essay on green technology in india

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• Published: 07 January 2020

Renewable energy for sustainable development in India: current status, future prospects, challenges, employment, and investment opportunities

• Charles Rajesh Kumar. J   ORCID: orcid.org/0000-0003-2354-6463 1 &
• M. A. Majid 1  

Energy, Sustainability and Society volume  10 , Article number:  2 ( 2020 ) Cite this article

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The primary objective for deploying renewable energy in India is to advance economic development, improve energy security, improve access to energy, and mitigate climate change. Sustainable development is possible by use of sustainable energy and by ensuring access to affordable, reliable, sustainable, and modern energy for citizens. Strong government support and the increasingly opportune economic situation have pushed India to be one of the top leaders in the world’s most attractive renewable energy markets. The government has designed policies, programs, and a liberal environment to attract foreign investments to ramp up the country in the renewable energy market at a rapid rate. It is anticipated that the renewable energy sector can create a large number of domestic jobs over the following years. This paper aims to present significant achievements, prospects, projections, generation of electricity, as well as challenges and investment and employment opportunities due to the development of renewable energy in India. In this review, we have identified the various obstacles faced by the renewable sector. The recommendations based on the review outcomes will provide useful information for policymakers, innovators, project developers, investors, industries, associated stakeholders and departments, researchers, and scientists.

Introduction

The sources of electricity production such as coal, oil, and natural gas have contributed to one-third of global greenhouse gas emissions. It is essential to raise the standard of living by providing cleaner and more reliable electricity [ 1 ]. India has an increasing energy demand to fulfill the economic development plans that are being implemented. The provision of increasing quanta of energy is a vital pre-requisite for the economic growth of a country [ 2 ]. The National Electricity Plan [NEP] [ 3 ] framed by the Ministry of Power (MoP) has developed a 10-year detailed action plan with the objective to provide electricity across the country, and has prepared a further plan to ensure that power is supplied to the citizens efficiently and at a reasonable cost. According to the World Resource Institute Report 2017 [ 4 , 5 ], India is responsible for nearly 6.65% of total global carbon emissions, ranked fourth next to China (26.83%), the USA (14.36%), and the EU (9.66%). Climate change might also change the ecological balance in the world. Intended Nationally Determined Contributions (INDCs) have been submitted to the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement. The latter has hoped to achieve the goal of limiting the rise in global temperature to well below 2 °C [ 6 , 7 ]. According to a World Energy Council [ 8 ] prediction, global electricity demand will peak in 2030. India is one of the largest coal consumers in the world and imports costly fossil fuel [ 8 ]. Close to 74% of the energy demand is supplied by coal and oil. According to a report from the Center for monitoring Indian economy, the country imported 171 million tons of coal in 2013–2014, 215 million tons in 2014–2015, 207 million tons in 2015–2016, 195 million tons in 2016–2017, and 213 million tons in 2017–2018 [ 9 ]. Therefore, there is an urgent need to find alternate sources for generating electricity.

In this way, the country will have a rapid and global transition to renewable energy technologies to achieve sustainable growth and avoid catastrophic climate change. Renewable energy sources play a vital role in securing sustainable energy with lower emissions [ 10 ]. It is already accepted that renewable energy technologies might significantly cover the electricity demand and reduce emissions. In recent years, the country has developed a sustainable path for its energy supply. Awareness of saving energy has been promoted among citizens to increase the use of solar, wind, biomass, waste, and hydropower energies. It is evident that clean energy is less harmful and often cheaper. India is aiming to attain 175 GW of renewable energy which would consist of 100 GW from solar energy, 10 GW from bio-power, 60 GW from wind power, and 5 GW from small hydropower plants by the year 2022 [ 11 ]. Investors have promised to achieve more than 270 GW, which is significantly above the ambitious targets. The promises are as follows: 58 GW by foreign companies, 191 GW by private companies, 18 GW by private sectors, and 5 GW by the Indian Railways [ 12 ]. Recent estimates show that in 2047, solar potential will be more than 750 GW and wind potential will be 410 GW [ 13 , 14 ]. To reach the ambitious targets of generating 175 GW of renewable energy by 2022, it is essential that the government creates 330,000 new jobs and livelihood opportunities [ 15 , 16 ].

A mixture of push policies and pull mechanisms, accompanied by particular strategies should promote the development of renewable energy technologies. Advancement in technology, proper regulatory policies [ 17 ], tax deduction, and attempts in efficiency enhancement due to research and development (R&D) [ 18 ] are some of the pathways to conservation of energy and environment that should guarantee that renewable resource bases are used in a cost-effective and quick manner. Hence, strategies to promote investment opportunities in the renewable energy sector along with jobs for the unskilled workers, technicians, and contractors are discussed. This article also manifests technological and financial initiatives [ 19 ], policy and regulatory framework, as well as training and educational initiatives [ 20 , 21 ] launched by the government for the growth and development of renewable energy sources. The development of renewable technology has encountered explicit obstacles, and thus, there is a need to discuss these barriers. Additionally, it is also vital to discover possible solutions to overcome these barriers, and hence, proper recommendations have been suggested for the steady growth of renewable power [ 22 , 23 , 24 ]. Given the enormous potential of renewables in the country, coherent policy measures and an investor-friendly administration might be the key drivers for India to become a global leader in clean and green energy.

Projection of global primary energy consumption

An energy source is a necessary element of socio-economic development. The increasing economic growth of developing nations in the last decades has caused an accelerated increase in energy consumption. This trend is anticipated to grow [ 25 ]. A prediction of future power consumption is essential for the investigation of adequate environmental and economic policies [ 26 ]. Likewise, an outlook to future power consumption helps to determine future investments in renewable energy. Energy supply and security have not only increased the essential issues for the development of human society but also for their global political and economic patterns [ 27 ]. Hence, international comparisons are helpful to identify past, present, and future power consumption.

Table 1 shows the primary energy consumption of the world, based on the BP Energy Outlook 2018 reports. In 2016, India’s overall energy consumption was 724 million tons of oil equivalent (Mtoe) and is expected to rise to 1921 Mtoe by 2040 with an average growth rate of 4.2% per annum. Energy consumption of various major countries comprises commercially traded fuels and modern renewables used to produce power. In 2016, India was the fourth largest energy consumer in the world after China, the USA, and the Organization for economic co-operation and development (OECD) in Europe [ 29 ].

The projected estimation of global energy consumption demonstrates that energy consumption in India is continuously increasing and retains its position even in 2035/2040 [ 28 ]. The increase in India’s energy consumption will push the country’s share of global energy demand to 11% by 2040 from 5% in 2016. Emerging economies such as China, India, or Brazil have experienced a process of rapid industrialization, have increased their share in the global economy, and are exporting enormous volumes of manufactured products to developed countries. This shift of economic activities among nations has also had consequences concerning the country’s energy use [ 30 ].

Projected primary energy consumption in India

The size and growth of a country’s population significantly affects the demand for energy. With 1.368 billion citizens, India is ranked second, of the most populous countries as of January 2019 [ 31 ]. The yearly growth rate is 1.18% and represents almost 17.74% of the world’s population. The country is expected to have more than 1.383 billion, 1.512 billion, 1.605 billion, 1.658 billion people by the end of 2020, 2030, 2040, and 2050, respectively. Each year, India adds a higher number of people to the world than any other nation and the specific population of some of the states in India is equal to the population of many countries.

The growth of India’s energy consumption will be the fastest among all significant economies by 2040, with coal meeting most of this demand followed by renewable energy. Renewables became the second most significant source of domestic power production, overtaking gas and then oil, by 2020. The demand for renewables in India will have a tremendous growth of 256 Mtoe in 2040 from 17 Mtoe in 2016, with an annual increase of 12%, as shown in Table 2 .

