{"id":49592,"date":"2025-07-29T19:05:59","date_gmt":"2025-07-29T13:35:59","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=49592"},"modified":"2025-07-29T21:10:57","modified_gmt":"2025-07-29T15:40:57","slug":"india-energy-transition","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/29-07-2025\/india-energy-transition","title":{"rendered":"Decoding India\u2019s Energy Transition"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Energy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Recently, the <strong>World Economic Forum (WEF)<\/strong> revealed that <strong>India secured 71st position in 2025<\/strong>, down from 63rd in 2024 and 67th in 2023 because of <strong>several \u2018structural challenges\u2019.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Global Standing in Energy Transition<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>World Economic Forum (WEF)<\/strong>, in collaboration with <strong>Accenture<\/strong>, recently released its 2025 Fostering Effective Energy Transition report.&nbsp;<\/li>\n\n\n\n<li>It evaluates 118 countries based on the <strong>Energy Transition Index (ETI)<\/strong>, which assesses their performance and readiness for clean energy transformation.\n<ul class=\"wp-block-list\">\n<li><strong>India ranked 71st<\/strong> with an ETI score of <strong>53.3<\/strong>, down from <strong>63rd in 2024<\/strong>.<\/li>\n\n\n\n<li><strong>Sweden retained the top spot<\/strong> with an ETI score of <strong>77.5<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Renewable Energy Expansion: <\/strong>Increased from <strong>48 GW in 2009<\/strong> to <strong>204 GW in 2024<\/strong>, achieving a <strong>10% CAGR<\/strong>.\n<ul class=\"wp-block-list\">\n<li>Projected <strong>solar PV capacity<\/strong> for 2025\u20132029 is <strong>188\u2013278 GW<\/strong>, making India a global leader (IRENA, 2025).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>India&#8217;s Energy Transition: Current Status<\/strong><br>&#8211; <strong>Non-Fossil Fuel Milestone: <\/strong>As of June 2025, India has achieved over 50% of its installed electricity capacity from non-fossil fuel sources, <strong>five years ahead of its 2030 target for the Paris Agreement.<\/strong><br>1. The total installed power capacity is around 476 GW, with approximately 235.7 GW coming from non-fossil sources (226.9 GW renewable, 8.8 GW nuclear), and about 240 GW from thermal power.<br>&#8211; <strong>Renewable Growth: <\/strong>Solar and wind have been the fastest-growing segments. Solar capacity has reached over 110.9 GW, and wind is at 51.3 GW as of mid-2025.<br>&#8211; <strong>Electrification:<\/strong> India achieved 100% village electrification and has continued expanding grid connectivity and household access.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Persistent Structural Challenges<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Fossil Fuel Dependence: <\/strong>India is the <strong>third-largest renewable energy producer<\/strong> (1.77 EJ) after China (13.9 EJ) and the U.S. (6.65 EJ).\n<ul class=\"wp-block-list\">\n<li><strong>Fossil fuels remain dominant in the national energy mix.<\/strong><\/li>\n\n\n\n<li><strong>Coal consumption<\/strong> rose to <strong>21.98 Exajoules (EJ) in 2023<\/strong>, up from <strong>6.53 EJ in 1998<\/strong>, marking a <strong>5% CAGR<\/strong>.<\/li>\n\n\n\n<li><strong>Petroleum use<\/strong> has increased, especially in <strong>agriculture<\/strong>, between 2022 and 2023 (NITI Aayog, 2024).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Unequal Access to Clean Energy: <\/strong>Disparities in <strong>clean cooking fuel access<\/strong> continue to plague rural and low-income households:\n<ul class=\"wp-block-list\">\n<li>The <strong>Pradhan Mantri Ujjwala Yojana (PMUY)<\/strong> has expanded LPG access to Below Poverty Line (BPL) households.<\/li>\n\n\n\n<li>However, <strong>sustained usage<\/strong> is limited due to <strong>cost, supply issues, and inconvenience<\/strong>, leading to <strong>fuel stacking<\/strong> (use of multiple fuels).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Other Challenges<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>High Fossil Fuel Dependence:<\/strong> Despite progress, fossil fuels still supply the bulk of India\u2019s primary energy and are responsible for 75% of total greenhouse gas (GHG) emissions.<\/li>\n\n\n\n<li><strong>Rising Energy Demand:<\/strong> India\u2019s primary energy supply has grown by 54.5% in the last decade due to its booming population and economic growth. Meeting future demand sustainably remains a challenge.<\/li>\n\n\n\n<li><strong>Emissions Intensity<\/strong>: India has reduced emissions intensity of its GDP by 33% from 2005-2019, but steep further reductions are still required for net-zero aims.<\/li>\n\n\n\n<li><strong>Financing &amp; Investment:<\/strong> Achieving massive renewable targets and grid modernization will need sustained and increased domestic and international investment.<\/li>\n\n\n\n<li><strong>Grid Integration &amp; Flexibility:<\/strong> Integrating high shares of variable renewables (solar, wind) requires developing grid storage, transmission upgrades, and market reforms to ensure reliability.<\/li>\n\n\n\n<li><strong>Technological Gaps:<\/strong> Wider adoption of emerging technologies like green hydrogen, battery storage, and advanced grid management is needed for deep decarbonization.<\/li>\n\n\n\n<li><strong>Data &amp; Governance:<\/strong> Accurate, timely energy data and robust policy frameworks are required for evidence-based decision making and proper monitoring of transition progress.