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Prime Minister Modi’s vision for India’s energy evolution embodies this ethos—One Nation, One Agenda. This agenda is not just about achieving energy security but about leveraging energy as a tool for national and global development. With bold targets, strategic partnerships, and innovative policies, India is positioned to lead the world into a cleaner, brighter, and more prosperous future.
As India strives toward becoming a Viksit Bharat, the role of energy in this transformation cannot be overstated. Energy, in all its forms, is the backbone of national development.
From powering industries to fuelling homes, the evolution of India’s energy sector is essential in ensuring both economic growth and environmental sustainability. The roadmap for India's future is clear—One Nation, One Agenda: Development. And at the heart of this agenda is a revolutionary shift in energy policy.
The Decarbonisation Mandate: Leading the Global Clean Energy Transition India’s energy revolution took a bold turn at COP26 when Prime Minister Narendra Modi announced the ambitious 2030 decarbonisation target. With a goal to decarbonise 50% of the energy mix and achieve 500 GW of non-fossil fuel-generating capacity, this marked a transformative moment in India's global environmental leadership.
These targets were not just a symbolic commitment to international climate agreements but represented India’s firm stance on marrying growth with sustainability.
This is an important leap, far exceeding expectations from the Paris Agreement and showcasing India’s determination to reduce its carbon footprint while maintaining its trajectory toward becoming a global economic powerhouse. This transformation requires a well-strategised transition to clean energy, balancing the immediate needs for growth and the long-term necessity for sustainability.
India has made rapid strides in both its electricity generation and consumption over the past two decades. Per capita electricity consumption rose from 559 kWh in 2001 to 1,208 kWh in recent years, with an expected tripling as the country progresses towards higher living standards.
All Indian households are now electrified, and the national power grid is integrated to facilitate optimal energy distribution. However, as India’s economy continues to expand, the demand for reliable, affordable, and roundthe-clock power will grow significantly. Addressing this surge requires not just an expansion of energy capacity but a conscious effort to embrace renewable energy sources.
India now boasts the world’s fifth-largest solar capacity and fourth-largest wind capacity, with around 200 GW of renewable energy installed. Renewable energy accounts for over 40% of the total electricity generation capacity. To ensure sustainable growth and maintain its leadership in global climate initiatives, India must expand this share exponentially over the coming decades.
India’s commitment to a sustainable energy transition is not a solo journey. The country has formed significant international partnerships, particularly with the United States, to facilitate the shift toward clean energy. As part of the U.S.-India Strategic Clean Energy Partnership, both nations are collaborating to enhance manufacturing capacity for clean energy technologies and components.
This effort is designed to capture the economic and environmental benefits of the clean energy revolution, including the creation of high-quality jobs and the accelerated deployment of clean energy solutions globally.
Together, the U.S. and India are laying the groundwork for enhancing manufacturing capabilities in solar, wind, battery storage, and energy-efficient technologies. This partnership is poised to catalyse USD 1 billion in multilateral financing through the International Bank for Reconstruction and Development (IBRD) to expand clean energy manufacturing, focussing on solar and wind technologies, energy storage, and electric vehicle infrastructure.
Furthermore, this bilateral collaboration extends beyond borders, as India and the U.S. aim to foster partnerships in Africa, driving clean energy deployment in developing nations. This trilateral cooperation underscores India’s emergence as a global clean energy leader and its role in reshaping the world’s approach to sustainable energy.
India’s energy evolution is also fuelled by robust policy initiatives that encourage innovation, investment, and adoption of clean energy.
The Production Linked Incentive (PLI) schemes, with over $4.5 billion allocated to catalyse clean energy manufacturing, are testament to the government’s commitment to localising supply chains and reducing reliance on imports. By incentivising domestic production, India is not only securing its energy future but also contributing to global energy resilience.
On the international stage, India's policy framework aligns with the U.S. Bipartisan Infrastructure Law and the Inflation Reduction Act, both of which aim to reinvigorate manufacturing capacities for clean energy technologies. This shared vision between the world’s largest democracies sends a strong signal to the rest of the world: development and sustainability can—and must—go hand in hand.
The journey toward a Viksit Bharat is one of growth, inclusivity, and resilience. Energy plays a pivotal role in this narrative. As India transitions to a cleaner, more sustainable energy system, it is setting a powerful example for the world. By balancing the need for rapid economic growth with the imperative of reducing carbon emissions, India is crafting a future where development is not just about economic progress but about fostering a better, greener world for generations to come.
Prime Minister Modi’s vision for India’s energy evolution embodies this ethos—One Nation, One Agenda. This agenda is not just about achieving energy security but about leveraging energy as a tool for national and global development. With bold targets, strategic partnerships, and innovative policies, India is positioned to lead the world into a cleaner, brighter, and more prosperous future.
As we continue this transformative journey, let us embrace the spirit of Jai Urja, Jai Bharat—empowering our people with education, innovation, and sustainability to shape a Viksit Bharat that is as green as it is strong.
This article first appeared in The Economic Times on 11 October 2024.
