India is on a mission to significantly boost its renewable energy (RE) capacity, aiming for 500 GW by 2030 and potentially 1 TW by 2035. This ambitious goal is driven by the need to meet rising energy demands and combat climate change by reducing reliance on fossil fuels. As of May 2024, India has achieved an installed RE capacity of 191 GW, with 85 GW from solar power, thanks to initiatives like the National Solar Mission. However, the renewable energy transition journey is fraught with challenges such as land acquisition, infrastructure inadequacies, inconsistent policies, grid integration issues, and the necessity for massive investments.
Origin of the Article
This editorial is based on “A blueprint for RE ambitions,” published in The Financial Express on 11/07/2024. The article discusses India’s urgent need for a smooth transition to renewable energy, emphasizing the importance of addressing various challenges to meet ambitious clean energy targets.
Relevancy for UPSC Students
Understanding India’s renewable energy transition is crucial for UPSC aspirants. It aligns with the UPSC syllabus regarding government policies, environmental issues, and economic development. Knowledge of this topic aids in comprehending the complexities of energy policies and their socio-economic impacts, essential for both Prelims and Mains examinations.
Why in News
India’s renewable energy transition has gained significant attention due to its ambitious targets of achieving 500 GW by 2030. This topic is crucial for UPSC aspirants as it encompasses various facets of GS Paper 2 and 3, including governance, policy interventions, and sustainable development. The challenges in land acquisition, infrastructure, and financing reflect the complex interplay of economic, social, and environmental factors, mirroring previously asked questions on energy security and climate commitments in the UPSC Civil Services Examination.
India’s Renewable Energy Transition
India’s renewable energy transition is a multifaceted endeavor driven by several critical factors. The nation aims to achieve 500 GW of renewable energy capacity by 2030, marking a significant shift from traditional fossil fuels to sustainable energy sources.
Factors Driving India’s Renewable Energy Transition
Energy Security and Independence
India’s heavy reliance on oil imports, accounting for over 80% of its needs, has long posed economic and security risks. The significant growth in solar capacity, which reached 85 GW in 2023, is pivotal in reducing dependence on fossil fuels. This shift towards renewable energy enhances India’s energy security and independence.
Economic Competitiveness
Renewable energy, particularly solar, has become increasingly cost-competitive with traditional energy sources. A notable example is the Gujarat Urja Vikas Nigam Limited (GUVNL) auction, which saw solar tariffs drop to ₹1.99 per kWh. Such economic advantages are driving substantial investments from both public and private sectors into renewable energy.
Climate Change Commitments
At COP26, India pledged to reduce projected carbon emissions by 1 billion tonnes by 2030 and achieve net-zero emissions by 2070. These commitments necessitate a robust transition to renewable energy, with a target of 500 GW of non-fossil fuel capacity by 2030, aligning with global climate goals.
Job Creation Potential
The renewable energy sector offers vast employment opportunities. A report by CEEW-NRDC suggests that India could create around 3.4 million jobs by 2030 by expanding solar and wind capacities. Government initiatives like the Production Linked Incentive (PLI) scheme for solar modules aim to boost domestic manufacturing and job creation.
International Cooperation and Pressure
India’s leadership in international alliances such as the International Solar Alliance and partnerships like the Global Biofuel Alliance have accelerated knowledge sharing and technology transfer. These collaborations foster innovation and bring international pressure to meet renewable energy goals.
Water Scarcity
Renewable energy, especially solar power, provides a sustainable alternative in water-stressed regions. For instance, Maharashtra’s focus on solar energy is partly driven by recurring droughts that impact thermal power generation. This shift helps conserve vital water resources.
Investor Pressure and ESG Considerations
Global investors are increasingly prioritizing Environmental, Social, and Governance (ESG) factors. This trend is pushing Indian companies and the government to adopt renewable energy more rapidly. For example, India issued $6.11 billion in green bonds in 2021, reflecting strong investor demand for sustainable investments.
