Question - Do you think India will meet 50% of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewable help achieve the above objective? Explain. UPSC CSE 2022 Main GS Paper 3.
Answer -
I think India has a good chance of meeting 50 percent of its energy needs from renewable energy by 2030, given its ambitious target and various initiatives to promote clean energy. However, this will also depend on several factors, such as the availability and affordability of renewable energy sources, the pace and scale of transmission and distribution infrastructure development, the integration and balancing of variable renewable energy with the grid, the adoption and innovation of energy storage technologies, the regulatory and policy support and incentives, the financing and investment climate, the consumer behaviour and demand patterns, the environmental and social impacts, etc.
According to a report by Statista, India has set a target of having 500 GW of installed renewable energy capacity by 2030, which includes 280 GW of solar power, 140 GW of wind power, 50 GW of hydropower, 15 GW of bioenergy, and 15 GW of other sources. This target is higher than the previous target of 450 GW announced by Prime Minister Narendra Modi in 2019. As of September 2021, India had about 100 GW of installed renewable energy capacity, excluding large hydropower projects. This means that India will have to add about 400 GW of renewable energy capacity in the next nine years, which is a challenging but achievable task.
India has taken several measures and introduced favourable policies to promote the domestic manufacturing and deployment of renewable energy sources. Some of these are:
The National Solar Mission, which aims to establish India as a global leader in solar energy by creating an enabling policy framework for the deployment of 100 GW of solar power by 2022.
The National Wind-Solar Hybrid Policy, which aims to provide a framework for the promotion of large grid-connected wind-solar photovoltaic hybrid systems for optimal and efficient utilization of transmission infrastructure and land.
The Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules, which aims to boost domestic manufacturing and reduce import dependence in solar photovoltaic modules.
The KUSUM Scheme, which aims to provide financial and technical support for the installation of solar pumps for irrigation and decentralized solar power plants for farmers.
The Green Energy Corridor Project, which aims to facilitate the evacuation of renewable power from generation sites to load centres by strengthening the intra-state and inter-state transmission systems.
The International Solar Alliance (ISA), which is an initiative launched by India and France in 2015 to mobilize global cooperation for harnessing solar energy among countries lying between the Tropic of Cancer and Tropic of Capricorn.
The shift of subsidies from fossil fuels to renewable energy will help achieve the above objective by creating a level playing field for clean energy sources and reducing the carbon footprint of the economy. Subsidies for fossil fuels distort the market signals and create perverse incentives for the consumption of polluting fuels. According to a report by International Institute for Sustainable Development (IISD), India provided about USD 16 billion worth of subsidies for fossil fuels in 2019. These subsidies include direct transfers, tax exemptions, price support, preferential credit, etc. for coal, oil and gas sectors. On the other hand, India provided about USD 3 billion worth of subsidies for renewable energy in 2019. These subsidies include capital subsidies, generation-based incentives, accelerated depreciation, tax holidays, etc. for solar, wind, biomass, and small hydro sectors.
The shift of subsidies from fossil fuels to renewable energy will help achieve the above objective by:
Reducing the fiscal burden on the government and freeing up resources for investing in clean energy infrastructure and innovation.
Improving the competitiveness and affordability of renewable energy sources and encouraging their adoption by consumers and industries.
Enhancing the energy security and diversity of the country and reducing its dependence on imported fossil fuels.
Mitigating the greenhouse gas emissions and air pollution from the power sector and contributing to the climate change goals and public health benefits.