India’s energy policy represents an ambitious roadmap to achieve sustainable growth, reduce carbon emissions, and diversify its energy sources. As one of the world’s fastest-growing economies, India faces the twin challenges of meeting the rising energy demand and addressing environmental sustainability. To tackle this, India has set multiple ambitious goals within its energy policy, focusing on reducing carbon intensity, enhancing renewable energy capacity, promoting green hydrogen, increasing non-fossil fuel energy sources, improving energy efficiency, and strengthening governance mechanisms. This policy aligns with global climate commitments and supports India’s pledge to reach net-zero emissions by 2070 [1].
Reducing Carbon Intensity
One of the cornerstones of India’s energy policy is to lower carbon intensity by at least 45% by the end of this decade [2]. Reducing carbon intensity means producing less carbon dioxide per unit of GDP, which is crucial for sustainable growth. This commitment aligns with India’s Nationally Determined Contributions (NDCs) under the Paris Agreement, where India is working to cut greenhouse gas emissions without compromising economic growth. By prioritizing cleaner energy sources and efficient technologies, India is positioning itself as a leader in climate action among developing nations, balancing economic development and environmental responsibility.
Renewable Energy Goals
India’s energy policy prioritizes renewable energy as a critical component for achieving energy security and reducing dependency on fossil fuels. The country aims to install 500 gigawatts (GW) of renewable energy capacity by 2030, a target that is expected to significantly contribute to the energy mix [3]. This ambitious goal includes plans to establish 30 GW of offshore wind energy, which takes advantage of India’s vast coastline. Additionally, the creation of 50 solar parks with a combined capacity of 37.49 GW represents a focused approach to solar power expansion [4]. These initiatives underscore India’s commitment to renewable energy and demonstrate its leadership in the transition to sustainable power.
The renewable energy targets also include expanded investments and partnerships with global entities, facilitating technology transfer and funding for large-scale renewable projects. These investments will be crucial in the development of solar and wind infrastructure, which are vital to meeting the growing energy demands in an environmentally sustainable manner.
Green Hydrogen Production
Green hydrogen is another focus area in India’s energy policy, with a target of producing 5 million tonnes by 2030 [5]. Green hydrogen, produced through electrolysis powered by renewable energy, offers a cleaner alternative to traditional fuels and is considered pivotal for decarbonizing hard-to-abate sectors such as transportation, steel, and cement. India’s National Hydrogen Mission provides a framework to promote research, production, and infrastructure for green hydrogen. This initiative is not only expected to reduce carbon emissions but also position India as a global hub for green hydrogen production, potentially leading to economic opportunities through export to international markets.
Increasing Non-Fossil Fuel Capacity
In line with its commitment to sustainability, India’s energy policy mandates that at least 50% of its cumulative installed capacity for electric power be sourced from non-fossil fuel-based energy resources by 2030 [6]. By expanding the share of renewables, nuclear, and other non-fossil energy sources, India seeks to create a diversified and resilient energy portfolio. This approach reduces reliance on coal and oil, enhancing energy security and reducing the environmental footprint of energy production. The growth in non-fossil fuel capacity also represents India’s dedication to global climate goals, setting a benchmark for other emerging economies.
Energy Efficiency Initiatives
Improving energy efficiency is a central theme in India’s energy policy. By focusing on energy-efficient technologies and practices across demand sectors like industry, agriculture, and transportation, the policy aims to optimize energy use while reducing waste. The Bureau of Energy Efficiency (BEE) under the Ministry of Power has introduced several programs, including the Standards and Labeling program, which encourages consumers to adopt energy-efficient appliances [7]. Such measures not only reduce operational costs but also alleviate stress on the energy grid, making energy consumption more sustainable.
Energy efficiency is integral to every sector, as it supports the broader goals of reducing emissions, lowering costs, and enhancing productivity. The adoption of advanced technologies in industrial processes, building codes, and energy-efficient public infrastructure underscores India’s commitment to a sustainable energy future.
