RENEWABLE ENERGY

India's Path to a Sustainable Future

- Vaishali Basu Sharma

India has experienced significant economic growth in the past few decades, largely fuelled by fossil fuels, making it the world’s third largest carbon-emitter. To combat this carbon emission problem, the Indian government has set ambitious renewable energy targets, aiming to achieve 500 gigawatts (GW) of non-fossil fuel capacity by 2030, with 280 GW from solar energy and 140 GW from wind energy. As a global leader, India ranks fourth in renewable energy capacity and has witnessed a remarkable 36.5% compound annual growth rate (CAGR) in solar power over the past decade.

The transition to green energy continues to be a top priority for the government, both in terms of bandwidth and allocation of government resources. The country is investing in green hydrogen production, positioning itself as a global leader in this emerging sector, aligning with its commitment to achieving net-zero emissions by 2070. To support these efforts, the Indian government has introduced various policies and financial instruments, such as green bonds, green deposits, and mandatory ESG disclosures for top firms. The renewable energy sector has become a significant source of employment, creating over a million jobs in 2023, including nearly half a million in hydropower. Furthermore, India has been proactive in meeting its commitments under the Paris Agreement, being the first among G20 nations to do so.

In a major push for its flagship rooftop solar programme announced last year, the government has increased the budget for the Pradhan Mantri Surya Ghar Muft Bijli Yojana by 80% to ₹20,000 crore for FY26. The government plans to take rooftop solar installations to 10 million households by FY27 from the current 800,000. The scheme, launched in February 2024, aims to enable 10 million households to generate their own electricity with an outlay of ₹75,021 crore.