A green transition for India

• With COP29 ongoing amidst global uncertainties, India’s approach to decarbonisation is clear: it must balance rapid economic growth with equitable climate action. With power demand set to nearly double by 2032 and increasing climate vulnerabilities, India needs to adopt a green, resilient, and inclusive energy strategy. Below are seven fundamental shifts that could transform India’s energy landscape.

1. Decentralise Energy Systems:

• A shift from a centralised to a decentralised energy grid could revolutionise access to clean power across India. Distributed Renewable Energy (DRE) sources like rooftop solar can be the backbone of localised energy systems.
• For instance, India’s plan to solarise 10 million households could add 30 GW of clean energy. However, current rooftop solar prices remain high, especially for low-income households.

2. Prioritise Operational Expenditure over Capital Expenditure:

• Instead of focusing solely on upfront costs (capex), India’s energy transition should embrace operational expenditure (opex) models, which offer flexible, usage-based pricing. For example, utilities could set up community solar installations and charge users based on consumption.
• This shift could also promote services like district cooling systems and shared electric transport options, lowering entry costs and making clean energy accessible to a wider population.

3. Invest in Climate-Resilient Infrastructure:

• With over 80% of India residing in climate-vulnerable areas, building resilience in energy systems is essential. Climate-proofing infrastructure—such as flood-resistant grids and cyclone-resistant installations—can reduce future disruptions and economic losses. It’s vital for businesses and governments to conduct climate-risk assessments and invest in resilient systems, especially as extreme weather events become more common.

4. Strengthen Global Supply Chain Integration:

• Rather than adopting protectionist policies, India could integrate more deeply into global clean energy supply chains, particularly for solar photovoltaics and green hydrogen. Building strategic partnerships could position India as a valuable player in global clean energy markets.
• This approach not only enhances energy security but also fosters a cooperative, rules-based framework that contrasts with unilateral policies seen elsewhere.

5. Combine Decarbonisation with Digitalisation:

• India’s energy transformation is occurring alongside a digital revolution, with over 820 million internet users, a majority from rural areas. Smart technology integration—such as AI, smart meters, and data-driven energy management—can optimise energy distribution, reduce wastage, and enhance grid resilience.

6. Transition to a Circular Economy:

• Shifting from a linear to a circular economic model could reduce waste and improve mineral security. Solar panel waste alone could reach 600 kilotonnes by 2030. Recycling critical minerals from this waste—such as silicon, tellurium, and cadmium—can reduce resource dependency and environmental impact.

7. Center Energy Transition Policies Around People:

• Finally, a people-centric energy transition is essential. Financing must go beyond supporting large-scale developers and directly empower end-use consumers. Providing affordable loans or incentives for households to adopt electric vehicles, install rooftop solar, or use sustainable construction materials can amplify the impact of the clean energy transition. Aggregating individual demands into a larger portfolio can create a viable market for green consumer products.

Conclusion: A Decade of Transformation:

• The coming decade is pivotal for India’s energy future. Beyond simply changing energy sources, India’s transition is an opportunity to redefine its relationship with energy, economy, and the environment.
• By prioritising decentralisation, resilience, digital integration, and circular economies, India can create an inclusive, sustainable energy framework that benefits all stakeholders. This approach aligns with India’s climate goals and promises a resilient, people-centered green economy.