But there are also problems and to reach its 2030 goal, India will need to deploy renewable energy 2.5 times quicker
According to a recent study by the Institute for Energy Economics and Financial Analysis (IEEFA), India’s renewable energy industry is shining and thriving. The news came at a time when the planet is battered by international conflicts, global inflation, high energy costs, and rising interest rates.
This doesn’t come as any surprise since Brent crude may reach $100 per barrel or perhaps go higher because of the escalating global energy crisis and the recent tumultuous decision by Saudi Arabia and Russia to reduce their production output by 2 million barrels per day.
Brent Crude is currently trading at about $90.70, the bar plunging down by achieving its highest at $97.4 on October 7. Dispiritedly, Monday's rupee/dollar exchange rate was Rs 82.79 as a result of a strong dollar abroad and falling crude oil prices. For obvious reasons, India may also have to worry about rising crude oil prices in the near term, but in the long run, it is building its capability in the renewable energy industry to successfully address the situation. India’s renewable energy stride and affability to become an energy-independent economy is not a nine-day wonder. India has come a long way since its Independence from a minuscule 1.3 GW total installed capacity in 1947 to becoming a behemoth (118 GW) now in the renewable energy arena. Over the past 10 years, India’s installed renewable energy capacity has grown by 700 per cent, reaching more than 160 GW.
As of July 2022, India has met its NDC objective, its installed renewable energy capacity (including hydro) stood at 161.28 GW, representing 40 per cent of the overall installed power capacity. By September 2022, the installed solar energy capacity had expanded by 50 times in the previous ten years, reaching 61 GW. The current renewable energy capacity of India is approximately 161 GW, standing at fourth place in the world next to China, the U.S, and Brazil, particularly over the past ten years, India has seen a significant increase in the installed capacity of renewable energy sources.
In the recently held 26th UNFCCC at Glasgow in Scotland, also termed Conference of the Parties (COP26), India committed to fulfilling its promise to limit global temperature rise to 1.5 degrees through five agendas called ‘Panchamrit’ or ‘Five Ambrosias’. The commitments entailed increasing its non-fossil energy capacity to 500 gigawatts by 2030, meeting 50 per cent of the energy requirement through renewable means by 2030, reducing projected carbon emissions by one billion tons by 2030, reducing the emissions intensity of its GDP by 45 per cent by 2030, and achieving a net-zero emissions target by 2070. The latest missions though came in succession, following the commitments made in the Paris Agreement.
The Indian government stated last year that it has been tenaciously pursuing the Paris Agreement’s objectives. Supporting India’s track record of climate commitment, India’s emissions have decreased by 28 per cent from 2005 levels, against the aim of a 35 per cent reduction by 2030.
Linking the dots, the Lok Sabha passed the much-expected Energy Conservation (Amendment) Bill on August 8, without much opposition. The new measure would not only make it necessary to employ non-fossil fuels like ethanol, green hydrogen, green ammonia, and biomass as energy sources but will also significantly aid India in meeting its 2030 sustainable development goal (SDG 7).
But everything is not sunshine and rainbows for the current government. The officials have acknowledged that they shall be falling short of their 2022 goal of 175 GW of RES, citing various reasons. The nation’s ambition to build 175 gigawatts of capacity by 2022 is seeing a robust slowdown, just four Indian states have been able to surpass their renewable energy objectives till now (Gujarat was the fourth state after Rajasthan, Karnataka, and Telangana to achieve its goal).
Solar installations have decreased despite March’s record surge. This fall is a result of the government’s introduction of a customs levy on the import of solar modules and cells. The majority of India’s solar energy capacity is imported which has added more to the woes. Considering that the Indian Government has increased its renewable energy target to 450 GW by 2030, a quicker adoption rate would be required to achieve the objective. Four states—Maharashtra, Uttar Pradesh, Andhra Pradesh, and Madhya Pradesh—account for the majority of the 175 GW target’s shortfall. To reach its 2030 goal, India will need to deploy renewable energy 2.5 times quicker than the current rate. India must add an average of 3.7 GW on a monthly basis to achieve the primary goal.
The year 2022 has seen an average monthly rate of 1.4 GW, with a record-breaking high of 3.5 GW in March. Until the monthly required rate is achieved the target of an energy-independent India shall remain a distant dream.
(The author is an Academic Associate at the Indian School of Business Hyderabad)