Blog Details

Table of contents

Introduction

India towards net zero emissions strategies

G20 Summit Discussions

Different clean energy sources

Conclusion

FAQs

Introduction

Long-term changes in temperature and weather patterns can be caused by natural causes, but since the start of the industrial revolution in the 19th century, human activity has been the main cause of climate change. Emissions of greenhouse gases (GHGs) trap the Sun's heat in the atmosphere for tens to hundreds of years. Although these, in moderation, contribute to a more hospitable Earth by facilitating favourable weather, increased emissions have resulted in rising temperatures that have the potential to raise the sea level, alter monsoon patterns, and affect land systems. The globe has already begun to feel the effects of rising carbon emissions, therefore action to cut them and adapt to changing climate conditions is desperately needed. For example, projections indicate that the drought alone may force 700 million people to relocate by 2030. The main cause of climate change is the industrialized countries' historically high per capita annual emissions of greenhouse gases as well as their disproportionately high accumulated emissions. Many countries promise to cut their net emissions to zero by the year 2050.

A fundamental change from the usage of energy derived from fossil fuels to renewable energy is referred to as "energy transition." As shareholders and other stakeholders want clarification on their long-term visions for minimizing climate risks, organizations have recently been moving in this direction. Technology developments and societal efforts to promote sustainability may facilitate the switch from the use of dirty, non-renewable energy sources like coal, oil, and natural gas to cleaner, more sustainable energy sources like wind, solar, and hydrogen. Plans for energy transition are urgently needed, and financial institutions and businesses must be required to make disclosures. Plans for transitioning to net zero carbon emissions across an organization's supply chains and activities involve concrete, actionable measures. But having a strategy does not ensure that it will work. In order to get carbon neutrality, more work has to be done than simply increasing the proportion of renewable energy sources in the energy mix. Carbon emissions from existing energy infrastructure must be further reduced and eventually eliminated.

Realizing how critical it is to tackle climate change, India has set a goal to achieve net-zero by the year 2071. In addition to its overarching objective for 2070, India has established goals for 2030. In recent years, India's power industry has experienced fast change. Every house in the nation has been electrified effectively. There is enough capacity for generating power whose best use is made possible by a national grid integrated within itself. From 559 kWh in 2001, India's per capita electricity usage now is 1208 kWh. At least three times as India's economic growth picks up speed and living standards of its people climb in the next decades. The aim for the next few years is dependable, reasonably priced, high quality, round-the-clock power for all.

India towards net-zero emissions strategies

India is currently dedicated to reaching net zero emissions and the decarbonization energy transition. India has advanced remarkably in the last several years. With a combined capacity of over 100 GW, it now possesses the fifth greatest solar and fourth largest wind power capacities in the world. Even though renewable energy now accounts for more than 10% of the nation's overall electricity production, fossil fuels still produced more than 70% of the nation's electricity in 2021.

Meet 50% of its energy requirements from renewable energy

Reach non-fossil fuel capacity of 500 GW

Reduce carbon emissions by 1 billion tonnes

Reduce carbon intensity by 45%

In the preceding ten years, India made steady progress in all three energy triangle parameters. According to the 2023 Energy Transition Index (ETI), the country is ranked 67th out of 120 nations. The nation's achievement of universal access to electricity, the shift from solid fuels to clean cooking options (mostly LPG), and the rise in the usage of renewable energy sources are principally responsible for the performance improvement. India was largely spared from the last energy crisis because it uses more natural gas and depends less on it to generate electricity.

Important energy-related transition programs

1. Production-linked incentives (PLIs): PLIs are programs that use renewable energy to support domestic production and self-sufficiency in the energy sector. The installation of 65GW of capacity through an investment of INR19.500bn is made possible by the Indian government's launch of a PLI worth INR15 billion. By 2030, India wants to have 500GW of renewable energy capacity, including 280GW coming from solar energy.

2. Energy Conservation Amendment Bill, 2022: This bill amends the Energy Conservation Act of 2001 in order to expedite the attainment of the COP26 objectives, which include limiting global temperature increase to 1.5oC and reaching net zero emissions by the middle of the century. It also introduces new ideas, such as the requirement for the use of non-fossil fuels and the trading of carbon credits, to ensure a quicker decarbonization of the Indian economy. It also gives the federal government the authority to establish a carbon credit trading program and an energy-saving construction code.

3. Plans for clean energy: As was already indicated, India aims to develop 500GW of renewable energy capacity by 2030; this will require at least INR2.44 trillion in investments. At an estimated cost of INR28 billion, the transmission plan also includes the systems required to transport 10GW of offshore wind-based electricity in Gujarat and Tamil Nadu. The inter-regional capacity is predicted to rise from its current 112GW to around 150GW by 2030 with the implementation of the proposed transmission infrastructure. By 2030, India would obtain almost half of its energy needs from non-fossil fuel sources in accordance with international climate agreements. Since the production of renewable energy has decreased, the plan calls for installing a 51.5GW battery storage capacity by 2030 to provide end users with continuous power.