Table 3 shows the primary energy consumption of renewables for the BRIC countries (Brazil, Russia, India, and China) from 2016 to 2040. India consumed around 17 Mtoe of renewable energy in 2016, and this will be 256 Mtoe in 2040. It is probable that India’s energy consumption will grow fastest among all major economies by 2040, with coal contributing most in meeting this demand followed by renewables. The percentage share of renewable consumption in 2016 was 2% and is predicted to increase by 13% by 2040.

How renewable energy sources contribute to the energy demand in India

Even though India has achieved a fast and remarkable economic growth, energy is still scarce. Strong economic growth in India is escalating the demand for energy, and more energy sources are required to cover this demand. At the same time, due to the increasing population and environmental deterioration, the country faces the challenge of sustainable development. The gap between demand and supply of power is expected to rise in the future [ 32 ]. Table 4 presents the power supply status of the country from 2009–2010 to 2018–2019 (until October 2018). In 2018, the energy demand was 1,212,134 GWh, and the availability was 1,203,567 GWh, i.e., a deficit of − 0.7% [ 33 ].

According to the Load generation and Balance Report (2016–2017) of the Central Electricity Authority of India (CEA), the electrical energy demand for 2021–2022 is anticipated to be at least 1915 terawatt hours (TWh), with a peak electric demand of 298 GW [ 34 ]. Increasing urbanization and rising income levels are responsible for an increased demand for electrical appliances, i.e., an increased demand for electricity in the residential sector. The increased demand in materials for buildings, transportation, capital goods, and infrastructure is driving the industrial demand for electricity. An increased mechanization and the shift to groundwater irrigation across the country is pushing the pumping and tractor demand in the agriculture sector, and hence the large diesel and electricity demand. The penetration of electric vehicles and the fuel switch to electric and induction cook stoves will drive the electricity demand in the other sectors shown in Table 5 .

According to the International Renewable Energy Agency (IRENA), a quarter of India’s energy demand can be met with renewable energy. The country could potentially increase its share of renewable power generation to over one-third by 2030 [ 35 ].

Table 6 presents the estimated contribution of renewable energy sources to the total energy demand. MoP along with CEA in its draft national electricity plan for 2016 anticipated that with 175 GW of installed capacity of renewable power by 2022, the expected electricity generation would be 327 billion units (BUs), which would contribute to 1611 BU energy requirements. This indicates that 20.3% of the energy requirements would be fulfilled by renewable energy by 2022 and 24.2% by 2027 [ 36 ]. Figure 1 shows the ambitious new target for the share of renewable energy in India’s electricity consumption set by MoP. As per the order of revised RPO (Renewable Purchase Obligations, legal act of June 2018), the country has a target of a 21% share of renewable energy in its total electricity consumption by March 2022. In 2014, the same goal was at 15% and increased to 21% by 2018. It is India’s goal to reach 40% renewable sources by 2030.

Target share of renewable energy in India’s power consumption

Estimated renewable energy potential in India

The estimated potential of wind power in the country during 1995 [ 37 ] was found to be 20,000 MW (20 GW), solar energy was 5 × 10 15 kWh/pa, bioenergy was 17,000 MW, bagasse cogeneration was 8000 MW, and small hydropower was 10,000 MW. For 2006, the renewable potential was estimated as 85,000 MW with wind 4500 MW, solar 35 MW, biomass/bioenergy 25,000 MW, and small hydropower of 15,000 MW [ 38 ]. According to the annual report of the Ministry of New and Renewable Energy (MNRE) for 2017–2018, the estimated potential of wind power was 302.251 GW (at 100-m mast height), of small hydropower 19.749 GW, biomass power 17.536 GW, bagasse cogeneration 5 GW, waste to energy (WTE) 2.554 GW, and solar 748.990 GW. The estimated total renewable potential amounted to 1096.080 GW [ 39 ] assuming 3% wasteland, which is shown in Table 7 . India is a tropical country and receives significant radiation, and hence the solar potential is very high [ 40 , 41 , 42 ].

Gross installed capacity of renewable energy in India

As of June 2018 reports, the country intends to reach 225 GW of renewable power capacity by 2022 exceeding the target of 175 GW pledged during the Paris Agreement. The sector is the fourth most attractive renewable energy market in the world. As in October 2018, India ranked fifth in installed renewable energy capacity [ 43 ].

Gross installed capacity of renewable energy—according to region

Table 8 lists the cumulative installed capacity of both conventional and renewable energy sources. The cumulative installed capacity of renewable sources as on the 31 st of December 2018 was 74081.66 MW. Renewable energy (small hydropower, wind, biomass, WTE, solar) accounted for an approximate 21% share of the cumulative installed power capacity, and the remaining 78.791% originated from other conventional sources (coal, gas diesel, nuclear, and large hydropower) [ 44 ]. The best regions for renewable energy are the southern states that have the highest solar irradiance and wind in the country. When renewable energy alone is considered for analysis, the Southern region covers 49.121% of the cumulative installed renewable capacity, followed by the Western region (29.742%), the Northern region (18.890%), the Eastern region (1.836%), the North-Easter region 0.394%, and the Islands (0.017%). As far as conventional energy is concerned, the Western region with 33.452% ranks first and is followed by the Northern region with 28.484%, the Southern region (24.967%), the Eastern region (11.716%), the Northern-Eastern (1.366%), and the Islands (0.015%).

Gross installed capacity of renewable energy—according to ownership

State government, central government, and private players drive the Indian energy sector. The private sector leads the way in renewable energy investment. Table 9 shows the installed gross renewable energy and conventional energy capacity (percentage)—ownership wise. It is evident from Fig. 2 that 95% of the installed renewable capacity derives from private companies, 2% from the central government, and 3% from the state government. The top private companies in the field of non-conventional energy generation are Tata Power Solar, Suzlon, and ReNew Power. Tata Power Solar System Limited are the most significant integrated solar power players in the country, Suzlon realizes wind energy projects, and ReNew Power Ventures operate with solar and wind power.

Gross renewable energy installed capacity (percentage)—Ownership wise as per the 31.12.2018 [ 43 ]

Gross installed capacity of renewable energy—state wise

Table 10 shows the installed capacity of cumulative renewable energy (state wise), out of the total installed capacity of 74,081.66 MW, where Karnataka ranks first with 12,953.24 MW (17.485%), Tamilnadu second with 11,934.38 MW (16%), Maharashtra third with 9283.78 MW (12.532%), Gujarat fourth with 10.641 MW (10.641%), and Rajasthan fifth with 7573.86 MW (10.224%). These five states cover almost 66.991% of the installed capacity of total renewable. Other prominent states are Andhra Pradesh (9.829%), Madhya Pradesh (5.819%), Telangana (5.137%), and Uttar Pradesh (3.879%). These nine states cover almost 91.655%.

Gross installed capacity of renewable energy—according to source

Under union budget of India 2018–2019, INR 3762 crore (USD 581.09 million), was allotted for grid-interactive renewable power schemes and projects. As per the 31.12.2018, the installed capacity of total renewable power (excluding large hydropower) in the country amounted to 74.08166 GW. Around 9.363 GW of solar energy, 1.766 GW of wind, 0.105 GW of small hydropower (SHP), and biomass power of 8.7 GW capacity were added in 2017–2018. Table 11 shows the installed capacity of renewable energy over the last 10 years until the 31.12.2018. Wind energy continues to dominate the countries renewable energy industry, accounting for over 47% of cumulative installed renewable capacity (35,138.15 MW), followed by solar power of 34% (25,212.26 MW), biomass power/cogeneration of 12% (9075.5 MW), and small hydropower of 6% (4517.45 MW). In the renewable energy country attractiveness index (RECAI) of 2018, India ranked in fourth position. The installed renewable energy production capacity has grown at an accelerated pace over the preceding few years, posting a CAGR of 19.78% between 2014 and 2018 [ 45 ] .