Major Roadblocks to India’s Renewable Energy Transition
Land Acquisition Hurdles
Acquiring land for renewable energy projects is a significant challenge. For example, a 1 GW solar plant requires about 2,000 hectares. In Rajasthan, protests have erupted over large solar parks encroaching on grazing lands, highlighting the conflict between development and community rights.
Stranded Asset Risk and Threat to Coal Sector Workers
The transition to renewable energy poses risks to coal-based power plants and their workforce. With eight stranded coal plants as of 2023, regions like Jharkhand and Chhattisgarh face economic and social challenges. Retraining coal workers for renewable energy jobs is essential to mitigating these impacts.
Grid Integration and Stability Issues
As renewable energy penetration increases, grid stability becomes a concern. Tamil Nadu has faced challenges with wind power integration, leading to curtailments by Tangedco. Implementing forecasting and scheduling regulations can help, but grid stability remains a significant issue.
Intermittency and Storage Challenges
The variable nature of renewable energy sources necessitates large-scale storage solutions. By 2030, India is projected to need 38 GW of battery storage and 9 GW of thermal balancing power. While initiatives like SECI’s 1000 MWh battery storage tender are steps forward, scaling up remains a challenge.
E-waste and End-of-Life Management
The deployment of solar panels and batteries generates significant e-waste. India is expected to become the fourth-largest producer of solar panel waste by 2050. However, the country lacks comprehensive recycling policies, posing environmental risks. Draft rules by MNRE are a step in the right direction.
Geopolitical Resource Dependencies
India’s renewable energy transition relies on critical minerals like lithium, cobalt, and rare earth elements, primarily controlled by a few countries. This dependency creates vulnerabilities in the supply chain, impacting national security and economic sovereignty.
Biofuel Land Use Dilemma
India’s biofuel targets, such as 20% ethanol blending by 2025, compete with food production. The push for ethanol has increased sugarcane cultivation, a water-intensive crop, complicating the food-water-energy nexus, especially in water-stressed regions like Maharashtra.
Climate Change Impacts on RE Infrastructure
Climate change itself poses risks to renewable energy infrastructure. Increased cyclone frequency threatens offshore wind projects, and changing precipitation patterns impact hydropower potential, as seen in the 2021 Uttarakhand floods.
Urban Planning and RE Integration
Rapid urbanization presents challenges for renewable energy integration. For instance, Mumbai struggles with limited open spaces for large-scale projects and lacks uniform building codes for rooftop solar installations, complicating urban renewable energy adoption.
Major Government Initiatives Related to Renewable Energy Transition
Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA)
SAUBHAGYA aims at universal household electrification, ensuring every household has access to electricity. This initiative is critical for inclusive growth and development, bridging the urban-rural divide in energy access.
Green Energy Corridor (GEC)
The Green Energy Corridor project focuses on building transmission infrastructure to facilitate renewable energy integration into the grid. This initiative is vital for ensuring stable and efficient energy transmission across the country.
National Smart Grid Mission (NSGM) and Smart Meter National Programme
These initiatives promote the development of smart grids and the installation of smart meters. They aim to enhance grid reliability, reduce losses, and enable better energy management, crucial for integrating renewable energy sources.
Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME)
The FAME scheme encourages the adoption of electric vehicles (EVs) by providing incentives for manufacturing and purchasing EVs. This initiative supports the broader goal of reducing carbon emissions from the transportation sector.
International Solar Alliance (ISA)
India’s leadership in the ISA demonstrates its commitment to international cooperation in promoting solar energy. The alliance facilitates knowledge sharing, technology transfer, and financing, accelerating global solar adoption.
Surya Ghar Muft Bijli Yojana
This scheme aims to provide free electricity through solar energy to households, particularly in rural areas. It addresses energy access issues while promoting the use of renewable energy, contributing to sustainable development.
Measures India Can Adopt to Ensure a Smoother Transition to Renewable Energy
Floating Solar Revolution
India can harness its vast water bodies by developing floating solar projects on reservoirs and lakes. This approach conserves land, reduces water evaporation, and can be integrated with hydroelectric infrastructure to maximize energy output.
