Daily Hot Topic
Topic : India’s Green Energy Transition

GS-3 Mains  : Economy
Revision Notes


In the News:

  • World Bank approves $1.5 billion for India’s second Low-Carbon Energy Programmatic Development Policy Operation (June 2024).
  • Funds to support green hydrogen production and mobilize finance for low-carbon investments.


  • India faces a challenge: balancing economic growth with environmental sustainability.
  • Transition from fossil fuels to renewable energy is crucial due to:
    • Global environmental concerns
    • Energy security needs
    • Economic imperatives

India’s Green Energy Push:

  • Focus on various sectors: electricity, industry, transport, agriculture, cooking, etc.
  • Current Status (as of May 2024):
    • 4th globally in Renewable Energy Installed Capacity (including large hydro)
    • 4th in Wind Power Capacity
    • 5th in Solar Power Capacity (Source: REN21 Renewables 2024 Global Status Report)
    • Highest year-on-year growth in renewable energy additions (9.83%) in 2022.
    • Solar energy capacity increased 30 times in the last 9 years to 84.27 GW.
    • Ranked 63rd on the World Economic Forum’s Energy Transition Index (June 2024).

Advantages of Green Energy Transition:

  • Environmental: Improves air quality, mitigates climate change.
  • Energy Security: Reduces reliance on imported fossil fuels, stabilizes energy prices.
  • Economic Opportunities: Creates jobs, fosters innovation, attracts investments.
    • India is a global hub for solar energy manufacturing, reducing costs and increasing accessibility.
  • Inspiration for the World: India’s green workforce and domestic battery supply chain can significantly contribute to fighting climate change.

Challenges of Green Energy Transition:

  • Financial Viability: Renewable energy technologies (solar, wind) need to be more cost-competitive with conventional sources.
  • Infrastructure Development: Building transmission lines, substations, and storage facilities is crucial but faces logistical and bureaucratic hurdles.
  • Policy and Regulatory Framework: Inconsistencies, delays, and evolving frameworks create challenges for investors and developers.
  • Lack of Trained Manpower: Shortage of professionals and technicians with specialized skills in renewable energy technologies.

Government Initiatives:

  • National Green Hydrogen Mission to develop a domestic market.
  • Permitting 100% Foreign Direct Investment (FDI) for renewable energy projects.
  • Schemes like PM-KUSUM and Solar Rooftop to promote renewable energy use.
  • Panchamrit targets: 500 GW of non-fossil fuel based energy by 2030.
  • Measures like waiver of transmission charges, renewable purchase obligations, and Ultra Mega Renewable Energy Parks.
  • One Sun, One World, One Grid (OSOWOG) for a global solar power grid (proposed by PM Modi in 2018).

The Way Forward:

  • India’s abundant sunshine, coastline, and vacant lands offer potential for wind, solar, and hydro power generation.
  • Continued focus on targets, supportive policies, technological advancements, and international collaboration are key to success.
  • By addressing challenges effectively, India can become a global leader in renewable energy innovation and achieve sustainable energy security.

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