Impact of Renewable Energy on India's Energy Mix

renewable energy percentage in India


India is currently the third largest energy consumer in the world after China and the United States. With a population of over 1.3 billion and a rapidly growing economy, India's energy demands are rising exponentially. 


This surging energy consumption is being driven by factors such as economic development, industrialisation, rising household incomes, and urbanisation. More Indians are shifting to higher standards of living which requires increased usage of appliances, vehicles, and other energy-intensive technologies. Key sectors like transportation, construction, manufacturing and services have high energy dependence and account for a major share of India’s total commercial energy consumption.


Over-reliance on Fossil Fuels

To meet the ballooning energy needs of its populace and industries, India has traditionally relied heavily on domestic coal reserves and imported fossil fuels like oil and natural gas. Coal alone comprised nearly 55% of the commercial energy needs of the country. India possesses the world's fifth largest coal reserves and is one of the largest importers of crude oil - making it highly vulnerable to international energy market fluctuations.


This overdependence on fossil fuels, particularly coal, has had detrimental environmental, economic and security consequences for India:


  • Climate change impact: Burning of coal and other fossil fuels has significantly contributed to India's greenhouse gas emissions and exacerbated the threat of climate change. India is among the countries most severely impacted by global warming.

  • Air pollution crisis: Coal combustion for power generation has worsened India's already severe air quality issues in many cities. According to one study, over 1.67 million deaths can be attributed to air pollution each year in India [3].

  • Stressed utilities: Reliance on imported coal has burdened state power distribution companies with escalating costs, cascading into unsustainable debt levels. This has stressed the electricity grid network.

  • Energy security: Dependence on foreign energy sources leaves India vulnerable to supply disruptions and price volatility in global markets.

It is evident India needs to rapidly diversify its energy mix away from fossil fuels to more indigenous and renewable sources for sustainability as well as energy security reasons. This is where renewable energy policies come into the picture.


With coordinated efforts from the central and state governments, India has established a conducive framework to incentivize renewable capacity addition and grid integration through various financial schemes, policies and market-based mechanisms. These policies have borne considerable fruit in revolutionizing India's energy mix in recent years.


Impact on Renewable Energy Capacity and Percentage

The multiple renewable energy policies put in place by India over the past decade have successfully boosted the share of non-fossil-based capacity. The ramping up of renewable electricity has been instrumental in mitigating dependencies on coal and imported fuel sources. It has also helped India surpass initial renewable energy targets by a wide margin, positioning the nation as a global leader.


Let us explore how renewable policies have transformed India's energy mix and facilitated Grid decarbonisation in India.


Facilitating Grid Decarbonisation


In efforts towards grid decarbonisation, India has pursued progressive strategies centered around transitioning power systems to cleaner fuels. Major policy-driven initiatives in this regard include:


  • Retirement of coal plants: Some states have directed early retirement of aging, inefficient coal power stations and promoted replacement capacity from renewables like solar and wind. This is reducing reliance on coal for electricity in a phased manner.

  • Promoting carbon-free power: Renewable Purchase Obligations mandated minimum renewable sourcing percentages for discounts to ensure the bulk of supply comes from zero-carbon technologies. Several states now get over 25% of power from renewables.

  • Energy storage additions: Battery storage targets were set by various states to balance intermittent renewable power supply and improve grid flexibility for higher renewable absorption.

  • Distributed energy resources: Rooftop solar incentives were offered by states to deploy millions of solar panels on household and commercial premises, thereby decentralizing renewable capacity.

  • Electric vehicles push: State EV policies aim to simultaneously address mobility transition and improve load profiles of local grids through managed charging infrastructure.


These policies have been foundational in aiding India's transition to a cleaner, green electricity system while addressing energy security imperatives. The nation is steadily enhancing its renewable energy percentage in India to realize deeper grid-level decarbonisation objectives.


Challenges and the Road Ahead

Despite noteworthy progress due to a stable policy push, renewable energy scale-up in India continues to face certain roadblocks:


  • Land acquisition and transmission infrastructure bottlenecks hinder large projects.

  • Power evacuation remains an issue due to inadequate inter-state connectors between renewable rich and deficit regions.

  • Seasonal and time-of-day generation mismatches persist with coal-based plants.

  • Distribution utilities grapple with the integration complexities of variable renewables.

  • Financing remains a constraint for distributed and rooftop projects amid policy uncertainties.

  • For accelerated future capacity expansion, India must prioritize energy storage, smarter grids, cross-border grid cooperation, renewable hybrid systems, and supply chain self-reliance. Robust policy interventions are needed across risk mitigation, market structures, technological innovation, financing mechanisms, and workforce development.


With persistent efforts, India aims to achieve 50% cumulative electric power capacity from non-fossil energy sources by 2030. This will take the nation closer to net-zero emissions. Sustained investments in renewable energy offer co-benefits of energy and climate security while powering India's growing economy.


Conclusion

In the end, India's renewable energy sector has witnessed a revolution and the transformative impact of these incentives is evident through exponential capacity growth, grid decarbonisation progress and diversification away from fossil fuels. While barriers persist, India is firmly on track to transition towards a more equitable and sustainable energy future through the prioritisation of clean and sustainable resources. Ongoing technological advancements will shape India's future energy landscape and aid the nation in fulfilling its climate change commitments.

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