India’s energy sector, one of the most diversified in the world, plays a significant role in power generation. The sources utilized range from conventional such as coal, lignite, natural gas, oil, hydro and nuclear power to non-conventional ones such as wind, solar, agricultural and domestic waste. Despite being ranked highly in global renewable power capacity, India still struggles with below-average per capita electricity consumption. Consequently, the Government of India has been directing its focus towards attracting Exploration & Production (E&P) investment to enhance self-reliance in this sector.
The Importance of Energy Self-Reliance
Currently, India is not energy independent, spending over Rs 12 lakh crore on importing energy. By 2047, coinciding with the completion of 100 years of national independence, the government aims to secure energy independence. For this, India, a nation heavily dependent on imports for meeting its energy requirements, is exploring alternate sources, from renewable power to hydrogen, and shifting to electric vehicles.
Green Energy and India’s Progress in Ethanol Production
India, ranked fifth in the world for ethanol production, uses ethanol primarily for consumption but also blends it into petrol, akin to practices in Brazil. The adoption of green energy initiatives is fundamental to a sustainable economy. Notably, green energy focuses on clean energy make it accessible to all individuals and businesses.
Government Achievements in the Energy Sector
The Indian government has seen considerable success in this field. They achieved their target of supplying petrol mixed with 10% ethanol ahead of schedule in June 2022. This accomplishment propelled the advancement of another target: making petrol with 20% ethanol by 2025, five years than originally planned. Furthermore, under the “Saubhagya” initiative, they have electrified 2.82 crore households as of March 2021.
Energy Efficiency and Cost Savings
By June 2022, over 36.86 crore LED bulbs, 72.18 lakh LED tube lights, and 23.59 lakh energy-efficient fans were distributed across India, saving approximately 48,411 million kWh per year and Rs. 19,332 crores in cost savings. Concurrently, over 44 lakh smart meters have been deployed under the National Smart Grid Mission (NSGM).
Reduction in Solar Tariffs and Improved Ranking in Ease of Doing Business
With solar tariffs reduced significantly since FY15, India jumped to the 22nd position in 2019 from the 137th in 2014 on the World Bank’s Ease of Doing Business – “Getting Electricity” ranking.
Initiatives towards Self-reliance in the Energy Sector
Several initiatives have been undertaken to achieve self-reliance in the energy sector, including a Gas-Based Economy, Blending of Ethanol in Petrol, Prime Minister Ujjwala Yojna, Renewable Energy Initiatives, and National Hydrogen Mission.
Way Forward
To meet the escalating energy demand, India must exploit solar and wind energy, and especially green hydrogen energy, in its electricity system. Strengthening aspects like investment, infrastructure development, private-public partnership, green financing, and policy framework at both national and regional levels is crucial. Furthermore, with its vast potential for income, employment, and entrepreneurship generation, green energy offers numerous opportunities for investment and markets for new products and services. Therefore, a combined focus on green energy and energy-sector self-reliance should be India’s path forward.
