India’s Renewable Energy Transition and Future Plans

In recent years, India has made strides in its renewable energy sector. The government launched the PM-Surya Ghar – Muft Bijli Yojana in February 2024. This initiative aims to provide rooftop solar systems to 10 million households. The goal is to generate 300 kWh per month per household. This move is part of a broader strategy to increase the renewable energy share from 21 per cent in 2024 to 27 per cent by 2027. Solar photovoltaic (PV) technology is expected to lead this expansion.

PM-Surya Ghar – Muft Bijli Yojana

The PM-Surya Ghar scheme has a financial outlay of ₹700 billion. It offers up to 60 per cent capital subsidies to households. Distribution companies also receive incentives under this programme. The scheme is projected to add 30 GW of solar capacity to the grid. This initiative simplifies the process of obtaining electricity connections and installing solar plants.

National Electricity Plan

The National Electricity Plan (Transmission) was introduced in October 2024. It aims to facilitate the transmission of 500 GW of renewable capacity by 2030. The plan includes 47 GW of battery storage and 31 GW of pumped hydro storage. It also outlines infrastructure for transporting green hydrogen and ammonia to coastal manufacturing hubs.

Growth of Wind and Hydropower

Wind energy is expected to grow . From 2018 to 2024, it grew at a CAGR of 7 per cent. This is projected to increase to 11 per cent from 2025 to 2027. The government has approved ₹74.5 billion for offshore wind projects. Hydropower is also on the rise, with a projected growth rate of 7 per cent CAGR from 2025 to 2027.

Nuclear Energy Development

Nuclear power generation increased by 13 per cent in 2024. The government plans to triple its nuclear capacity by 2032. This will increase from 8.2 GW to 22.5 GW. New technologies like Pressurized Heavy Water Reactors (PHWRs) are being developed. The Bharat Small Modular Reactor (BSMR) is also in progress for localized power generation.

Coal and Thermal Power Overview

Despite the rapid growth of renewables, coal remains a dominant energy source. In 2024, coal accounted for 74 per cent of India’s power mix. This is expected to decline to 67 per cent by 2027. Coal-based power growth is slowing, projected at just 2 per cent CAGR from 2025 to 2027. Gas-fired power is also expanding, with a 6 per cent year-on-year growth in 2024.

Rising Electricity Demand

Electricity demand surged by 5.8 per cent year-on-year in 2024. This increase was driven by economic growth and extreme heatwaves. Peak demand hit a record 250 GW in May 2024. By 2030, peak demand is projected to exceed 400 GW. Non-fossil fuel sources are expected to contribute 65 per cent of this capacity.

Questions for UPSC:

1. Critically analyse the impact of government initiatives on India’s renewable energy sector.
2. Explain the significance of the National Electricity Plan in achieving renewable energy targets.
3. What are the challenges and opportunities in transitioning from coal to renewable energy sources in India?
4. With suitable examples, comment on the role of technology in enhancing energy efficiency in India.

Answer Hints:

1. Critically analyse the impact of government initiatives on India’s renewable energy sector.

1. The PM-Surya Ghar scheme aims to provide rooftop solar systems to 10 million households, increasing solar capacity.
2. Financial outlay of ₹700 billion with up to 60% capital subsidies encourages household adoption of renewable energy.
3. Streamlined processes for electricity connections and solar installations promote faster deployment and accessibility.
4. Projected growth of renewable energy share from 21% to 27% by 2027 marks the effectiveness of these initiatives.
5. Government support for wind, hydropower, and nuclear projects complements solar efforts, diversifying the energy mix.

2. Explain the significance of the National Electricity Plan in achieving renewable energy targets.

1. The plan aims to facilitate the transmission of 500 GW of renewable capacity by 2030, crucial for meeting energy demands.
2. Inclusion of 47 GW of battery storage enhances grid stability and supports intermittent renewable sources like solar and wind.
3. Infrastructure for green hydrogen and ammonia transport promotes innovative energy solutions and industrial decarbonization.
4. Streamlined transmission processes improve efficiency and reduce bottlenecks in renewable energy deployment.
5. Aligns with India’s commitments to international climate agreements, reinforcing its role as a leader in renewable energy transition.

3. What are the challenges and opportunities in transitioning from coal to renewable energy sources in India?

1. Challenge – Existing coal infrastructure and dependency, with coal accounting for 74% of the energy mix in 2024.
2. Opportunity – Growing demand for clean energy solutions aligns with global sustainability trends and local environmental needs.
3. Challenge – Initial high capital costs for renewable projects can deter investment without adequate subsidies and incentives.
4. Opportunity – Technological advancements in solar, wind, and energy storage can lower costs and improve efficiency over time.
5. Challenge – Policy and regulatory frameworks need to evolve to support a smooth transition and address stakeholder concerns.

4. With suitable examples, comment on the role of technology in enhancing energy efficiency in India.

1. Smart grid technologies improve electricity distribution and reduce losses, enhancing overall efficiency in energy management.
2. Solar photovoltaic (PV) advancements have led to lower costs and improved efficiency, making solar more accessible to households.
3. Battery storage solutions, like the 47 GW planned in the National Electricity Plan, support renewable integration and grid reliability.
4. Technologies like Pressurized Heavy Water Reactors (PHWRs) in nuclear energy enhance safety and efficiency in power generation.
5. Energy-efficient appliances and smart metering systems promote responsible energy consumption among consumers.