• Solar energy capacity surged by 27.9% to 92.12 GW (from 72.02 GW in 2023), with a potential of 748 GW as per the National Institute of Solar Energy (NISE).
• Wind energy capacity grew by 7.8%, reaching 47.72 GW in 2024.
• Large hydro projects contribute 46.93 GW, and nuclear power adds 8.18 GW.
• India ranks 4th globally in total renewable energy capacity, 4th in wind energy, and 5th in solar power, reinforcing its leadership in clean energy transitions.

Future Renewable Energy Targets:

• 500 GW of renewable energy capacity targeted by 2030, fulfilling India’s commitment to Panchamrit at COP26.
• Ensuring 50% of the energy mix comes from renewables by 2030.
• Cutting carbon intensity by 45% and achieving net-zero emissions by 2070.
• Scaling up green hydrogen production to 5 million tonnes annually by 2030, backed by 125 GW of dedicated renewable energy.

Major Schemes & Government Initiatives
Union Budget 2024-25 Allocations:

• ₹10,000 crore allocated for grid-based solar power, a 110% increase from the previous year.
• ₹6,250 crore for PM-Surya Ghar Muft Bijli Yojana, promoting solar rooftops.
• Customs duty exemption on 25 critical minerals for the renewable sector.

PM-KUSUM Scheme:

• Encourages solar energy adoption in agriculture.
• Target to install 34.8 GW of decentralized solar capacity.
• Reduces reliance on diesel and grid electricity for irrigation.

National Green Hydrogen Mission:

• ₹19,744 crore investment for establishing green hydrogen production and utilization.
• Focus on industrial decarbonization, heavy transport, and energy storage.

Solar Park Scheme:

• 55 solar parks with a cumulative capacity of 40 GW approved.
• Ensures simplified land acquisition and pre-developed infrastructure for investors.

PLI Scheme for Solar Manufacturing:

• Incentivizes domestic production of high-efficiency solar modules.
• Aims to establish 65 GW of annual manufacturing capacity by 2026.

Green Energy Corridor:

• Strengthens transmission networks to integrate renewable energy into the grid.
• Phase I completed, Phase II expanding to other regions.

Viability Gap Funding (VGF) for Offshore Wind:

• Focus on developing 30 GW of offshore wind capacity by 2030.
• Prioritizing Gujarat and Tamil Nadu for offshore wind projects.

International Leadership:

• International Solar Alliance (ISA) co-founded by India, mobilizing $1 trillion in investments.
• One Sun, One World, One Grid (OSOWOG) project promoting a global interconnected renewable energy grid by 2050.

Challenges in Renewable Energy Expansion
Land Acquisition Issues:

• Competition for land due to agricultural and population constraints.
• Policy hurdles and delays in project approvals.

Technology and Supply Chain Constraints:

• Heavy reliance on Chinese imports for solar components (94% of PV cells and 93% of modules imported from China in FY23).
• Limited domestic manufacturing capabilities for solar, wind, and hydrogen technologies.

Grid Infrastructure Limitations:

• Aging power grids require upgrades to accommodate intermittent energy sources.
• Lack of energy storage solutions poses challenges for stability and reliability.

Investment and Financing Barriers:

• High capital requirements for renewable projects.
• Policy unpredictability affects investor confidence.

Regulatory Inconsistencies:

• State-level variations in renewable policies create uncertainty.
• Delays in approvals hinder project timelines.

Skilled Workforce Shortages:

• Need for expertise in solar, wind, hydrogen, and storage technologies.
• Skill development programs required for a trained workforce.

Recommendations for Sustainable Renewable Energy Growth
Land Optimization Strategies:

• Utilize barren, non-agricultural land for solar and wind projects.
• Promote rooftop solar and urban renewable energy integration.
• Implement land pooling models to streamline project approvals.

Enhancing Domestic Manufacturing:

• Strengthen the PLI scheme to support local solar and wind industries.
• Develop public-private partnerships to reduce import dependency.
• Negotiate technology transfer agreements with global players.

Grid Modernization & Energy Storage:

• Invest in smart grids, advanced battery storage, and transmission upgrades.
• Expand cross-border energy networks for improved energy stability.

Boosting Green Energy Investments:

• Offer green bonds and renewable energy investment funds.
• Introduce clear long-term incentives to attract private investors.
• Establish a dedicated renewable energy financing institution.

Regulatory & Policy Reforms:

• Harmonize renewable energy policies across states.
• Implement centralized project approval mechanisms for faster execution.

Skill Development & Workforce Expansion:

• Scale up training programs for emerging energy technologies.
• Establish specialized centers like Solar Technology Application Resource Centre (STAR-C).

India’s transition towards a low-carbon future is backed by strong policy frameworks, increasing investments, and international cooperation. Addressing existing challenges through technological advancements, financial incentives, and regulatory streamlining will be crucial in achieving its 500 GW renewable energy target by 2030 and leading the global clean energy revolution.

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