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PERSPECTIVE: India’s Green Energy Transition

13th February, 2024

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Context

  • As the Union Finance Minister prepares to present the Union Budget 2024, expectations are high that it will accelerate India’s transition to a low-carbon, climate resilient economy.

Details:

  • In this show the guest talked about the various govt policy initiatives towards India's green energy transition and also recently launched 'Pradhan Mantri Suryodaya Yojana,' a pioneering government initiative aimed at installing rooftop solar power systems in one crore households across the nation.

INTRODUCTION:

  • India's interim 2024-25 budget seen incentivizing renewable, clean energy sectors. The Indian government is expected to announce measures aimed at boosting the renewable and clean energy sectors in its interim budget Feb.
  • India’s announcement that it aims to reach net zero emissions by 2070 and to meet fifty percent of its electricity requirements from renewable energy sources by 2030 is a hugely significant moment for the global fight against climate change. India is pioneering a new model of economic development that could avoid the carbon-intensive approaches that many countries have pursued in the past – and provide a blueprint for other developing economies.
  • The scale of transformation in India is stunning. Its economic growth has been among the highest in the world over the past two decades, lifting of millions of people out of poverty. Every year, India adds a city the size of London to its urban population, involving vast construction of new buildings, factories and transportation networks.
  • Coal and oil have so far served as the bedrock of India’s industrial growth and modernization, giving a rising number of Indian people access to modern energy services. This includes adding new electricity connections for 50 million citizens each year over the past decade.
India’s sheer size and its huge scope for growth mean that its energy demand is set to grow by more than that of any other country in the coming decades. In a pathway to net zero emissions by 2070, we estimate that most of the growth in energy demand this decade would already have to be met with low-carbon energy sources. It therefore makes sense that Prime Minister Narendra Modi has announced more ambitious targets for 2030, including installing 500 gigawatts of renewable energy capacity, reducing the emissions intensity of its economy by 45%, and reducing a billion tonnes of CO2.

Overview of the Paris Agreement

  • The Paris Agreement, a significant milestone in global efforts to combat climate change, emerged from the UN Climate Change Conference (COP21) held in Paris on December 12, 2015.

Characteristics of a Low Carbon Climate Resilient Economy:

  1. Renewable Energy Sources
  • Utilization of solar, wind, hydro, and biofuels instead of fossil fuels.
  • Aimed at reducing greenhouse gas emissions and dependency on coal, oil, and gas.
  1. Energy Efficiency and Conservation
  • Promotion of energy efficiency measures to minimize energy consumption and waste.
  • Implementation of demand management strategies to optimize energy usage.
  1. Climate-Smart Agriculture and Forestry
  • Adoption of low-carbon and climate-smart practices in agriculture, forestry, and land use.
  • Emphasis on enhancing carbon sinks and reducing emissions from deforestation and degradation.
  1. Green Finance and Investment
  • Encouragement of green finance mechanisms to mobilize resources for sustainable projects.
  • Promotion of investment and trade in low-carbon and climate-resilient activities and products.
  1. Social and Environmental Justice
  • Commitment to enhancing social and environmental justice, equity, and inclusion.
  • Ensuring fair distribution of benefits and costs of the transition to a low-carbon economy.
  • Protection and empowerment of vulnerable groups to mitigate adverse effects and promote sustainable development.

Key Features and Implementation

  • Legally Binding Treaty: The Paris Agreement is a legally binding international treaty aimed at addressing climate change and its adverse effects.
  • Entry into Force: It came into force on November 4, 2016, signifying a commitment by participating nations to take concrete actions to mitigate climate change.
  • Participation: Currently, 195 Parties, including 194 States and the European Union, have ratified or acceded to the Paris Agreement.
  • Net-Zero Emissions Goal: The Agreement signifies a pivotal shift towards achieving a world with net-zero emissions, aiming to limit global temperature rise to well below 2°C above pre-industrial levels and pursuing efforts to limit it to 1.5°C.
  • Alignment with Sustainable Development Goals (SDGs): Implementation of the Paris Agreement is crucial for achieving the Sustainable Development Goals (SDGs), recognizing the interlinkages between climate action and sustainable development.

Goals of the Paris Agreement

  • Temperature Limit: The primary goal is to substantially reduce global greenhouse gas (GHG) emissions to hold the increase in global average temperature to well below 2°C above pre-industrial levels, with efforts to limit it to 1.5°C.
  • Periodic Assessment: The Agreement mandates periodic assessment of collective progress towards its goals and purpose, ensuring transparency and accountability.
  • Financial Support: Developed nations commit to providing financial support to developing countries to mitigate climate change, build resilience, and enhance adaptation capabilities.

Functioning and Mechanisms

  • Five-Year Cycle: The Paris Agreement operates on a five-year cycle, with countries expected to enhance their climate action plans every five years.
  • Nationally Determined Contributions (NDCs): Each country is required to submit updated NDCs, outlining their national climate action plans and targets to reduce emissions and adapt to climate change.

India's Nationally Determined Contribution (NDC)

India, as a party to the UNFCCC and the Paris Agreement, has outlined its Nationally Determined Contribution (NDC), which comprises specific targets aimed at mitigating climate change and promoting sustainable development.

Quantifiable Targets from 2015 NDC

  • Reduction of Emissions Intensity of GDP: India aimed to decrease the emissions intensity of its Gross Domestic Product (GDP) by 33 to 35% by 2030 compared to the levels in 2005.
  • Increase in Non-Fossil Fuel-Based Energy: India committed to achieving about 40% of its cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.

Updated NDC Targets (August 2022)

  • Enhanced Reduction of Emissions Intensity of GDP: India raised its target to reduce the emissions intensity of its GDP to 45% by 2030 from the 2005 level.
  • Increased Non-Fossil Fuel-Based Energy Capacity: The target for non-fossil fuel-based energy resources in the electric power installed capacity has been raised to 50% by 2030.