Land Leasing Revolution
Implementing a “Solar Farming” model, where land is leased for renewable energy projects, can address land acquisition challenges. Agrivoltaic systems, which combine agriculture and solar energy, can provide dual benefits of energy production and agricultural output.
Renewable Energy Special Economic Zones (RE-SEZs)
Establishing RE-SEZs with streamlined regulations and incentives can accelerate renewable energy manufacturing and research. These zones can attract global companies and foster domestic innovation, bolstering India’s renewable energy sector.
Workforce Transition From Coal to Clean Energy
A “Green Collar” initiative can retrain coal sector workers for renewable energy jobs. Establishing renewable energy hubs in coal-dependent regions can provide alternative employment and facilitate a gradual transition.
Blockchain-Powered Decentralized Energy Trading
Implementing peer-to-peer energy trading platforms using blockchain technology can revolutionize India’s energy market. This system would enable prosumers to trade excess energy, enhancing grid flexibility and promoting small-scale renewable energy adoption.
Vertical Axis Wind Turbines (VAWTs) for Urban Environments
Promoting VAWTs can unlock urban wind energy potential. These turbines are suitable for turbulent urban winds and can be integrated into existing infrastructure, providing a complementary energy source to rooftop solar.
Green Hydrogen Highways
Creating a network of green hydrogen production centers along transportation corridors can decarbonize the transport sector. These centers would use excess renewable energy to produce hydrogen, fueling long-haul trucks and buses.
Solar Thermal Oases
Developing CSP plants integrated with greenhouse agriculture in arid regions can create “Solar Thermal Oases.” These facilities can provide energy, water for crops, and year-round cultivation, addressing energy, water, and food security simultaneously.
Waste-to-Energy Circular Parks
Integrated waste management and energy production facilities, or “Waste-to-Energy Circular Parks,” can revolutionize waste management. These parks can turn waste into energy and valuable byproducts, creating a sustainable and circular economy.
PESTEL Analysis
| Political: India’s strong government initiatives, such as the International Solar Alliance and various national missions, show political commitment to renewable energy. However, land acquisition disputes and the need for robust policies to handle e-waste and grid integration highlight areas requiring further political attention. Economic: The economic viability of solar power, demonstrated by record low tariffs, makes renewable energy an attractive investment. Economic incentives like Renewable Energy Special Economic Zones (RE-SEZs) could further boost sector growth. Job creation potential is significant, offering economic benefits from a growing green job market. Social: Social acceptance varies, with initiatives like agrivoltaic systems offering mutual benefits to energy and agriculture. Yet, land use conflicts and the need for workforce transitions from fossil-fuel industries pose social challenges that need careful management. Technological: Technological advancements in solar and wind energy are pivotal. Challenges such as energy storage, grid integration, and the development of decentralized energy trading using blockchain technology require ongoing technological innovation. Environmental: Renewable energy significantly reduces carbon emissions and dependence on water-intensive power generation, aligning with environmental goals. However, climate change poses risks to infrastructure, and the production of critical minerals introduces environmental concerns abroad. Legal: Legal frameworks are essential for guiding the transition, with policies needed to support land leasing, e-waste management, and international trade in critical minerals. Legal structures that facilitate renewable energy adoption while balancing ecological and social impacts are crucial. |
Conclusion
India’s renewable energy transition presents an unprecedented opportunity to redefine its energy landscape and meet its climate goals. While challenges like land acquisition, grid integration, and financing are significant, they are not insurmountable. By leveraging innovative strategies and robust government initiatives, India can pave the way for a sustainable future. Civil service aspirants must recognize this transformative phase as a pivotal aspect of national development, necessitating informed policymaking and strategic governance.
| UPSC Civil Services Examination, Previous Year Questions (PYQs) Mains Q. To what factors can the recent dramatic fall in equipment costs and tariff of solar energy be attributed? What implications does the trend have for thermal power producers and the related industry? (GS Paper III, 2015). Q. Identify and discuss the major roadblocks to India’s renewable energy transition. Examine the issues related to land acquisition, power evacuation infrastructure, policy consistency, grid integration, and financial investments. Propose viable solutions to overcome these challenges. |