Estimation of the installed capacity of renewable energy

Table 12 gives the share of installed cumulative renewable energy capacity, in comparison with the installed conventional energy capacity. In 2022 and 2032, the installed renewable energy capacity will account for 32% and 35%, respectively [ 46 , 47 ]. The most significant renewable capacity expansion program in the world is being taken up by India. The government is preparing to boost the percentage of clean energy through a tremendous push in renewables, as discussed in the subsequent sections.

Gross electricity generation from renewable energy in India

The overall generation (including the generation from grid-connected renewable sources) in the country has grown exponentially. Between 2014–2015 and 2015–2016, it achieved 1110.458 BU and 1173.603 BU, respectively. The same was recorded with 1241.689 BU and 1306.614 BU during 2015–2016 and 1306.614 BU from 2016–2017 and 2017–2018, respectively. Figure 3 indicates that the annual renewable power production increased faster than the conventional power production. The rise accounted for 6.47% in 2015–2016 and 24.88% in 2017–2018, respectively. Table 13 compares the energy generation from traditional sources with that from renewable sources. Remarkably, the energy generation from conventional sources reached 811.143 BU and from renewable sources 9.860 BU in 2010 compared to 1.206.306 BU and 88.945 BU in 2017, respectively [ 48 ]. It is observed that the price of electricity production using renewable technologies is higher than that for conventional generation technologies, but is likely to fall with increasing experience in the techniques involved [ 49 ].

The annual growth in power generation as per the 30th of November 2018

Gross electricity generation from renewable energy—according to regions

Table 14 shows the gross electricity generation from renewable energy-region wise. It is noted that the highest renewable energy generation derives from the southern region, followed by the western part. As of November 2018, 50.33% of energy generation was obtained from the southern area and 29.37%, 18.05%, 2%, and 0.24% from Western, Northern, North-Eastern Areas, and the Island, respectively.

Gross electricity generation from renewable energy—according to states

Table 15 shows the gross electricity generation from renewable energy—region-wise. It is observed that the highest renewable energy generation was achieved from Karnataka (16.57%), Tamilnadu (15.82%), Andhra Pradesh (11.92%), and Gujarat (10.87%) as per November 2018. While adding four years from 2015–2016 to 2018–2019 Tamilnadu [ 50 ] remains in the first position followed by Karnataka, Maharashtra, Gujarat and Andhra Pradesh.

Gross electricity generation from renewable energy—according to sources

Table 16 shows the gross electricity generation from renewable energy—source-wise. It can be concluded from the table that the wind-based energy generation as per 2017–2018 is most prominent with 51.71%, followed by solar energy (25.40%), Bagasse (11.63%), small hydropower (7.55%), biomass (3.34%), and WTE (0.35%). There has been a constant increase in the generation of all renewable sources from 2014–2015 to date. Wind energy, as always, was the highest contributor to the total renewable power production. The percentage of solar energy produced in the overall renewable power production comes next to wind and is typically reduced during the monsoon months. The definite improvement in wind energy production can be associated with a “good” monsoon. Cyclonic action during these months also facilitates high-speed winds. Monsoon winds play a significant part in the uptick in wind power production, especially in the southern states of the country.

Estimation of gross electricity generation from renewable energy

Table 17 shows an estimation of gross electricity generation from renewable energy based on the 2015 report of the National Institution for Transforming India (NITI Aayog) [ 51 ]. It is predicted that the share of renewable power will be 10.2% by 2022, but renewable power technologies contributed a record of 13.4% to the cumulative power production in India as of the 31st of August 2018. The power ministry report shows that India generated 122.10 TWh and out of the total electricity produced, renewables generated 16.30 TWh as on the 31st of August 2018. According to the India Brand Equity Foundation report, it is anticipated that by the year 2040, around 49% of total electricity will be produced using renewable energy.

Current achievements in renewable energy 2017–2018

India cares for the planet and has taken a groundbreaking journey in renewable energy through the last 4 years [ 52 , 53 ]. A dedicated ministry along with financial and technical institutions have helped India in the promotion of renewable energy and diversification of its energy mix. The country is engaged in expanding the use of clean energy sources and has already undertaken several large-scale sustainable energy projects to ensure a massive growth of green energy.

1. India doubled its renewable power capacity in the last 4 years. The cumulative renewable power capacity in 2013–2014 reached 35,500 MW and rose to 70,000 MW in 2017–2018.

2. India stands in the fourth and sixth position regarding the cumulative installed capacity in the wind and solar sector, respectively. Furthermore, its cumulative installed renewable capacity stands in fifth position globally as of the 31st of December 2018.

3. As said above, the cumulative renewable energy capacity target for 2022 is given as 175 GW. For 2017–2018, the cumulative installed capacity amounted to 70 GW, the capacity under implementation is 15 GW and the tendered capacity was 25 GW. The target, the installed capacity, the capacity under implementation, and the tendered capacity are shown in Fig. 4 .

4. There is tremendous growth in solar power. The cumulative installed solar capacity increased by more than eight times in the last 4 years from 2.630 GW (2013–2014) to 22 GW (2017–2018). As of the 31st of December 2018, the installed capacity amounted to 25.2122 GW.

5. The renewable electricity generated in 2017–2018 was 101839 BUs.

6. The country published competitive bidding guidelines for the production of renewable power. It also discovered the lowest tariff and transparent bidding method and resulted in a notable decrease in per unit cost of renewable energy.

7. In 21 states, there are 41 solar parks with a cumulative capacity of more than 26,144 MW that have already been approved by the MNRE. The Kurnool solar park was set up with 1000 MW; and with 2000 MW the largest solar park of Pavagada (Karnataka) is currently under installation.

8. The target for solar power (ground mounted) for 2018–2019 is given as 10 GW, and solar power (Rooftop) as 1 GW.

9. MNRE doubled the target for solar parks (projects of 500 MW or more) from 20 to 40 GW.

10. The cumulative installed capacity of wind power increased by 1.6 times in the last 4 years. In 2013–2014, it amounted to 21 GW, from 2017 to 2018 it amounted to 34 GW, and as of 31st of December 2018, it reached 35.138 GW. This shows that achievements were completed in wind power use.

11. An offshore wind policy was announced. Thirty-four companies (most significant global and domestic wind power players) competed in the “expression of interest” (EoI) floated on the plan to set up India’s first mega offshore wind farm with a capacity of 1 GW.

12. 682 MW small hydropower projects were installed during the last 4 years along with 600 watermills (mechanical applications) and 132 projects still under development.

13. MNRE is implementing green energy corridors to expand the transmission system. 9400 km of green energy corridors are completed or under implementation. The cost spent on it was INR 10141 crore (101,410 Million INR = 1425.01 USD). Furthermore, the total capacity of 19,000 MVA substations is now planned to be complete by March 2020.

14. MNRE is setting up solar pumps (off-grid application), where 90% of pumps have been set up as of today and between 2014–2015 and 2017–2018. Solar street lights were more than doubled. Solar home lighting systems have been improved by around 1.5 times. More than 2,575,000 solar lamps have been distributed to students. The details are illustrated in Fig. 5 .

