India is one of the fastest-advancing nations at a junction point in its energy journey, because of an increasingly soaring population and economy, it finds alarming increases in demands related to energy. As one of the world's biggest consumers of energy, India is constantly forced to meet this huge energy demand while maintaining an adequate level of environmental sustainability. An energy landscape in India is shifting over the need to abate carbon emissions, enhancing security in energy, and thereby promoting economic growth.

Current Energy Scenario in India

India's energy mix varies between coal, natural gas, oil, hydroelectric power, nuclear, and renewable sources. Over time, coal has formed a large percentage of nearly 70% of the power generation. However, relying on coal poses multiple disadvantages in terms of pollution caused by environmental degradation unhealthy health conditions, and the rapid erosion of natural resources.

India has significantly increased its renewable energy capacity in the past few years. The country has also set ambitious targets of reaching 450 GW of renewable energy capacity by 2030. As of 2021, India had already installed over 100 GW of renewable energy capacity, mainly from solar and wind power which includes solar panels, windmills, etc.

--------------Blog Contact Form-------------

Key Drivers of Energy Reform

• Environmental concerns: The negative impacts of climate change and air pollution have created an urgent need for the switch to cleaner sources of energy. India is a party to the Paris Agreement, which has committed to reducing its carbon intensity to 33-35% by 2030 against the 2005 levels.
• Energy security. Reducing dependence on imported fossil fuels is very important for enhancing energy security. India meets about 80 percent of crude oil and a sizeable portion of natural gas with imports, leaving the economy susceptible to global price volatility and politics.
• Access to reliable and affordable energy: It is crucial for economic development. When energy reforms come into place, they are known to stimulate investment, create jobs, and enhance the quality of life for millions of people.
• Technological innovations: Underway is the shift towards sustainability in the energy landscape driven by innovations in renewable energy technologies, energy storage, and smart grid systems.

Also Read: How are Indian Enterprises Adapting to the Energy Transition?

Revolution of Renewable Energy 

• Solar power: As many as 300 sunny days occur every year, and initiatives such as the Jawaharlal Nehru National Solar Mission and the International Solar Alliance focus on expanding solar capacity and research.
• Wind power: India's wind energy potential is 302 GW. The National Wind-Solar Hybrid Policy promotes hybrid projects to make the best of land use and grid integration.
• Bio-energy: By using agricultural residues and wastes for bio-energy, rural development, and waste management are boosted.
• Hydropower: Small hydropower is promoted as a sustainable alternative to large hydropower supplying some remote areas with energy.

Also Read: Fast-Tracking Energy Transition with Atmanirbhar Bharat

Energy Efficiency and Conservation

This will play a very important role in the energy reform initiated by India with the Bureau of Energy Efficiency (BEE) as the leader. Important measures are:

• Industrial sector: The PAT scheme has set a target for energy consumption in some industries, which are high consumers of energy, and permits trading of surplus savings among themselves.
• Transportation sector: The FAME scheme has encouraged electric vehicles. It invests in charging infrastructure and also offers incentives to manufacturers and consumers.
• Building sector: The Energy Conservation Building Code (ECBC) sets standards for energy efficiency in commercial buildings, while residential initiatives encourage the use of energy-efficient appliances and systems.

Policy and Regulatory Framework in India's Energy Sector

• Renewable Purchase Obligations (RPOs): Require DISCOMs and large consumers to purchase a percentage of their electricity from renewable sources, promoting market development.
• Incentives and subsidies: Financial incentives such as capital subsidies and tax benefits to encourage the development of renewable energy projects.
• Open access policy: Allows large consumers to directly purchase electricity from renewable generators, thereby encouraging competition and reducing costs.
• Net metering: Allows consumers with rooftop solar panels to feedback excess electricity into the grid, thereby supporting distributed energy systems.

Challenges Faced in the Energy Sector

• Financial barriers: High upfront costs act as a barrier to project development accessible financing is needed.
• Grid integration: Technical problems in grid integration of renewable sources require investments in modernization and storage.
• Land acquisition: Large projects face land-use conflicts and environmental issues, which require careful management.
• Regulatory uncertainty: Frequent changes in policies create investment uncertainty hence, a stable regulatory environment is required.

Conclusion

The transformation of the Indian energy landscape is indeed an important endeavor that serves the purpose of balancing India's economic growth with environmentally friendly sustainability. As far as India's growing requirement for energy is concerned, renewable sources are the prime focus to reduce carbon and provide energy security. Prime examples of such targets achieved by the government include producing 450 GW of renewable capacities by 2030, which is net-zero emissions by 2070. But for this vision to be realized, financial barriers, regulatory uncertainty, and grid integration need to be addressed. A technology policy reform and investment strategy will be very important in achieving a successful energy transition in India.