Introduction:
Presently, over 80% of India’s energy needs are met by coal, oil, and solid biomass, as per the International Energy Agency’s India Energy Outlook 2022. However, a consensus is emerging to shift towards non-conventional alternatives like solar and wind, green hydrogen, etc., to diversify the energy portfolio.
Body:
Reasons for India to diversify its energy portfolio:
- International Consensus Against Conventional Use: The Sharm El Sheikh declaration at CoP27 advocates for reducing coal usage, aligning with global efforts to lower greenhouse gas emissions.
- Global Market Uncertainty: The recent surge in coal and crude oil prices due to the Russia-Ukraine war underscores the volatility of international markets. Diversification would reduce dependence on imported energy, bolstering India’s energy security.
- Growing Price Competitiveness: Advances in renewable energy technology have substantially reduced costs, making renewables increasingly competitive in the market.
- Long-Term Viability: Renewables represent a secure long-term investment, with wind or solar farms designed for extended operation, aligning with policymakers’ visions.
- Government Support: Supportive policies, incentives, and infrastructure development initiatives contribute to the growth of non-conventional energy for social and economic progress.
- Resource Potential: Studies suggest that, with modern technologies, wind energy capacity in India could be scaled 40-64 times higher than current levels.
- Market Development Initiatives: Exploring offshore wind, establishing solar parks, and constructing transmission corridors will drive the growth of the green economy.
Alternative energy options to coal and crude oil:
- Nuclear Energy: Progressing with the construction of 10 ‘fleet mode’ nuclear reactors from 2022 to 2025-26.
- Biofuels: Utilizing agricultural waste for fuel generation, aligning with India’s National Biofuel Policy.
- Green Hydrogen: Considered the fuel of the future, offering high energy output with no emissions.
- Small Hydroelectric Power: Constructing run-of-river dams with capacities below 25 Megawatts to minimize environmental impact.
- Research in Storage: Advancements in storage technologies for solar and wind energy enhance reliability, supporting a stable power supply to replace thermal power plants.
Key policy options for India’s energy transition:
- Demand-Side Reforms: Reduce taxes on electric vehicles and promote solar photovoltaic technology to encourage the adoption of green technology.
- Effective Implementation of Renewable Energy Certificates: Coupled with Renewable Purchase Obligations, these mechanisms can incentivize renewable energy adoption.
- Financial Resource Mobilization: Utilize financial intermediaries and instruments, such as green bonds, to attract investment and prioritize a green recovery.
Conclusion:
India possesses numerous options to diversify its energy mix and should take deliberate steps to position itself as a global leader in the energy transition. Continuous advocacy for financial and technical support from advanced countries at international forums is vital for ensuring a just transition and securing energy for the global south.
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