The Green transition India needs

As COP29 negotiations unfold amidst global political uncertainties and regional conflicts, India faces the dual challenge of decarbonizing its economy while ensuring sustainable economic growth and attracting climate finance. The country must adopt seven critical shifts to build a green, resilient, and clean energy system that aligns with its growing power demands and emerging climate goals.

Key Shifts in India's Energy Transition

• Decentralized Energy Systems: India needs to shift from centralized to decentralized energy systems by scaling up distributed renewable energy (DRE) sources. While rooftop solar potential is significant, affordability remains a barrier for lower-income groups, requiring market-driven interventions like community solar models.
• Opex Model for Clean Energy: A shift is required from traditional capital expenditure (capex) models to operational expenditure (opex) models. This would involve pay-as-you-go models for solar installations, energy efficiency services, and electric transport, reducing the financial burden on individual consumers.
• Climate-Resilient Investments: Investment in climate-resilient energy infrastructure should replace short-term financial risk considerations. As more than 80% of India’s population now lives in climate-vulnerable districts, making energy systems resilient against climate shocks is the least risky long-term strategy.

Strategic Approaches for Economic Integration

• Global Clean Energy Supply Chains: India should move beyond protectionist policies and focus on plugging into global clean energy supply chains. By adding value and collaborating on solar PV and green hydrogen, India can contribute to building a global rules-based energy architecture.
• Integration of Decarbonisation and Digitalisation: With India’s rapid internet penetration, integrating decarbonisation with digital technologies, such as AI systems, smart appliances, and meters, can optimize energy flow and enhance system resilience. Smart meters and digitally managed grids can become key elements of future energy business models.
• Circular Economy for Critical Minerals: India must transition to a circular economy, particularly for critical minerals used in clean energy technologies. The management of solar waste and recovery of valuable minerals such as silicon and cadmium is crucial to both environmental sustainability and mineral security.

People-Centric Approach to the Energy Transition

• Financing End-Use Consumers: Shifting the focus from financing large power developers to financing end-use consumers is vital. This includes supporting consumers who wish to buy electric vehicles, install solar panels, or adopt energy-efficient appliances.
• Investment in Consumer-Centric Business Models: Small-scale investments in individual consumers can create a market of substantial size. By developing financial portfolios for consumers, India can unlock a massive opportunity for clean energy adoption.
• Centrality of People in Policy Making: The energy transition should prioritize people at its core, ensuring that policies benefit end-users and align with the needs of both rural and urban consumers for cleaner energy access and affordable energy solutions.

Practice Question

Q. Discuss the seven fundamental shifts India must adopt to build a sustainable, resilient, and clean energy system in the context of its growing power demand and climate commitments. How can these shifts align with India’s broader economic and environmental goals?