4. National Green Hydrogen Mission: India has ambitious goals for hydrogen (H2), but it would take a lot of work to meet them. In order to achieve energy independence by 2047 and accomplish its decarbonization targets, the central government intends to commercialize green hydrogen. By 2030, the Mission wants to create at least 5 million metric tons (Mt) of H2 annually in order to meet the country's hydrogen needs. Additionally, the nation intends to use expanding export markets to produce up to 10 million tons of H2. USD 2.4 billion has been set aside by the national government for the Mission. Subsidies to lower the cost of producing green hydrogen are allotted 88% of the money under the Strategic Interventions for Green Hydrogen Transition (SIGHT) initiative. The rest of the money will go toward R&D, green H2 centers, and testing new concepts. By 2030, the Mission is expected to generate up to USD 100 billion in total investment and help build 125 W of renewable power.

5. Current cooperation: In New Delhi, Saudi Arabia and India inked an agreement on energy cooperation on September 10, 2023. Along with encouraging bilateral investment in renewable energy, the authorities will work together to develop energy efficiency, renewable energy, hydrogen, electricity, and grid interconnection between the two nations. They will also concentrate on the circular economy and its technologies, such as carbon capture, utilization, and storage (CUS), which help lessen the effects of climate change.

G20 Summit Discussions

With the opening of the India-Middle East-Europe Economic Corridor, world leaders have ushered in a new era of connectivity that will see a railway link connecting Asia, Europe, and the Middle East. In order to increase dependable access to electricity, the US and other nations also plan to connect to commercial hubs, facilitate the development and export of clean energy sources like hydrogen, lay underwater cables, connect energy grids and telecommunication lines, foster the advancement of clean energy technology, and link communities to a stable and secure internet.

India, the United States, and Brazil are the other founding members of the Global Biofuel Alliance. The partnership seeks to improve the use of biofuels sustainably, especially in the transportation industry. It is also anticipated to increase demand for biofuels, promote international commerce in biofuels, create legislation, and offer technical assistance for national biofuel initiatives throughout the world. Additionally, it intends to collaborate with global organizations and programs in the fields of bioenergy, bioeconomy, and energy transition, such as the Global Bioenergy Partnership (GBEP), the Mission Innovation Bioenergy Initiatives, and the Clean Energy Ministerial Biofuture Platform. The Union Ministers of Housing and Urban Affairs, Petroleum and Natural Gas, and announced in July 2023 that the timeframe for reaching 20% ethanol blending (E20) would be pushed forward from 2030 to 2025.

The G20 leaders intend to triple the world's renewable energy capacity by 2030 in order to hasten the transition to sustainable energy and tackle climate change. The financial leap required for the world to transition to an economy based on renewable energy was openly acknowledged for the first time in the G20 leaders' New Delhi Declaration. According to the New Delhi Declaration, developing nations must aim to invest USD5.8–5.9 trillion yearly in clean energy technology by 2030, and USD4 trillion annually after that in order to achieve net zero by 2050.

On September 9, 2023, the G20 leaders adopted a green development agreement to hasten the advancement needed to solve environmental and climate change concerns.

Different clean energy sources

Solar- Solar energy could provide 30% of India's electricity needs by 2030, generating millions of employment and avoiding the importation of billions of fossil fuels. In the fight against global warming, solar power represents more than just financial rewards; it represents India's dedication to the promises made in the Paris Agreement and its belief that "Vasudhaiva Kutumbakam" (the world is one family). Future solar energy generation offers major positive effects on the environment and society in addition to financial gains.

Against this backdrop of environmental crisis, India's solar journey presents a powerful story. It's a story about overcoming obstacles and using the sun's limitless energy to sustainably light up lives. India's solar story serves as a reminder on this World Environment Day that, one solar panel at a time, we can create a brighter, greener future through innovation, policy support, and collective resolve.

India is positioned as a leader in the renewable energy sector by maintaining its focus on solar energy, which is in line with global sustainability goals. In light of the pressing global need to address climate change, India's solar energy industry serves as a ray of hope and a living example of the potential of sustainable innovation.

Wind - India has already made great progress toward expanding its solar energy industry. For continuous power generation, wind energy will be a vital complement to other renewable energy sources like solar. Because of its higher capacity utilization factor and longer generation period, wind energy—such as offshore wind projects—is important for the production of green hydrogen.
With regard to installed wind energy capacity, India now ranks fourth in the world11 and has room to grow to a far greater extent.
India does not currently have the domestic manufacturing capacity to produce offshore wind turbines with longer rotor blades made of high-tech materials like carbon fiber or other new composite materials that are more environmentally friendly, stronger, and can be produced economically and in large quantities. Establishing a domestic manufacturing ecosystem could lower costs and boost the uptake of new technologies for large-scale wind turbine and component projects. Governmental measures like production-linked incentives for these kinds of projects would contribute to the uptake of wind energy and lead to the construction of export hubs for a technology that is becoming more and more popular worldwide in addition to promoting energy independence.