15. From 2014–2015 to 2017–2018, more than 2.5 lakh (0.25 million) biogas plants were set up for cooking in rural homes to enable families by providing them access to clean fuel.

16. New policy initiatives revised the tariff policy mandating purchase and generation obligations (RPO and RGO). Four wind and solar inter-state transmission were waived; charges were planned, the RPO trajectory for 2022 and renewable energy policy was finalized.

17. Expressions of interest (EoI) were invited for installing solar photovoltaic manufacturing capacities associated with the guaranteed off-take of 20 GW. EoI indicated 10 GW floating solar energy plants.

18. Policy for the solar-wind hybrid was announced. Tender for setting up 2 GW solar-wind hybrid systems in existing projects was invited.

19. To facilitate R&D in renewable power technology, a National lab policy on testing, standardization, and certification was announced by the MNRE.

20. The Surya Mitra program was conducted to train college graduates in the installation, commissioning, operations, and management of solar panels. The International Solar Alliance (ISA) headquarters in India (Gurgaon) will be a new commencement for solar energy improvement in India.

21. The renewable sector has become considerably more attractive for foreign and domestic investors, and the country expects to attract up to USD 80 billion in the next 4 years from 2018–2019 to 2021–2022.

22. The solar power capacity expanded by more than eight times from 2.63 GW in 2013–2014 to 22 GW in 2017–2018.

23. A bidding for 115 GW renewable energy projects up to March 2020 was announced.

24. The Bureau of Indian Standards (BIS) acting for system/components of solar PV was established.

25. To recognize and encourage innovative ideas in renewable energy sectors, the Government provides prizes and awards. Creative ideas/concepts should lead to prototype development. The Name of the award is “Abhinav Soch-Nayi Sambhawanaye,” which means Innovative ideas—New possibilities.

Renewable energy target, installed capacity, under implementation and tendered [ 52 ]

Off-grid solar applications [ 52 ]

Solar energy

Under the National Solar Mission, the MNRE has updated the objective of grid-connected solar power projects from 20 GW by the year 2021–2022 to 100 GW by the year 2021–2022. In 2008–2009, it reached just 6 MW. The “Made in India” initiative to promote domestic manufacturing supported this great height in solar installation capacity. Currently, India has the fifth highest solar installed capacity worldwide. By the 31st of December 2018, solar energy had achieved 25,212.26 MW against the target of 2022, and a further 22.8 GW of capacity has been tendered out or is under current implementation. MNRE is preparing to bid out the remaining solar energy capacity every year for the periods 2018–2019 and 2019–2020 so that bidding may contribute with 100 GW capacity additions by March 2020. In this way, 2 years for the completion of projects would remain. Tariffs will be determined through the competitive bidding process (reverse e-auction) to bring down tariffs significantly. The lowest solar tariff was identified to be INR 2.44 per kWh in July 2018. In 2010, solar tariffs amounted to INR 18 per kWh. Over 100,000 lakh (10,000 million) acres of land had been classified for several planned solar parks, out of which over 75,000 acres had been obtained. As of November 2018, 47 solar parks of a total capacity of 26,694 MW were established. The aggregate capacity of 4195 MW of solar projects has been commissioned inside various solar parks (floating solar power). Table 18 shows the capacity addition compared to the target. It indicates that capacity addition increased exponentially.

Wind energy

As of the 31st of December 2018, the total installed capacity of India amounted to 35,138.15 MW compared to a target of 60 GW by 2022. India is currently in fourth position in the world for installed capacity of wind power. Moreover, around 9.4 GW capacity has been tendered out or is under current implementation. The MNRE is preparing to bid out for A 10 GW wind energy capacity every year for 2018–2019 and 2019–2020, so that bidding will allow for 60 GW capacity additions by March 2020, giving the remaining two years for the accomplishment of the projects. The gross wind energy potential of the country now reaches 302 GW at a 100 m above-ground level. The tariff administration has been changed from feed-in-tariff (FiT) to the bidding method for capacity addition. On the 8th of December 2017, the ministry published guidelines for a tariff-based competitive bidding rule for the acquisition of energy from grid-connected wind energy projects. The developed transparent process of bidding lowered the tariff for wind power to its lowest level ever. The development of the wind industry has risen in a robust ecosystem ensuring project execution abilities and a manufacturing base. State-of-the-art technologies are now available for the production of wind turbines. All the major global players in wind power have their presence in India. More than 12 different companies manufacture more than 24 various models of wind turbines in India. India exports wind turbines and components to the USA, Europe, Australia, Brazil, and other Asian countries. Around 70–80% of the domestic production has been accomplished with strong domestic manufacturing companies. Table 19 lists the capacity addition compared to the target for the capacity addition. Furthermore, electricity generation from the wind-based capacity has improved, even though there was a slowdown of new capacity in the first half of 2018–2019 and 2017–2018.

The national energy storage mission—2018

The country is working toward a National Energy Storage Mission. A draft of the National Energy Storage Mission was proposed in February 2018 and initiated to develop a comprehensive policy and regulatory framework. During the last 4 years, projects included in R&D worth INR 115.8 million (USD 1.66 million) in the domain of energy storage have been launched, and a corpus of INR 48.2 million (USD 0.7 million) has been issued. India’s energy storage mission will provide an opportunity for globally competitive battery manufacturing. By increasing the battery manufacturing expertise and scaling up its national production capacity, the country can make a substantial economic contribution in this crucial sector. The mission aims to identify the cumulative battery requirements, total market size, imports, and domestic manufacturing. Table 20 presents the economic opportunity from battery manufacturing given by the National Institution for Transforming India, also called NITI Aayog, which provides relevant technical advice to central and state governments while designing strategic and long-term policies and programs for the Indian government.

Small hydropower—3-year action agenda—2017

Hydro projects are classified as large hydro, small hydro (2 to 25 MW), micro-hydro (up to 100 kW), and mini-hydropower (100 kW to 2 MW) projects. Whereas the estimated potential of SHP is 20 GW, the 2022 target for India in SHP is 5 GW. As of the 31st of December 2018, the country has achieved 4.5 GW and this production is constantly increasing. The objective, which was planned to be accomplished through infrastructure project grants and tariff support, was included in the NITI Aayog’s 3-year action agenda (2017–2018 to 2019–2020), which was published on the 1st of August 2017. MNRE is providing central financial assistance (CFA) to set up small/micro hydro projects both in the public and private sector. For the identification of new potential locations, surveys and comprehensive project reports are elaborated, and financial support for the renovation and modernization of old projects is provided. The Ministry has established a dedicated completely automatic supervisory control and data acquisition (SCADA)—based on a hydraulic turbine R&D laboratory at the Alternate Hydro Energy Center (AHEC) at IIT Roorkee. The establishment cost for the lab was INR 40 crore (400 million INR, 95.62 Million USD), and the laboratory will serve as a design and validation facility. It investigates hydro turbines and other hydro-mechanical devices adhering to national and international standards [ 54 , 55 ]. Table 21 shows the target and achievements from 2007–2008 to 2018–2019.

