INDIA’S GREEN ENERGY TRANSITION: ENVIRONMENT

INDIA’S GREEN ENERGY TRANSITION: ENVIRONMENT

NEWS:  The World Bank has approved a second round of 1.5 billion dollars in financing to help India accelerate the development of low-carbon energy. 

WHAT’S IN THE NEWS?

World Bank Financing for India's Low-Carbon Energy Development

  • Approval: Second round of $1.5 billion financing in June 2023.
  • Purpose: Accelerate low-carbon energy development, expand green hydrogen production, and boost finance for low-carbon investments.

India’s Green Energy Transition

  • Challenge: Balance economic growth with environmental sustainability by transitioning from fossil fuels to renewable energy.
  • Sectors: Electricity, industry, transport, agriculture, cooking, etc.

Present Status

  • Global Rankings:
    • 4th in Renewable Energy Installed Capacity.
    • 4th in Wind Power capacity.
    • 5th in Solar Power capacity.
  • Growth:
    • Highest year-on-year growth in renewable energy additions: 9.83% in 2022.
    • Solar energy capacity increased 30 times in 9 years; 84.27 GW as of May 2024.
  • Energy Transition Index: Ranked 63rd globally by the World Economic Forum (June 2024).

 Advantages

  • Environmental: Improves air quality and mitigates global warming by reducing coal and fossil fuel dependency.
  • Energy Security: Reduces reliance on imported fossil fuels, stabilizes prices, and mitigates geopolitical risks.
  • Economic Opportunities: Job creation, technological innovation, investment attraction. India as a global hub for solar energy manufacturing.
  • Global Inspiration: Potential largest green workforce, domestic supply of battery materials via recycling, contributing to climate change mitigation.

Challenges

  • Financial Viability: High initial capital costs, land acquisition, financing barriers.
  • Infrastructure Development: Logistical and bureaucratic hurdles in building transmission lines, substations, and storage facilities.
  • Policy and Regulatory Framework: Inconsistencies, regulatory delays, and evolving frameworks.
  • Lack of Trained Manpower: Shortage of professionals with specialized skills in renewable energy technologies.

Initiatives

  • Green Hydrogen: Development of a domestic market and private sector interest under the National Green Hydrogen Mission.
  • FDI: 100% Foreign Direct Investment under the automatic route for renewable energy projects.
  • Schemes: Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop.
  • Panchamrit: Target of 500 GW non-fossil fuel-based energy by 2030.
  • OSOWOG: One Sun, One World, One Grid initiative proposed by PM Modi in October 2018.

Way Forward

  • Resources: Utilize long coastline, abundant sunshine, and vacant lands for hydro, solar, and wind power generation.
  • Potential: Rank among top global producers of wind and solar energy.
  • Commitment: Continue renewable energy targets, supportive policies, technological advancements, and international collaborations.
  • Leadership: Address challenges to meet energy needs sustainably and emerge as a global leader in renewable energy.

Source: https://www.newsonair.gov.in/world-bank-approves-2nd-round-of-1-5-billion-dollars-in-financing-to-help-india-accelerate-development-of-low-carbon-energy/#:~:text=Earlier%2C%20in%20June%202023%2C%20the,finance%20for%20low%2Dcarbon%20investments.