The ongoing Russia-Ukraine war is pushing the crude prices northwards, which has led energy importing countries to chalk out plans for a clean & sustainable energy transition. Clearly, energy transition is now a business reality that needs augmentation. A quick transition from the existing carbon-based energy systems to green energy systems that are environmentally sustainable and help in resource conservation is the need of the hour.
The Government has set a target to reduce India’s total projected carbon emission by 1 billion tonnes by 2030, reducing the carbon footprint to less than 45% by the end of the decade. In addition, the Government intends to achieve net-zero carbon emissions by 2070 and expand India’s renewable energy installed capacity to 500 GW, which will be around 50% of the country’s energy needs by 2030.
In the last 15 years, India has moved significantly ahead in the RE space with an increase in the installed capacity from 10 GW to 160 GW. Out of this, more than 113 GW is accounted by wind (41 GW) and solar (57 GW), contributing around a quarter of total installed capacity. Along with hydro, it accounts for around 40% of the total installed capacity.
Although, the growth in renewable energy sector was significant, this was mostly powered by imported equipment, especially the ones used in generation of solar energy. Going ahead, India needs to build an enabling manufacturing eco-system for the renewables. Realising the importance of manufacturing of new equipment that runs on renewable energy, the Government allocated a budget of INR 195 billion in the Union Budget 2022-23, for a PLI scheme to boost manufacturing of high-efficiency solar modules. Also, to make domestic manufacturing competitive, Basic Customs Duty of 25% on solar cells & 40% on solar PV modules were imposed w.e.f. April 2022.
Another area of interest to India is green hydrogen. India is well placed to become a global leader in green hydrogen. The Government policy on green hydrogen and ammonia encourages investments and can play an important role in decarbonisation efforts by reducing emissions from industrial, power and transport sectors. It is estimated that if India is successful in capitalising the green hydrogen, it can easily abate 400 million tonnes of CO2 by 2050.
The National Hydrogen Energy Mission demonstrates India’s ability to build capacity to become the world’s cheapest hydrogen producer by 2050. This will aid in the development of a set of equitable, positive and valuable future solutions. The Green Hydrogen Mission is expected to result in the generation 4.1 million tonnes of Green Hydrogen annually.
After over a century of petroleum dominance, the transportation sector is going through a radical transformation. New energy options comprising alternative fuel and electrification are at the forefront of this transformation. Most of the automobile OEMs across the globe are actively adapting to the rapid advancement in technology, alternative fuels, automation and digital solutions that create new mobility options and new business models.
While the technologies and fuel that will move people and goods in the future remain uncertain, transportation systems will be more integrated with renewable energy, smart electric grids, smart buildings and information ecosystems, allowing for greater opportunities to leverage these interconnections. Thus, opening a plethora of opportunities for players in the EV eco-system – OEMs, battery manufacturers, charging infrastructure and others.
To deliberate on the subject of positioning the country as a Global Manufacturing Hub for Renewable Energy, CII is organising a half day Conference on ‘India @ 2030: A Roadmap for AatmaNirbhar Bharat in RE’ on 14 July 2022.
To register for the event, please visit the link – https://bit.ly/3Rg6bi6