Additional Renewable Energy Target India has set an ambitious target of achieving 500 gigawatts (GW) of renewable energy capacity by 2030 as part of its commitment under the Paris Accord.

Budget's Role in Promoting Green Energy

  • Investment in Renewable Energy Infrastructure: The upcoming budget can allocate funds for the development of renewable energy infrastructure, such as solar and wind farms, to accelerate the achievement of India's renewable energy targets.
  • Incentives for Renewable Energy Projects: Providing financial incentives, tax breaks, and subsidies for renewable energy projects can encourage private sector investment in green energy initiatives.
  • Research and Development Funding: Allocating funds for research and development in renewable energy technologies can spur innovation and drive down the costs associated with renewable energy production.
  • Grid Modernization: Investment in modernizing the electrical grid infrastructure can facilitate the integration of renewable energy sources into the grid and ensure efficient distribution of green energy.
  • Promotion of Electric Vehicles: Supporting the adoption of electric vehicles through incentives and charging infrastructure development can reduce reliance on fossil fuels for transportation, contributing to overall emissions reduction goals.
  • Awareness and Education Campaigns: Budgetary allocations for awareness and education campaigns can promote public understanding of the importance of transitioning to green energy and encourage sustainable practices among citizens and businesses.

Pradhan Mantri Suryodaya Yojana: Empowering India with Solar Energy

The 'Pradhan Mantri Suryodaya Yojana' is a groundbreaking government initiative designed to facilitate the installation of rooftop solar power systems in one crore households nationwide.

Rooftop Solar Panels: Rooftop solar panels, a key component of this scheme, are photovoltaic panels installed on the roof of a building, directly connected to the main power supply unit.

Benefits:

  • Reduced Electricity Consumption: By harnessing solar energy, households can significantly reduce their reliance on grid-connected electricity, leading to substantial savings in electricity costs.
  • Surplus Power Generation: Any surplus solar power units generated from the rooftop solar plant can be exported to the grid, by metering provisions.
  • Monetary Incentives: Consumers can receive monetary benefits for the surplus power they export, subject to prevailing regulations and policies.

Rooftop Solar Programme: The government initiated the Rooftop Solar Programme in 2014, aiming to achieve a cumulative installed capacity of 40,000 megawatts (MW) or 40 gigawatts (GW) by 2022. However, this target remained unmet, prompting the government to extend the deadline to 2026.

Pradhan Mantri Suryodaya Yojana's Role: In light of the unmet targets, the Pradhan Mantri Suryodaya Yojana appears to be a strategic initiative to accelerate progress towards achieving the 40 GW rooftop solar capacity goal. By focusing on households and incentivizing solar energy adoption, the scheme aims to play a pivotal role in realizing India's solar energy potential.

India's Solar Initiatives and Capacity

  • Total Installed Solar Capacity India's solar power installed capacity has reached approximately 73.31 GW as of December 2023. Rajasthan leads with 18.7 GW, followed by Gujarat with 10.5 GW.
  • Rooftop Solar Capacity The total rooftop solar installed capacity stands at around 11.08 GW as of December 2023. Gujarat leads with 2.8 GW, followed by Maharashtra with 1.7 GW.
  • Residential Sector's Share According to a report by CEEW, only 20% of rooftop solar capacity installations are in the residential sector, with the majority in commercial and industrial sectors.
  • Potential Rooftop Solar Capacity India's 25 crore households could deploy 637 GW of solar energy on rooftops, with just one-third of this capable of meeting the entire residential electricity demand in the country.

Other Climate Change Initiatives

  • Support to Electric Vehicles (EVs) India supports the global EV30@30 campaign, aiming for at least 30% of new vehicle sales to be electric by 2030. India advocated for five elements of climate change "Panchamrit" at UNFCCC COP26.
  • Role of Industries in Low-Carbon Transition Public and private sectors in India are increasingly contributing to meeting the climate challenge, driven by growing customer and investor awareness, as well as regulatory requirements.
  • National Green Hydrogen Mission The mission aims to incentivize commercial production of green hydrogen, making India a net exporter of the fuel. It will facilitate demand creation, production, utilization, and export of Green Hydrogen.
  • Global Biofuel Alliance Launched under India's G20 presidency, the alliance aims to expedite global uptake of biofuels. It brings together major biofuel producers and consumers to strengthen global biofuel trade for a greener future.
  • PM-KUSUM The PM-KUSUM initiative, launched in 2019 by the Ministry of New and Renewable Energy, aims to install off-grid solar pumps in rural areas and reduce dependence on the grid. It enables farmers to set up solar power generation capacity on their lands and sell surplus solar power to the grid.

CITATIONS:

https://sansadtv.nic.in/episode/perspective-indias-green-energy-transition-31-january-2024

https://indianexpress.com/article/business/budget/union-budget-2024-need-to-catalyse-indias-green-energy-transition-9113499/

https://www.google.com/url?sa=i&url=https%3A%2F%2Fauto.economictimes.indiatimes.com%2Fnews%2Findustry%2Findia-wants-a-clean-energy-transition-deal%2F98208611&psig=AOvVaw2wx0B7xugcEtyDkYKqbveL&ust=1707841744215000&source=images&cd=vfe&opi=89978449&ved=2ahUKEwjI8Z61nKaEAxVSSWwGHeK7BpgQr4kDegQIARBf

https://vikaspedia.in/energy/best-practices/green-energy-transition-in-india#:~:text=India%20declared%20in%202019%20that,raw%20materials%20for%20renewable%20energy.

https://www.iea.org/commentaries/india-s-clean-energy-transition-is-rapidly-underway-benefiting-the-entire-world