Governance and Regulatory Framework
Effective governance and regulatory frameworks are essential to the success of India’s energy policy. Governance in the energy sector includes critical interventions in pricing, regulatory standards, and market operations. The Electricity Act, 2003 (EA03), serves as the primary legislation guiding India’s power sector, addressing licensing, tariffs, and electricity distribution [8]. Amendments to the Act have focused on enhancing consumer rights, promoting renewable energy, and encouraging private sector participation. The government’s role in regulating prices and ensuring equitable access to energy is vital to maintaining public support for the energy transition.
Furthermore, governance initiatives like the Ministry of New and Renewable Energy’s (MNRE) National Bioenergy Programme and the Production Linked Incentive (PLI) Scheme reflect India’s strategic efforts to encourage innovation and manufacturing in clean energy sectors [9]. These schemes aim to boost domestic production, reduce import dependency, and provide incentives for companies investing in clean energy technologies, creating a robust ecosystem for sustainable energy development.
National Bioenergy Programme
Under the National Bioenergy Programme, India is exploring bioenergy as an alternative energy source to meet its ambitious renewable energy targets. Bioenergy, derived from organic materials such as agricultural waste, can provide a reliable source of power, especially in rural and semi-urban areas. The programme focuses on creating an infrastructure for biogas plants, biomass power, and waste-to-energy systems, which offer both economic and environmental benefits. By promoting bioenergy, India’s energy policy encourages rural development, job creation, and a reduction in the carbon footprint of energy generation, while also addressing waste management challenges.
Production Linked Incentive (PLI) Scheme
The PLI scheme is an important component of India’s energy policy that aims to attract investments in manufacturing solar photovoltaic (PV) modules, batteries, and other energy technologies within the country. By incentivizing companies to set up production facilities, the government is encouraging self-reliance in the renewable energy sector. This scheme not only promotes local manufacturing but also supports the “Make in India” initiative, strengthening India’s position as a global manufacturing hub for clean energy technology. The PLI scheme is expected to create numerous jobs and increase the share of domestically produced energy equipment in India’s renewable projects.
International Collaborations and Climate Goals
India’s energy policy aligns with its international climate commitments and fosters collaboration with countries around the world. The International Solar Alliance (ISA), co-founded by India, promotes solar energy adoption across tropical countries, enhancing cooperation and knowledge-sharing on solar technology [10]. Additionally, India’s involvement in the Mission Innovation initiative showcases its commitment to accelerating clean energy innovation. Through these collaborations, India aims to harness global expertise and investments, enhancing its ability to meet energy demands sustainably while contributing to global climate change mitigation efforts.
Challenges and the Road Ahead
While India’s energy policy is robust and ambitious, its implementation faces several challenges. Financing large-scale renewable projects, overcoming regulatory hurdles, and ensuring efficient energy distribution across regions are major obstacles. Additionally, India’s reliance on coal remains high, and transitioning to a predominantly renewable energy mix will require considerable investment and innovation.
To address these challenges, India is focusing on creating favorable policies that attract private sector participation, enhancing research and development in clean energy technologies, and building a skilled workforce. Moreover, with energy demand projected to grow significantly in the coming decades, India must ensure that its energy infrastructure is resilient and capable of integrating renewable sources effectively.
Conclusion
India’s energy policy is a dynamic blueprint aimed at transforming the country’s energy sector to meet the demands of a growing economy while prioritizing environmental sustainability. By setting ambitious goals for carbon intensity reduction, renewable energy, green hydrogen, and non-fossil fuel energy sources, India is taking significant strides toward a cleaner, more sustainable future. Energy efficiency and governance reforms are critical elements that will enable India to achieve these targets and pave the way for inclusive growth.
The strategic focus on renewable energy, bioenergy, and green hydrogen not only aligns with India’s climate goals but also strengthens its energy security and economic resilience. As India continues to progress on its energy transition journey, its energy policy serves as an exemplary model for other developing nations striving to balance economic development and environmental stewardship. Through continued investments, international partnerships, and technological innovation, India is well-positioned to become a global leader in sustainable energy.