Gas - Currently, natural gas makes up roughly 6.7% of India's energy mix12; by 2030, the government wants to increase this percentage to 15%. The Central Electricity Authority (CEA) reports that there are currently 25,000 MW of gas-based power capacity available.
Gas, in addition to renewable energy sources, is crucial to a clean energy plan because of the flexibility it offers the power grid. When necessary, plants may swiftly switch on and off, modify their power output levels, and reduce their output to a very low level in order to balance supply and demand. Renewable energy sources require dispatchable backup power, like natural gas power plants, or storage, like batteries, to provide system dependability because the supply and demand of electricity must constantly be in balance.
Gas is a good fit because of its high energy density, which requires less area, which is important in large cities, and its smaller environmental impact. Nonetheless, gas-based power plants are not used very often in India.
Low gas infrastructure, high and unstable costs, and a heavy reliance on imports are obstacles to growing the use of natural gas. However, India ought to think about employing gas plants sparingly considering the significance of gas in the broader clean energy agenda.
According to the CEA's statistics, gas-based power plants currently produce roughly 50% fewer emissions than coal-based power plants. Carbon capture, utilization, and storage (CCUS) and the use of low-carbon fuels, such hydrogen, can further reduce the carbon footprint of natural gas-based power plants, making them futureproof investments for immediate emissions reductions.
Increased spending on gas sources and infrastructure is required.
It might be necessary to revive and refit the current gas plants in order to make them functional, especially for 24/7 power projects.
By encouraging frequent bidding and capacity expansion plans, it is necessary to accelerate the building of gas infrastructure (Pipelines and LNG terminals) in order to meet the long-term, multifold demand that is anticipated. Volumes are necessary to support the pipeline network's expansion. The world's largest use of gas is in the production of electricity.
Competitiveness in gas prices

To make gas more competitive, India's new Goods and Services Tax (GST) system may cover gas.

More freedom to invest and generate more gas, extracted in an economically and practically viable manner, may be granted to producers.

Through pilot projects under the National Hydrogen Mission, the nation might implement a clearly defined gas price strategy, particularly for gas plants for 24/7 power projects.

Encourage the use of hydrogen, which is combined with natural gas in gas power generation.

Cleaner Coal- The technique of extracting CO2 from industrial activities, including power plants that burn fossil fuels, is known as carbon capture and storage, or CCS. After then, the CO2 is moved and kept for a long time, usually underground in geological formations. It is possible to remove the CO2 either before or after combustion takes place.

CCS can cut emissions right where they come from:
According to estimations from the International Energy Agency, CCS may be able to eliminate up to 20% of all CO2 emissions from industrial and energy-producing facilities16.

Additional contaminants can be eliminated concurrently: Nitrogen oxide and sulfur dioxide emissions are significantly reduced during oxyfuel combustion when large quantities of oxygen are employed for combustion17.
Building an Ecological Coal Fleet: The government already announced regulations on March 31, 2021, regarding carbon emission standards for thermal power plants in three categories: those close to the Delhi-NCR or major cities with a population of one million or more; those close to severely polluted areas or non-attainment cities; and others with compliance deadlines in 2022, 2023, and 2025. In order to produce a cleaner coal fleet, these regulations must be put into effect and strictly adhered to by the deadline.
Strict adherence to the deadlines would guarantee capital expenditure programs are implemented and give the industry certainty. Additionally, the government should think about developing a plan to encourage thermal power facilities to invest in pollution control, especially at the state level.

Conclusion

India's economy has been decarbonized mainly by encouraging the use of renewable energy, electrifying its transportation infrastructure, and improving energy efficiency.
India has promised to achieve net-zero emissions by 2070. To sustain its total economic growth, it must also rapidly expand its energy industry. India must establish a clean energy system with the pillars of affordability, sustainability, energy independence, and dependability while adhering to its goals and financial obligations.
There are several options for addressing the technological and financial challenges involved in achieving the aforementioned goal and sustaining robust economic growth. Therefore, there is a critical need for government policy to continue supporting innovation, development, and the implementation of green energy projects while remaining technology agnostic across energy delivery paths.
In summary, the following levers are essential for India to achieve widespread decarbonization:

Optimizing the output of renewable energy, such as offshore wind, supported by equipment made in the country and encouraged by the adoption of suitable production-related incentives, such as those for rotor blades. Government policy should aim to minimize the amount of embodied carbon in the equipment used when creating incentives.

Development of methods to absorb carbon emissions from coal, the country's main source of energy.

Promotion of the use of renewable energy sources by means of the promotion of both cutting-edge and tried-and-true storage technologies

Promoting decarbonization efforts of major commercial and industrial energy consumers by creating carbon markets and facilitating the efficient execution of green open access

Facilitating green finance by creating a shared green taxonomy and framework to finance the investments

FAQs

What is the roadmap for decarbonisation?

Ans. A comprehensive action plan that clearly outlines the steps and benchmarks required to meet decarbonization goals is called a decarbonization roadmap.

What is the decarbonisation strategy of India?

Ans. The strategy includes decarbonizing energy to 50% and achieving 500 GW of fossil fuel-free generating capacity by 2030.

What is the target of India to meet its electricity requirements from renewable energy by 2030?

Ans. 500 GW of renewable energy