India's Energy Transition: Challenges and Strategies
India is committed to enhancing its clean energy footprint, yet paradoxically, the electricity consumed today is more carbon-intensive than before. This complexity is crucial to understanding India's energy transition.
Current Energy Landscape
- As of June 2025, approximately 50% of India's installed capacity comes from non-fossil fuel sources.
- The Grid Emission Factor (GEF) increased from 0.703 tCO₂/MWh in 2020–21 to 0.727 tCO₂/MWh in 2023–24.
- This increase is attributed to the difference between capacity and generation.
Challenges in Renewable Energy Utilization
- Renewable sources like solar and wind operate at 15-25% capacity utilization, compared to 65-90% for coal and nuclear.
- In 2023-24, only 22% of electricity was from renewables; the majority came from fossil fuels.
- Mismatch in electricity demand and renewable availability, with peak household demand occurring when renewables are least available.
Strategies for Decarbonization
India must enhance flexibility and efficiency to effectively transition to clean energy:
- Adopt Round-the-Clock (RTC) renewable electricity.
- Implement policies for land, transmission, and investment to support renewable energy.
- Increase energy efficiency, termed the "first fuel," to reduce reliance on coal.
- Promote efficient appliances and industrial processes to flatten demand peaks.
Benefits and Evidence of Energy Efficiency
- Energy efficiency can save 200 Million Tonnes of Oil Equivalent, equivalent to 1.29 GT of CO2eq, resulting in savings of approximately ₹760,000 crore from FY2017-18 to FY2022-23.
- Countries like France and Norway have lower GEFs due to significant hydro and nuclear electricity.
Recommendations for India
- Enable integration of household and office batteries into virtual power plants.
- Enhance appliance efficiency standards and promote high-efficiency products.
- Encourage SMEs to adopt efficient technologies.
- Implement flexible pricing to shift demand to renewable availability periods.
- Introduce incentives for scrapping old equipment.
- Support electricity distribution companies in procuring high-efficiency services.
Projected Outcomes
- The Central Electricity Authority projects a reduction in GEF to 0.548 by 2026-27 and 0.430 by 2031-32.
- India reduced emissions intensity by 33% from 2005 to 2019.
To genuinely decarbonize its grid, India must prioritize efficiency and flexibility over fossil fuels, ensuring a sustainable energy future.