India's Energy Transition Challenge and Renewable Investment Surge
Key Ideas
  • India's energy needs are expected to grow significantly by 2047, driving investments of Rs 30.5 trillion in the renewable energy sector between 2024-2030.
  • The country is emphasizing the shift towards renewables, with the electricity sector already showing considerable changes, moving from 32% non-fossil power capacity in 2014 to 45.4% in 2024.
  • The government is issuing sovereign green bonds to raise funds for emissions reduction projects, but challenges such as intermittency in renewable energy production and grid stability persist.
  • Despite the push for renewables, coal is projected to remain a key component of India's energy system for the next two decades, with a need to invest in technologies for critical minerals and battery storage.
India's economic survey highlights the nation's energy transition challenges and the surge in renewable energy investments. The government foresees a significant growth in energy demands by 2047, necessitating investments of Rs 30.5 trillion in the renewable energy sector between 2024 and 2030. While the primary energy mix remains fossil-fuel dominant, the share of non-fossil power capacity in the electricity sector has increased to 45.4% in 2024 from 32% in 2014 due to the integration of renewables. The government has issued sovereign green bonds to raise funds for emissions reduction projects, aiming to enhance grid stability amidst intermittent renewable energy supply. Despite promoting renewables, coal is expected to sustain as a fundamental energy source for the next two decades, accompanied by a focus on technologies for critical minerals and battery storage. The survey emphasizes supplementing renewable energy with non-fossil fuel sources like nuclear, biofuels, and hydrogen to avoid overdependency on specific resources. While acknowledging challenges like intermittency and grid stability, the government's positive stance on renewable energy investments and the broader shift towards cleaner energy sources sets a promising trajectory for India's energy future.
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