Introduction
India stands at a critical juncture in its energy transition journey, with a steadfast commitment towards reducing carbon emissions and embracing renewable energy sources. With ambitious targets set at COP28 and a slew of policy measures aimed at fostering green growth, India is spearheading a renewable energy revolution that not only addresses its energy needs but also contributes significantly to global sustainability goals.
Expansion of Renewable Energy Capacity
According to the REN21 Renewables 2022 Global Status Report, India ranks as the third-largest consumer of energy globally, but it is also emerging as a key player in renewable energy deployment. Over the past decade, India has witnessed a remarkable surge in renewable energy capacity, with a staggering 396% increase in installed non-fossil fuel capacity, reaching over 179.57 GW as of November 2023. This growth trajectory is further underscored by the fact that solar energy capacity alone has witnessed a 30-fold increase in the last nine years, standing at 72.31 GW.
Policy Framework Driving Renewable Energy
India's commitment to renewable energy is buttressed by a robust policy framework aimed at incentivizing investments and fostering innovation in the sector. One significant policy measure is the allowance of up to 100% foreign direct investment (FDI) through the automatic route for projects related to renewable energy generation and distribution, in compliance with The Electricity Act 2003. This policy stance not only attracts foreign capital but also promotes technology transfer and knowledge exchange.
COP26 Commitments and National Targets
At COP26, India made a landmark commitment to achieve 500 GW of non-fossil fuel-based energy by 2030, marking the world's most extensive expansion plan in renewable energy. This commitment is aligned with India's broader vision of attaining 50% of its cumulative electric power from renewable sources by 2030 and achieving a net-zero carbon emissions status by 2070. These targets underscore India's resolve to combat climate change and transition towards a sustainable energy future.
National Green Hydrogen Mission
A key pillar of India's renewable energy strategy is the National Green Hydrogen Mission, aimed at producing five million tonnes of green hydrogen by 2030. Backed by a renewable energy capacity of 125 GW, this mission not only reduces carbon intensity but also diminishes reliance on fossil fuel imports, positioning India as a leader in green hydrogen technology and market. The allocated budget of ₹19,700 crore reflects the government's commitment to driving innovation and scaling up green hydrogen production.
Solar Power and Battery Energy Storage
India's solar power sector has received a significant boost with the implementation of the Production-Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules. With an investment of INR 4,500 crore in Tranche 1 and INR 19,500 crore in Tranche 2, this scheme aims to bolster domestic manufacturing capabilities and exports in solar PV modules. Additionally, the budgetary allocation for battery energy storage systems and pumped storage projects underscores the government's focus on promoting sustainable development and grid stability.
Infrastructure Development and Transmission
To facilitate the integration of renewable energy into the grid, India is investing in essential infrastructure projects such as interstate transmission systems. The construction of transmission lines from Ladakh, aimed at evacuating 13 GW of renewable energy, exemplifies India's commitment to overcoming geographical constraints and harnessing renewable energy potential in remote regions. These initiatives not only enhance grid reliability but also accelerate the transition towards a low-carbon economy.
Incentivizing Green Practices and Innovation
The Union Budget underscores the government's commitment to promoting green growth through various fiscal measures and incentives. The introduction of a Green Credit Programme aims to incentivize environmentally conscious actions by companies, individuals, and local bodies, thereby fostering a shift towards sustainable practices. Additionally, investments in research and development, particularly in high-efficiency solar PV modules, demonstrate India's resolve to enhance technological capabilities and drive innovation in the renewable energy sector.
Conclusion
India's renewable energy journey is characterized by ambitious targets, innovative policies, and concerted efforts towards green growth. With a strong emphasis on solar power, green hydrogen, and energy storage, India is not only diversifying its energy mix but also catalyzing economic growth and job creation in the green sector. As the nation marches towards its renewable energy goals under the leadership of PM Modi, collaborations between government, industry, and civil society will play a pivotal role in realizing India's vision of a sustainable and resilient future.
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