National policy regarding biofuels—2018

Modernization has generated an opportunity for a stable change in the use of bioenergy in India. MNRE amended the current policy for biomass in May 2018. The policy presents CFA for projects using biomass such as agriculture-based industrial residues, wood produced through energy plantations, bagasse, crop residues, wood waste generated from industrial operations, and weeds. Under the policy, CFA will be provided to the projects at the rate of INR 2.5 million (USD 35,477.7) per MW for bagasse cogeneration and INR 5 million (USD 70,955.5) per MW for non-bagasse cogeneration. The MNRE also announced a memorandum in November 2018 considering the continuation of the concessional customs duty certificate (CCDC) to set up projects for the production of energy using non-conventional materials such as bio-waste, agricultural, forestry, poultry litter, agro-industrial, industrial, municipal, and urban wastes. The government recently established the National policy on biofuels in August 2018. The MNRE invited an expression of interest (EOI) to estimate the potential of biomass energy and bagasse cogeneration in the country. A program to encourage the promotion of biomass-based cogeneration in sugar mills and other industries was also launched in May 2018. Table 22 shows how the biomass power target and achievements are expected to reach 10 GW of the target of 2022 before the end of 2019.

The new national biogas and organic manure program (NNBOMP)—2018

The National biogas and manure management programme (NBMMP) was launched in 2012–2013. The primary objective was to provide clean gaseous fuel for cooking, where the remaining slurry was organic bio-manure which is rich in nitrogen, phosphorus, and potassium. Further, 47.5 lakh (4.75 million) cumulative biogas plants were completed in 2014, and increased to 49.8 lakh (4.98 million). During 2017–2018, the target was to establish 1.10 lakh biogas plants (1.10 million), but resulted in 0.15 lakh (0.015 million). In this way, the cost of refilling the gas cylinders with liquefied petroleum gas (LPG) was greatly reduced. Likewise, tons of wood/trees were protected from being axed, as wood is traditionally used as a fuel in rural and semi-urban households. Biogas is a viable alternative to traditional cooking fuels. The scheme generated employment for almost 300 skilled laborers for setting up the biogas plants. By 30th of May 2018, the Ministry had issued guidelines for the implementation of the NNBOMP during the period 2017–2018 to 2019–2020 [ 56 ].

The off-grid and decentralized solar photovoltaic application program—2018

The program deals with the energy demand through the deployment of solar lanterns, solar streetlights, solar home lights, and solar pumps. The plan intended to reach 118 MWp of off-grid PV capacity by 2020. The sanctioning target proposed outlay was 50 MWp by 2017–2018 and 68 MWp by 2019–2020. The total estimated cost amounted to INR 1895 crore (18950 Million INR, 265.547 million USD), and the ministry wanted to support 637 crores (6370 million INR, 89.263 million USD) by its central finance assistance. Solar power plants with a 25 KWp size were promoted in those areas where grid power does not reach households or is not reliable. Public service institutions, schools, panchayats, hostels, as well as police stations will benefit from this scheme. Solar study lamps were also included as a component in the program. Thirty percent of financial assistance was provided to solar power plants. Every student should bear 15% of the lamp cost, and the ministry wanted to support the remaining 85%. As of October 2018, lantern and lamps of more than 40 Lakhs (4 million), home lights of 16.72 lakhs (1.672 million) number, street lights of 6.40 lakhs (0.64 million), solar pumps of 1.96 lakhs (0.196 million), and 187.99 MWp stand-alone devices had been installed [ 57 , 58 ].

Major government initiatives for renewable energy

Technological initiatives.

The Technology Development and Innovation Policy (TDIP) released on the 6th of October 2017 was endeavored to promote research, development, and demonstration (RD&D) in the renewable energy sector [ 59 ]. RD&D intended to evaluate resources, progress in technology, commercialization, and the presentation of renewable energy technologies across the country. It aimed to produce renewable power devices and systems domestically. The evaluation of standards and resources, processes, materials, components, products, services, and sub-systems was carried out through RD&D. A development of the market, efficiency improvements, cost reductions, and a promotion of commercialization (scalability and bankability) were achieved through RD&D. Likewise, the percentage of renewable energy in the total electricity mix made it self-sustainable, industrially competitive, and profitable through RD&D. RD&D also supported technology development and demonstration in wind, solar, wind-solar hybrid, biofuel, biogas, hydrogen fuel cells, and geothermal energies. RD&D supported the R&D units of educational institutions, industries, and non-government organizations (NGOs). Sharing expertise, information, as well as institutional mechanisms for collaboration was realized by use of the technology development program (TDP). The various people involved in this program were policymakers, industrial innovators, associated stakeholders and departments, researchers, and scientists. Renowned R&D centers in India are the National Institute of Solar Energy (NISE), Gurgaon, the National Institute of Bio-Energy (NIBE), Kapurthala, and the National Institute of Wind Energy (NIWE), Chennai. The TDP strategy encouraged the exploration of innovative approaches and possibilities to obtain long-term targets. Likewise, it efficiently supported the transformation of knowledge into technology through a well-established monitoring system for the development of renewable technology that meets the electricity needs of India. The research center of excellence approved the TDI projects, which were funded to strengthen R&D. Funds were provided for conducting training and workshops. The MNRE is now preparing a database of R&D accomplishments in the renewable energy sector.

The Impacting Research Innovation and Technology (IMPRINT) program seeks to develop engineering and technology (prototype/process development) on a national scale. IMPRINT is steered by the Indian Institute of Technologies (IITs) and Indian Institute of science (IISCs). The expansion covers all areas of engineering and technology including renewable technology. The ministry of human resource development (MHRD) finances up to 50% of the total cost of the project. The remaining costs of the project are financed by the ministry (MNRE) via the RD&D program for renewable projects. Currently (2018–2019), five projects are under implementation in the area of solar thermal systems, storage for SPV, biofuel, and hydrogen and fuel cells which are funded by the MNRE (36.9 million INR, 0.518426 Million USD) and IMPRINT. Development of domestic technology and quality control are promoted through lab policies that were published on the 7th of December 2017. Lab policies were implemented to test, standardize, and certify renewable energy products and projects. They supported the improvement of the reliability and quality of the projects. Furthermore, Indian test labs are strengthened in line with international standards and practices through well-established lab policies. From 2015, the MNRE has provided “The New and Renewable Energy Young Scientist’s Award” to researchers/scientists who demonstrate exceptional accomplishments in renewable R&D.

Financial initiatives

One hundred percent financial assistance is granted by the MNRE to the government and NGOs and 50% financial support to the industry. The policy framework was developed to guide the identification of the project, the formulation, monitoring appraisal, approval, and financing. Between 2012 and 2017, a 4467.8 million INR, 62.52 Million USD) support was granted by the MNRE. The MNRE wanted to double the budget for technology development efforts in renewable energy for the current three-year plan period. Table 23 shows that the government is spending more and more for the development of the renewable energy sector. Financial support was provided to R&D projects. Exceptional consideration was given to projects that worked under extreme and hazardous conditions. Furthermore, financial support was applied to organizing awareness programs, demonstrations, training, workshops, surveys, assessment studies, etc. Innovative approaches will be rewarded with cash prizes. The winners will be presented with a support mechanism for transforming their ideas and prototypes into marketable commodities such as start-ups for entrepreneur development. Innovative projects will be financed via start-up support mechanisms, which will include an investment contract with investors. The MNRE provides funds to proposals for investigating policies and performance analyses related to renewable energy.

Technology validation and demonstration projects and other innovative projects with regard to renewables received a financial assistance of 50% of the project cost. The CFA applied to partnerships with industry and private institutions including engineering colleges. Private academic institutions, accredited by a government accreditation body, were also eligible to receive a 50% support. The concerned industries and institutions should meet the remaining 50% expenditure. The MNRE allocated an INR 3762.50 crore (INR 37625 million, 528.634 million USD) for the grid interactive renewable sources and an INR 1036.50 crore (INR 10365 million, 145.629 million USD) for off-grid/distributed and decentralized renewable power for the year 2018–2019 [ 60 ]. The MNRE asked the Reserve Bank of India (RBI), attempting to build renewable power projects under “priority sector lending” (priority lending should be done for renewable energy projects and without any limit) and to eliminate the obstacles in the financing of renewable energy projects. In July 2018, the Ministry of Finance announced that it would impose a 25% safeguard duty on solar panels and modules imported from China and Malaysia for 1 year. The quantum of tax might be reduced to 20% for the next 6 months, and 15% for the following 6 months.

