Renewables Take Centrestage But Fossils Linger

Even as the war in Ukraine and climate considerations spur acceleration towards cleaner sources of energy, India and countries around the world will have the challenge of striking that balance between climate considerations and energy security

- Arjun Yadav

LAST YEAR when we wrote the outlook for the energy sector, it was in the backdrop of the COP26 Summit in Glasgow, where India made a slew of climate pledges. From announcing 2070 as the net-zero year, a commitment to increase its non-fossil fuel capacity to 500 gigawatts (GW) and meeting 50 per cent of its energy needs from renewable sources by 2030, India's renewable energy industry had a lot of momentum.

In February 2022, when Russian President Vladimir Putin launched his offensive against Ukraine, the global energy markets jittered. Oil touched its highest level since 2008, gas prices soared, and both developed and emerging economies looked for cheaper sources of energy, such as coal.

Amid heatwave conditions in India during April-May 2022, the country went through a severe power crisis, highlighting its energy mix's limitations and dependence on coal. This power crisis came in as a reality check for the nation and showed that India still has a long way to go to 'phase down' coal despite making significant strides in renewable energy capacity additions in recent years.

The war in Ukraine and the subsequent energy crisis have forced countries to reconsider their energy policies and drive them to ensure energy security, self-sufficiency, and diversification of the energy mix through the transition to cleaner energy sources.

The International Energy Agency (IEA) sees global renewable power capacity to double over the next five years, and this new forecast is about 30 per cent higher than last year's. The global energy watchdog says that renewable power technologies have become more attractive since the war broke out in Eastern Europe.