Energy Policy and Strategic Framework in India's Transition to Clean Energy

Context

• India is undergoing a significant energy transition, balancing between fossil fuel dependency and accelerating the shift to renewable energy to achieve net-zero carbon emissions by 2070.
• The current compartmentalized decision-making structure in energy policy needs integration to address international geopolitical tensions and technological advancements effectively.

Details

Key Points

• Dual-Pronged Energy Policy:
  • Fossil Fuels: Managing import dependency, diversifying import sources, strategic reserves, domestic exploration, demand conservation, efficiency, and environmental protection.
  • Renewable Energy: Commitment to net-zero carbon emissions by 2070, reducing carbon intensity, and achieving 500 GW of non-fossil fuel electricity generation by 2030.
• Ministry Roles and Integration:
  • Fossil Fuels: Handled by the Ministry of Petroleum and the Ministry of Coal.
  • Renewables: Managed by the Ministries of Renewables, Power, Heavy Industry, Mines and Minerals, IT, and Environment.
  • Need for Integrated Policy: Address the compartmentalized structure for cohesive energy policy formulation and implementation.
• Geopolitical Context and Supply Chain Resilience:
  • Global Competition:US, its allies vs. China and Russia, impacting green transition.
  • China’s Monopoly: Dominance in materials essential for green energy and low-cost technology.
  • Strategic Measures: Duties on Chinese imports, PLI scheme, and potential development of a strategic frame similar to the US Chips and Science Act.
• Strategic Framework for Convergence and Sustainability:
  • Hydrocarbon PSEs and Energy Companies: Prevent duplicity of effort and resources.
  • Supply Chain Volatility: Addressing future requirements of copper, lithium, nickel, and cobalt as warned by IEA.
  • National Security and Green Technology: Balancing competitiveness of clean energy and mitigating security risks.
  • Private Capital and Green Investment: Incentivizing private investment, stepping up public investment, and creating a roadmap for the transition.
• Policy Recommendations:
  • Energy Strategy Document: Prepare a document titled “Energy strategy: Towards convergence, security, and sustainability” addressing the above issues.
  • Public and Private Sector Synergy: Identify sectors for special incentives and increase public investment to attract private capital.
• Addressing Global and Domestic Challenges:
  • International Forces: Impact of geopolitical tensions on energy policy.
  • Technological Innovation: Adapting to exponential technological advancements in the energy sector.
  • Polarized Context: Navigating through a polarized international geopolitical landscape for sustainable energy transition.

Renewable Energy in India

Ambitious Targets:

• India has set a target to achieve 175 GW of renewable energy capacity by 2022 and 450 GW by 2030. The focus is on solar, wind, biomass, and small hydro power.

Policy Support:

• Government initiatives such as the National Solar Mission, incentives for solar rooftop installations, and wind power auctions have significantly boosted renewable energy capacity.

Net Zero Carbon Emissions

Long-term Commitment:

• India has committed to achieving net zero carbon emissions by 2070, aligning with global efforts to limit global warming to below 2°C and pursue efforts to limit the increase to 1.5°C.

Sources:

IndianExpress

PRACTICE QUESTION Q. Examine the impact of international geopolitical tensions on India's green energy transition. What measures should the Indian government adopt to ensure supply chain resilience, technological competitiveness, and national security in the context of clean energy?