Policy and regulatory framework initiatives

The regulatory interventions for the development of renewable energy sources are (a) tariff determination, (b) defining RPO, (c) promoting grid connectivity, and (d) promoting the expansion of the market.

Tariff policy amendments—2018

On the 30th of May 2018, the MoP released draft amendments to the tariff policy. The objective of these policies was to promote electricity generation from renewables. MoP in consultation with MNRE announced the long-term trajectory for RPO, which is represented in Table 24 . The State Electricity Regulatory Commission (SERC) achieved a favorable and neutral/off-putting effect in the growth of the renewable power sector through their RPO regulations in consultation with the MNRE. On the 25th of May 2018, the MNRE created an RPO compliance cell to reach India’s solar and wind power goals. Due to the absence of implementation of RPO regulations, several states in India did not meet their specified RPO objectives. The cell will operate along with the Central Electricity Regulatory Commission (CERC) and SERCs to obtain monthly statements on RPO compliance. It will also take up non-compliance associated concerns with the relevant officials.

Repowering policy—2016

On the 09th of August 2016, India announced a “repowering policy” for wind energy projects. An about 27 GW turnaround was possible according to the policy. This policy supports the replacing of aging wind turbines with more modern and powerful units (fewer, larger, taller) to raise the level of electricity generation. This policy seeks to create a simplified framework and to promote an optimized use of wind power resources. It is mandatory because the up to the year 2000 installed wind turbines were below 500 kW in sites where high wind potential might be achieved. It will be possible to obtain 3000 MW from the same location once replacements are in place. The policy was initially applied for the one MW installed capacity of wind turbines, and the MNRE will extend the repowering policy to other projects in the future based on experience. Repowering projects were implemented by the respective state nodal agencies/organizations that were involved in wind energy promotion in their states. The policy provided an exception from the Power Purchase Agreement (PPA) for wind farms/turbines undergoing repowering because they could not fulfill the requirements according to the PPA during repowering. The repowering projects may avail accelerated depreciation (AD) benefit or generation-based incentive (GBI) due to the conditions appropriate to new wind energy projects [ 61 ].

The wind-solar hybrid policy—2018

On the 14th of May 2018, the MNRE announced a national wind-solar hybrid policy. This policy supported new projects (large grid-connected wind-solar photovoltaic hybrid systems) and the hybridization of the already available projects. These projects tried to achieve an optimal and efficient use of transmission infrastructure and land. Better grid stability was achieved and the variability in renewable power generation was reduced. The best part of the policy intervention was that which supported the hybridization of existing plants. The tariff-based transparent bidding process was included in the policy. Regulatory authorities should formulate the necessary standards and regulations for hybrid systems. The policy also highlighted a battery storage in hybrid projects for output optimization and variability reduction [ 62 ].

The national offshore wind energy policy—2015

The National Offshore Wind Policy was released in October 2015. On the 19th of June 2018, the MNRE announced a medium-term target of 5 GW by 2022 and a long-term target of 30 GW by 2030. The MNRE called expressions of Interest (EoI) for the first 1 GW of offshore wind (the last date was 08.06.2018). The EoI site is located in Pipavav port at the Gulf of Khambhat at a distance of 23 km facilitating offshore wind (FOWIND) where the consortium deployed light detection and ranging (LiDAR) in November 2017). Pipavav port is situated off the coast of Gujarat. The MNRE had planned to install more such equipment in the states of Tamil Nadu and Gujarat. On the 14 th of December 2018, the MNRE, through the National Institute of Wind Energy (NIWE), called tender for offshore environmental impact assessment studies at intended LIDAR points at the Gulf of Mannar, off the coast of Tamil Nadu for offshore wind measurement. The timeline for initiatives was to firstly add 500 MW by 2022, 2 to 2.5 GW by 2027, and eventually reaching 5 GW between 2028 and 2032. Even though the installation of large wind power turbines in open seas is a challenging task, the government has endeavored to promote this offshore sector. Offshore wind energy would add its contribution to the already existing renewable energy mix for India [ 63 ] .

The feed-in tariff policy—2018

On the 28th of January 2016, the revised tariff policy was notified following the Electricity Act. On the 30th May 2018, the amendment in tariff policy was released. The intentions of this tariff policy are (a) an inexpensive and competitive electricity rate for the consumers; (b) to attract investment and financial viability; (c) to ensure that the perceptions of regulatory risks decrease through predictability, consistency, and transparency of policy measures; (d) development in quality of supply, increased operational efficiency, and improved competition; (e) increase the production of electricity from wind, solar, biomass, and small hydro; (f) peaking reserves that are acceptable in quantity or consistently good in quality or performance of grid operation where variable renewable energy source integration is provided through the promotion of hydroelectric power generation, including pumped storage projects (PSP); (g) to achieve better consumer services through efficient and reliable electricity infrastructure; (h) to supply sufficient and uninterrupted electricity to every level of consumers; and (i) to create adequate capacity, reserves in the production, transmission, and distribution that is sufficient for the reliability of supply of power to customers [ 64 ].

Training and educational initiatives

The MHRD has developed strong renewable energy education and training systems. The National Council for Vocational Training (NCVT) develops course modules, and a Modular Employable Skilling program (MES) in its regular 2-year syllabus to include SPV lighting systems, solar thermal systems, SHP, and provides the certificate for seven trades after the completion of a 2-year course. The seven trades are plumber, fitter, carpenter, welder, machinist, and electrician. The Ministry of Skill Development and Entrepreneurship (MSDE) worked out a national skill development policy in 2015. They provide regular training programs to create various job roles in renewable energy along with the MNRE support through a skill council for green jobs (SCGJ), the National Occupational Standards (NOS), and the Qualification Pack (QP). The SCGJ is promoted by the Confederation of Indian Industry (CII) and the MNRE. The industry partner for the SCGJ is ReNew Power [ 65 , 66 ].

The global status of India in renewable energy

Table 25 shows the RECAI (Renewable Energy Country Attractiveness Index) report of 40 countries. This report is based on the attractiveness of renewable energy investment and deployment opportunities. RECAI is based on macro vitals such as economic stability, investment climate, energy imperatives such as security and supply, clean energy gap, and affordability. It also includes policy enablement such as political stability and support for renewables. Its emphasis lies on project delivery parameters such as energy market access, infrastructure, and distributed generation, finance, cost and availability, and transaction liquidity. Technology potentials such as natural resources, power take-off attractiveness, potential support, technology maturity, and forecast growth are taken into consideration for ranking. India has moved to the fourth position of the RECAI-2018. Indian solar installations (new large-scale and rooftop solar capacities) in the calendar year 2017 increased exponentially with the addition of 9629 MW, whereas in 2016 it was 4313 MW. The warning of solar import tariffs and conflicts between developers and distribution firms are growing investor concerns [ 67 ]. Figure 6 shows the details of the installed capacity of global renewable energy in 2016 and 2017. Globally, 2017 GW renewable energy was installed in 2016, and in 2017, it increased to 2195 GW. Table 26 shows the total capacity addition of top countries until 2017. The country ranked fifth in renewable power capacity (including hydro energy), renewable power capacity (not including hydro energy) in fourth position, concentrating solar thermal power (CSP) and wind power were also in fourth position [ 68 ].