<\/li>\n\n\n\n<li><strong>Social Considerations:<\/strong> The transition must remain inclusive &#8211; ensuring energy access, affordability, and job creation while navigating potential transitions in coal-dependent regions.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Related Flagship Missions &amp; National Strategies<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>National Solar Mission:<\/strong> Aims for 100 GW of solar capacity, promoting grid-connected and off-grid solar projects.<\/li>\n\n\n\n<li><strong>National Green Hydrogen Mission:<\/strong> Targets 5 million metric tonnes of green hydrogen annually by 2030, with \u20b919,744 crore allocated for incentives and R&amp;D<\/li>\n\n\n\n<li><strong>PM Surya Ghar: Muft Bijli Yojana: <\/strong>Supports rooftop solar installations for households, with over 17 lakh systems already deployed.<\/li>\n\n\n\n<li><strong>Production Linked Incentive (PLI) Scheme:<\/strong> \u20b924,000 crore allocated to boost domestic manufacturing of solar PV modules and wind turbines.<\/li>\n\n\n\n<li><strong>Viability Gap Funding (VGF) for Battery Energy Storage Systems (BESS):<\/strong> \u20b95,400 crore scheme to build 30 GWh of storage capacity.<\/li>\n\n\n\n<li><strong>Elevated Investment Caps:<\/strong> NTPC and NLCIL received approval to invest \u20b920,000 crore and \u20b97,000 crore respectively in renewable projects.<\/li>\n\n\n\n<li><strong>National Transmission Plan for 500 GW:<\/strong> Ensures seamless evacuation and integration of renewable power into the grid.<\/li>\n\n\n\n<li><strong>Interstate Transmission System (ISTS) Waiver:<\/strong> Reduces project costs by waiving transmission charges until 2028.<\/li>\n\n\n\n<li><strong>Renewable Purchase Obligations (RPOs):<\/strong> Mandate DISCOMs to procure a fixed percentage of power from renewable sources.<\/li>\n\n\n\n<li><strong>Green Open Access Rules:<\/strong> Facilitate easier access for consumers to buy renewable energy directly from producers.<\/li>\n\n\n\n<li><strong>Strengthened Power Purchase Agreements (PPAs):<\/strong> Provide long-term certainty for investors.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Forward: Opportunities to Catalyze Energy Transition<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Infrastructure and Technology: <\/strong>India needs to focus on:\n<ul class=\"wp-block-list\">\n<li><strong>Grid stability<\/strong>, <strong>energy storage<\/strong>, and <strong>interconnectors<\/strong>.<\/li>\n\n\n\n<li><strong>Off-grid solutions<\/strong> for electrifying remote regions.<\/li>\n\n\n\n<li>Strengthening schemes like <strong>PM Surya Ghar Muft Bijli Yojana<\/strong> through better monitoring and accountability.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Green Finance and Industrial Alignment: <\/strong>India needs robust financial support to de-risk and scale clean energy projects:\n<ul class=\"wp-block-list\">\n<li>The <strong>National Green Hydrogen Mission (2023)<\/strong> offers <strong>state-specific incentives<\/strong> tied to industrial strengths.<\/li>\n\n\n\n<li>The <strong>National Investment and Infrastructure Fund (NIIF)<\/strong> can help co-finance clean energy projects by <strong>lowering systemic investment risks<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Policy Stability and Long-Term Capital: Stable and adaptive energy policies<\/strong> to attract <strong>long-term risk capital<\/strong>.\n<ul class=\"wp-block-list\">\n<li>Regulatory clarity to bolster investor confidence in India\u2019s energy systems.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India continues to demonstrate key strengths, including improvements in <strong>energy efficiency<\/strong>, <strong>clean energy investments<\/strong>, and <strong>progressive energy policies, <\/strong>despite a downward shift in rankings.<\/li>\n\n\n\n<li>A <strong>multi-tiered strategy <\/strong>&#8211; combining <strong>targeted policies<\/strong>, <strong>financing mechanisms<\/strong>, and <strong>decentralized infrastructure <\/strong>&#8211; will be crucial to align economic growth with sustainable energy goals.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q]<\/strong> Evaluate the key challenges India faces in its energy transition and discuss how government initiatives and technological innovation can address these barriers to create a sustainable energy future.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.thehindubusinessline.com\/opinion\/decoding-indias-energy-transition\/article69862152.ece\" rel=\"nofollow noopener\" target=\"_blank\">Source: BL<\/a><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2025\/07\/UPSC-Editorial-Analysis-29-July-2025.PDF.pdf\">Download PDF<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Recently, the World Economic Forum (WEF) revealed that India secured 71st position in 2025, down from 63rd in 2024 and 67th in 2023 because of several \u2018structural challenges\u2019.<\/p>\n","protected":false},"author":15,"featured_media":49596,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-49592","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/07\/upsc-editorial-29-july-2025.webp","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/49592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=49592"}],"version-history":[{"count":4,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/49592\/revisions"}],"predecessor-version":[{"id":49648,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/49592\/revisions\/49648"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/49596"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=49592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=49592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=49592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}