Do you think India will meet 50 percent of its energy needs from renewable energy by 2030 ? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective ? Explain.

GS 3
Environment & Ecology
2022
15 Marks

Subject: Environment & Ecology

India's ambitious target of meeting 50% energy needs from renewable energy by 2030 represents a significant shift towards sustainable development and climate action. The country's recent achievements in renewable energy deployment and policy reforms present a promising trajectory.

Assessment of India's Renewable Energy Target

Favorable Factors:

  • Rapid Capacity Addition: India added 23.8 GW of new solar capacity in FY 2025, showing a remarkable 58.5% year-on-year growth, including 16.9 GW from utility-scale projects.
  • Investment Inflow: The sector attracted $19.98 billion in FDI from April 2020 to September 2024, demonstrating strong investor confidence.
  • Infrastructure Growth: Total renewable energy capacity reached 170 GW by March 2025, marking significant progress from 132 GW in October 2023.

Challenges:

  • Grid Integration: Managing intermittent renewable power supply requires significant grid infrastructure upgrades.
  • Storage Solutions: Need for advanced battery technology and storage systems.
  • Land Acquisition: Large-scale solar and wind projects face land availability constraints.

Role of Subsidy Shift in Achieving the Target

Impact of Subsidy Reforms:

  • Fossil Fuel Subsidy Reduction: India achieved an 85% decrease in fossil fuel subsidies from $25 billion to $3.5 billion (2013-2023).
  • Three-Pronged Strategy:
    • Systematic removal of subsidies.
    • Targeted subsidy allocation.
    • Resource reallocation to renewable sector.

Benefits of Subsidy Shift:

  • Market Competitiveness: Makes renewable energy more cost-competitive with conventional sources.
  • Investment Attraction: Creates favorable conditions for private sector participation.
  • Innovation Promotion: Encourages R&D in renewable technologies.

While challenges remain, India's renewable energy target appears achievable given the current growth rate, policy reforms, and successful implementation of programs like National Solar Mission and Green Energy Corridor. The shift in subsidies from fossil fuels to renewables has created a conducive environment for achieving the 2030 target, aligning with global climate commitments like the Paris Agreement.

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