Globally installed capacity of renewable energy in 2017—Global 2018 status report with regard to renewables [ 68 ]

The investment opportunities in renewable energy in India

The investments into renewable energy in India increased by 22% in the first half of 2018 compared to 2017, while the investments in China dropped by 15% during the same period, according to a statement by the Bloomberg New Energy Finance (BNEF), which is shown in Table 27 [ 69 , 70 ]. At this rate, India is expected to overtake China and become the most significant growth market for renewable energy by the end of 2020. The country is eyeing pole position for transformation in renewable energy by reaching 175 GW by 2020. To achieve this target, it is quickly ramping up investments in this sector. The country added more renewable capacity than conventional capacity in 2018 when compared to 2017. India hosted the ISA first official summit on the 11.03.2018 for 121 countries. This will provide a standard platform to work toward the ambitious targets for renewable energy. The summit will emphasize India’s dedication to meet global engagements in a time-bound method. The country is also constructing many sizeable solar power parks comparable to, but larger than, those in China. Half of the earth’s ten biggest solar parks under development are in India.

In 2014, the world largest solar park was the Topaz solar farm in California with a 550 MW facility. In 2015, another operator in California, Solar Star, edged its capacity up to 579 MW. By 2016, India’s Kamuthi Solar Power Project in Tamil Nadu was on top with 648 MW of capacity (set up by the Adani Green Energy, part of the Adani Group, in Tamil Nadu). As of February 2017, the Longyangxia Dam Solar Park in China was the new leader, with 850 MW of capacity [ 71 ]. Currently, there are 600 MW operating units and 1400 MW units under construction. The Shakti Sthala solar park was inaugurated on 01.03.2018 in Pavagada (Karnataka, India) which is expected to become the globe’s most significant solar park when it accomplishes its full potential of 2 GW. Another large solar park with 1.5 GW is scheduled to be built in the Kadappa region [ 72 ]. The progress in solar power is remarkable and demonstrates real clean energy development on the ground.

The Kurnool ultra-mega solar park generated 800 million units (MU) of energy in October 2018 and saved over 700,000 tons of CO 2 . Rainwater was harvested using a reservoir that helps in cleaning solar panels and supplying water. The country is making remarkable progress in solar energy. The Kamuthi solar farm is cleaned each day by a robotic system. As the Indian economy expands, electricity consumption is forecasted to reach 15,280 TWh in 2040. With the government’s intent, green energy objectives, i.e., the renewable sector, grow considerably in an attractive manner with both foreign and domestic investors. It is anticipated to attract investments of up to USD 80 billion in the subsequent 4 years. The government of India has raised its 175 GW target to 225 GW of renewable energy capacity by 2022. The competitive benefit is that the country has sun exposure possible throughout the year and has an enormous hydropower potential. India was also listed fourth in the EY renewable energy country attractive index 2018. Sixty solar cities will be built in India as a section of MNRE’s “Solar cities” program.

In a regular auction, reduction in tariffs cost of the projects are the competitive benefits in the country. India accounts for about 4% of the total global electricity generation capacity and has the fourth highest installed capacity of wind energy and the third highest installed capacity of CSP. The solar installation in India erected during 2015–2016, 2016–2017, 2017–2018, and 2018–2019 was 3.01 GW, 5.52 GW, 9.36 GW, and 6.53 GW, respectively. The country aims to add 8.5 GW during 2019–2020. Due to its advantageous location in the solar belt (400 South to 400 North), the country is one of the largest beneficiaries of solar energy with relatively ample availability. An increase in the installed capacity of solar power is anticipated to exceed the installed capacity of wind energy, approaching 100 GW by 2022 from its current levels of 25.21226 GW as of December 2018. Fast falling prices have made Solar PV the biggest market for new investments. Under the Union Budget 2018–2019, a zero import tax on parts used in manufacturing solar panels was launched to provide an advantage to domestic solar panel companies [ 73 ].

Foreign direct investment (FDI) inflows in the renewable energy sector of India between April 2000 and June 2018 amounted to USD 6.84 billion according to the report of the department of industrial policy and promotion (DIPP). The DIPP was renamed (gazette notification 27.01.2019) the Department for the Promotion of Industry and Internal Trade (DPIIT). It is responsible for the development of domestic trade, retail trade, trader’s welfare including their employees as well as concerns associated with activities in facilitating and supporting business and startups. Since 2014, more than 42 billion USD have been invested in India’s renewable power sector. India reached US$ 7.4 billion in investments in the first half of 2018. Between April 2015 and June 2018, the country received USD 3.2 billion FDI in the renewable sector. The year-wise inflows expanded from USD 776 million in 2015–2016 to USD 783 million in 2016–2017 and USD 1204 million in 2017–2018. Between January to March of 2018, the INR 452 crore (4520 Million INR, 63.3389 million USD) of the FDI had already come in. The country is contributing with financial and promotional incentives that include a capital subsidy, accelerated depreciation (AD), waiver of inter-state transmission charges and losses, viability gap funding (VGF), and FDI up to 100% under the automated track.

The DIPP/DPIIT compiles and manages the data of the FDI equity inflow received in India [ 74 ]. The FDI equity inflow between April 2015 and June 2018 in the renewable sector is illustrated in Fig. 7 . It shows that the 2018–2019 3 months’ FDI equity inflow is half of that of the entire one of 2017–2018. It is evident from the figure that India has well-established FDI equity inflows. The significant FDI investments in the renewable energy sectors are shown in Table 28 . The collaboration between the Asian development bank and Renew Power Ventures private limited with 44.69 million USD ranked first followed by AIRRO Singapore with Diligent power with FDI equity inflow of 44.69 USD million.

The FDI equity inflow received between April 2015 and June 2018 in the renewable energy sector [ 73 ]

Strategies to promote investments

Strategies to promote investments (including FDI) by investors in the renewable sector:

Decrease constraints on FDI; provide open, transparent, and dependable conditions for foreign and domestic firms; and include ease of doing business, access to imports, comparatively flexible labor markets, and safeguard of intellectual property rights.

Establish an investment promotion agency (IPA) that targets suitable foreign investors and connects them as a catalyst with the domestic economy. Assist the IPA to present top-notch infrastructure and immediate access to skilled workers, technicians, engineers, and managers that might be needed to attract such investors. Furthermore, it should involve an after-investment care, recognizing the demonstration effects from satisfied investors, the potential for reinvestments, and the potential for cluster-development due to follow-up investments.

It is essential to consider the targeted sector (wind, solar, SPH or biomass, respectively) for which investments are required.

Establish the infrastructure needed for a quality investor, including adequate close-by transport facilities (airport, ports), a sufficient and steady supply of energy, a provision of a sufficiently skilled workforce, the facilities for the vocational training of specialized operators, ideally designed in collaboration with the investor.

Policy and other support mechanisms such as Power Purchase Agreements (PPA) play an influential role in underpinning returns and restricting uncertainties for project developers, indirectly supporting the availability of investment. Investors in renewable energy projects have historically relied on government policies to give them confidence about the costs necessary for electricity produced—and therefore for project revenues. Reassurance of future power costs for project developers is secured by signing a PPA with either a utility or an essential corporate buyer of electricity.

FiT have been the most conventional approach around the globe over the last decade to stimulate investments in renewable power projects. Set by the government concerned, they lay down an electricity tariff that developers of qualifying new projects might anticipate to receive for the resulting electricity over a long interval (15–20 years). These present investors in the tax equity of renewable power projects with a credit that they can manage to offset the tax burden outside in their businesses.

