Mainstreaming the Energy Transition in India’s Policy Framework – Center on Global Energy Policy at Columbia University SIPA | CGEP %

Sustainable Development Goals (SDGs) in India’s Energy Policy

Key Accomplishments

India, as the world’s most populous country, fifth-largest economy, and third-largest emitter of CO₂, has implemented various policies to address its energy trilemma of ensuring energy security, affordability, and sustainability. The country has set ambitious targets for the future, including increasing its share of non-fossil electricity generation capacity to 50 percent by 2030, accounting for 500 gigawatts (GW). This requires a significant increase in annual capacity addition compared to previous years. India has also committed to becoming energy independent by 2047 and achieving net-zero emissions by 2070. Several new policies have been announced to achieve these objectives.

Financing the Transition

India has taken economic measures to accelerate decarbonization, including the establishment of a green bond market. The country has successfully issued sovereign green bonds worth $2 billion, with the aim of attracting capital for the energy transition. The 2023-24 Union Budget has also increased allocation towards green infrastructure, particularly renewable energy and nuclear power. The budget speech indicated subsidies for electricity storage projects. Additionally, the Ministry of Power has introduced the Carbon Credit Trading Scheme (CCTS), which will create incentives to reduce industrial emissions.

Growth in Non-Fossil Electricity

India’s National Electricity Plan projects a significant increase in total installed electricity capacity, with a focus on non-fossil sources. The plan aims to increase total installed capacity from the current 431 GW to 900 GW by 2031-32, with 615 GW expected to come from non-fossil sources. The share of renewable energy capacity in India’s electricity generation mix is projected to grow from 42 percent to 66 percent by 2031-32, primarily driven by solar and wind energy.

Frontier Technologies

India is expanding its technology toolbox to support the energy transition. The country will bid out offshore wind energy blocks and has set targets for green hydrogen production. India is also developing small modular reactors and exploring the exploitation of newly discovered lithium ore. These technologies will play a crucial role in achieving India’s energy transition goals.

Challenges in the Near Term

Despite significant achievements, India faces challenges in achieving its energy transition targets. The country will require substantial investments, estimated between $160 billion and $200 billion per annum, to meet its goals. Private and international capital will be crucial, and efforts to attract these investments need to be intensified. India also needs to enhance its domestic manufacturing capabilities for green infrastructure and create a skilled workforce to support the just energy transition.

Notes

1. United Nations, Department of Economic and Social Affairs, “UN DESA Policy Brief No. 153: India overtakes China as the world’s most populous country,” April 24, 2023.
2. International Monetary Fund, “World Economic Outlook: A Rocky Recovery,” April 2023.
3. Energy Institute, “Statistical Review of World Energy 2023.”
4. Government of India, “India’s Updated First Nationally Determined Contribution Under Paris Agreement (2021-2030),” August 2022.
5. Prime Minister’s Office, Press Information Bureau, “National Statement by Prime Minister Shri Narendra Modi at COP26 Summit in Glasgow,” November 1, 2021.
6. Kaushik Deb and Pranati Chestha Kohli, “Assessing India’s Ambitious Climate Commitments,” Center on Global Energy Policy, December 8, 2022.
7. Prime Minister’s Office, Press Information Bureau, “English Rendering of the Text of PM’s Address from the Red Fort on 75th Independence Day,” August 15, 2021.
8. Prime Minister’s Office, Press Information Bureau, “National Statement by Prime Minister Shri Narendra Modi at COP26 Summit in Glasgow,” November 1, 2021.
9. The policy choices India faces in its energy transition will also be discussed at the upcoming Columbia India Energy Dialogue, hosted by the India Program at the Center on Global Energy Policy (CGEP), on September 18, 2023.

SDGs, Targets, and Indicators

Explanation

SDG 7: Affordable and Clean Energy

The article discusses India’s commitment to increasing its share of non-fossil electricity generation capacity to 50 percent by 2030. This aligns with SDG 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all. The target under SDG 7 that can be identified is 7.2, which focuses on increasing the share of renewable energy in the global energy mix. However, the article does not mention any specific indicators related to this target.

SDG 9: Industry, Innovation, and Infrastructure

The article mentions India’s efforts to attract capital to finance a just energy transition and increase the share of non-fossil electricity. These efforts align with SDG 9, which aims to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation. The target under SDG 9 that can be identified is 9.4, which focuses on upgrading infrastructure and retrofitting industries to make them sustainable. However, the article does not mention any specific indicators related to this target.

SDG 11: Sustainable Cities and Communities

The article does not directly address issues related to sustainable cities and communities, so there are no specific SDGs, targets, or indicators that can be identified in this context.

SDG 13: Climate Action

The article mentions India’s ambitious climate commitments, including targets to increase the share of non-fossil electricity and achieve net zero emissions. These commitments align with SDG 13, which focuses on taking urgent action to combat climate change and its impacts. However, the article does not mention any specific targets or indicators related to SDG 13.

SDG 17: Partnerships for the Goals

The article highlights the need for bold policy decisions and influencing a range of stakeholders to achieve India’s energy transition goals. This aligns with SDG 17, which emphasizes the importance of partnerships and collaboration to achieve the Sustainable Development Goals. The target under SDG 17 that can be identified is 17.17, which focuses on encouraging and promoting effective public, public-private, and civil society partnerships. However, the article does not mention any specific indicators related to this target.

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Source: energypolicy.columbia.edu

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