PAYING FOR A CLEANER FUTURE

THE TRANSITION to renewable energy has been the hallmark of India's approach to tackling climate change in the last decade.

- Amit Kapoor & Meenakshi Ajith

Till 2022-23, India's primary energy mix favoured fossil fuels, with 84 per cent of it coming from coal, oil, and natural gas.

However, with the introduction of renewables, the composition of India's power mix changed significantly, with the share of non-fossil power capacity being 45.4 per cent as of May 2024. India added 13.5 GW of renewable energy capacity in 2023 alone, ranking fourth globally in installed renewable energy capacity, fourth in wind power capacity, and fifth in solar power capacity.

By 2070, India is seeking to triple its renewable energy capacity from its current 170 GW to 500 GW-an ambitious and yet critical target. This transition entails significant costs, not just in terms of capital investments but also in terms of technology, jobs, and other socio-economic aspects. India's Economic Survey this year acknowledged that the price of the energy transition will be too much for most nations, only to get worse going forward.

At the same time, the transition also brings significant opportunities beyond cost savings and environmental improvements. What are the costs of transitioning to this cleaner future, and how does it fit in with India's balanced approach to economic growth and building climate resilience? India is one of the fastest-growing economies, poised to become the third largest in the world, and yet our per capita income, a key indicator of economic prosperity, remains much lower compared to other developing bloc peers.