The Challenge to achieve Net Zero Emissions

The Challenge to achieve Net Zero Emissions

The developing nations of the world are driving a steady shift towards renewable energy, and India is one of the nations at the forefront of this movement. The Government of India is committed to increase the use of clean energy sources, especially after it ratified the Paris Agreement. It has set an ambitious target of achieving 450 GW of clean energy generation by the year 2030.

A data by CEA revealed that renewables accounted for 103 GW of India’s installed generating capacity of 391 GW as of October 2021. India’s installed renewable power generation capacity has increased steadily at a CAGR of 8.0 percent during the last decade. By 2030, India aspires to achieve 450 GW of renewable capacity, constituting 50% of the energy mix. According to Bloomberg New Energy Finance (BNEF) report, new investment made in the clean energy sector in the country likely to cross $15 billion in 2022.

Paradigm Shift in Energy Transition

The announcement made by Hon’ble Prime Minister Narendra Modi that India aspires to achieve Zero emissions by 2070 and meet 50% of its power demands from renewable sources by 2030 is a strong message to the world from a country whose 60 % of energy needs are fulfilled by thermal energy.  India’s statement is a testament to its commitment towards decarbonization and contributing in making the globe a cleaner and greener place.

The initiative also serves as a source of inspiration for many developing economies. However, for a country where fossil fuels have served as the main pillars of economic progress and modernization, offering an increasing number of Indians access to modern energy services, the path ahead is not easy.

India’s annual CO2 emissions have climbed to become the third highest in the world as a result of its rapid growth in fossil energy usage. The government’s statement that 450 GW of renewable energy will be installed by 2030 is in keeping with its pledge and will save billions of tonnes of CO2.

Growth drivers

Although the targets are formidable, however India has already overachieved its commitment made at COP 21- Paris Summit by already meeting 40% of its power capacity from non-fossil fuels- almost nine years ahead of its commitment and the share of solar and wind in India’s energy mix have grown phenomenally. Despite the challenges, there are some big positives that will help in driving renewable in India.

The decline in the cost of solar PV modules has reduced tariffs to an all-time low, thereby increasing competition amongst players. Capital costs are expected to decline further in the coming years as new technologies replace the old ones. The more cost-effective and efficient the technology, the better the chances of it driving mass production.

Solar power and onshore wind prices have plummeted 89 percent and 70 percent globally in the previous decade, respectively. Solar power tariffs in India reached an all-time low of Rs. 1.99 per unit in 2020 which would be great boost for the energy transition. In addition, deployment of low carbon technologies, swift digitization to optimize plants & grid, small scale generation across T& D network and democratization through empowered consumers are also playing a significant role in the energy transition.