Table 29 presents the 2018 renewable energy investment report, source-wise, by the significant players in renewables according to the report of the Bloomberg New Energy Finance Report 2018. As per this report, global investment in renewable energy was USD of 279.8 billion in 2017. The top ten in the total global investments are China (126.1 $BN), the USA (40.5 $BN), Japan (13.4 $BN), India (10.9 $BN), Germany (10.4 $BN), Australia (8.5 $BN), UK (7.6 $BN), Brazil (6.0 $BN), Mexico (6.0 $BN), and Sweden (3.7 $BN) [ 75 ]. This achievement was possible since those countries have well-established strategies for promoting investments [ 76 , 77 ].

The appropriate objectives for renewable power expansion and investments are closely related to the Nationally Determined Contributions (NDCs) objectives, the implementation of the NDC, on the road to achieving Paris promises, policy competence, policy reliability, market absorption capacity, and nationwide investment circumstances that are the real purposes for renewable power expansion, which is a significant factor for the investment strategies, as is shown in Table 30 .

The demand for investments for building a Paris-compatible and climate-resilient energy support remains high, particularly in emerging nations. Future investments in energy grids and energy flexibility are of particular significance. The strategies and the comparison chart between China, India, and the USA are presented in Table 31 .

Table 32 shows France in the first place due to overall favorable conditions for renewables, heading the G20 in investment attractiveness of renewables. Germany drops back one spot due to a decline in the quality of the global policy environment for renewables and some insufficiencies in the policy design, as does the UK. Overall, with four European countries on top of the list, Europe, however, directs the way in providing attractive conditions for investing in renewables. Despite high scores for various nations, no single government is yet close to growing a role model. All countries still have significant room for increasing investment demands to deploy renewables at the scale required to reach the Paris objectives. The table shown is based on the Paris compatible long-term vision, the policy environment for renewable energy, the conditions for system integration, the market absorption capacity, and general investment conditions. India moved from the 11th position to the 9th position in overall investments between 2017 and 2018.

A Paris compatible long-term vision includes a de-carbonization plan for the power system, the renewable power ambition, the coal and oil decrease, and the reliability of renewables policies. Direct support policies include medium-term certainty of policy signals, streamlined administrative procedures, ensuring project realization, facilitating the use of produced electricity. Conditions for system integration include system integration-grid codes, system integration-storage promotion, and demand-side management policies. A market absorption capacity includes a prior experience with renewable technologies, a current activity with renewable installations, and a presence of major renewable energy companies. General investment conditions include non-financial determinants, depth of the financial sector as well, as an inflation forecast.

Employment opportunities for citizens in renewable energy in India

Global employment scenario.

According to the 2018 Annual review of the IRENA [ 78 ], global renewable energy employment touched 10.3 million jobs in 2017, an improvement of 5.3% compared with the quantity published in 2016. Many socio-economic advantages derive from renewable power, but employment continues to be exceptionally centralized in a handful of countries, with China, Brazil, the USA, India, Germany, and Japan in the lead. In solar PV employment (3.4 million jobs), China is the leader (65% of PV Jobs) which is followed by Japan, USA, India, Bangladesh, Malaysia, Germany, Philippines, and Turkey. In biofuels employment (1.9 million jobs), Brazil is the leader (41% of PV Jobs) followed by the USA, Colombia, Indonesia, Thailand, Malaysia, China, and India. In wind employment (1.1 million jobs), China is the leader (44% of PV Jobs) followed by Germany, USA, India, UK, Brazil, Denmark, Netherlands, France, and Spain.

Table 33 shows global renewable energy employment in the corresponding technology branches. As in past years, China maintained the most notable number of people employed (3880 million jobs) estimating for 43% of the globe’s total which is shown in Fig. 8 . In India, new solar installations touched a record of 9.6 GW in 2017, efficiently increasing the total installed capacity. The employment in solar PV improved by 36% and reached 164,400 jobs, of which 92,400 represented on-grid use. IRENA determines that the building and installation covered 46% of these jobs, with operations and maintenance (O&M) representing 35% and 19%, individually. India does not produce solar PV because it could be imported from China, which is inexpensive. The market share of domestic companies (Indian supplier to renewable projects) declined from 13% in 2014–2015 to 7% in 2017–2018. If India starts the manufacturing base, more citizens will get jobs in the manufacturing field. India had the world’s fifth most significant additions of 4.1 GW to wind capacity in 2017 and the fourth largest cumulative capacity in 2018. IRENA predicts that jobs in the wind sector stood at 60,500.

Renewable energy employment in selected countries [ 79 ]

The jobs in renewables are categorized into technological development, installation/de-installation, operation, and maintenance. Tables 34 , 35 , 36 , and 37 show the wind industry, solar energy, biomass, and small hydro-related jobs in project development, component manufacturing, construction, operations, and education, training, and research. As technology quickly evolves, workers in all areas need to update their skills through continuing training/education or job training, and in several cases could benefit from professional certification. The advantages of moving to renewable energy are evident, and for this reason, the governments are responding positively toward the transformation to clean energy. Renewable energy can be described as the country’s next employment boom. Renewable energy job opportunities can transform rural economy [ 79 , 80 ]. The renewable energy sector might help to reduce poverty by creating better employment. For example, wind power is looking for specialists in manufacturing, project development, and construction and turbine installation as well as financial services, transportation and logistics, and maintenance and operations.

The government is building more renewable energy power plants that will require a workforce. The increasing investments in the renewable energy sector have the potential to provide more jobs than any other fossil fuel industry. Local businesses and renewable sectors will benefit from this change, as income will increase significantly. Many jobs in this sector will contribute to fixed salaries, healthcare benefits, and skill-building opportunities for unskilled and semi-skilled workers. A range of skilled and unskilled jobs are included in all renewable energy technologies, even though most of the positions in the renewable energy industry demand a skilled workforce. The renewable sector employs semi-skilled and unskilled labor in the construction, operations, and maintenance after proper training. Unskilled labor is employed as truck drivers, guards, cleaning, and maintenance. Semi-skilled labor is used to take regular readings from displays. A lack of consistent data on the potential employment impact of renewables expansion makes it particularly hard to assess the quantity of skilled, semi-skilled, and unskilled personnel that might be needed.

Key findings in renewable energy employment

The findings comprise (a) that the majority of employment in the renewable sector is contract based, and that employees do not benefit from permanent jobs or security. (b) Continuous work in the industry has the potential to decrease poverty. (c) Most poor citizens encounter obstacles to entry-level training and the employment market due to lack of awareness about the jobs and the requirements. (d) Few renewable programs incorporate developing ownership opportunities for the citizens and the incorporation of women in the sector. (e) The inadequacy of data makes it challenging to build relationships between employment in renewable energy and poverty mitigation.

Recommendations for renewable energy employment

When building the capacity, focus on poor people and individuals to empower them with training in operation and maintenance.

Develop and offer training programs for citizens with minimal education and training, who do not fit current programs, which restrict them from working in renewable areas.

Include women in the renewable workforce by providing localized training.

Establish connections between training institutes and renewable power companies to guarantee that (a) trained workers are placed in appropriate positions during and after the completion of the training program and (b) training programs match the requirements of the renewable sector.

Poverty impact assessments might be embedded in program design to know how programs motivate poverty reduction, whether and how they influence the community.

Allow people to have a sense of ownership in renewable projects because this could contribute to the growth of the sector.

The details of the job being offered (part time, full time, contract-based), the levels of required skills for the job (skilled, semi-skilled and unskilled), the socio-economic status of the employee data need to be collected for further analysis.

Conduct investigations, assisted by field surveys, to learn about the influence of renewable energy jobs on poverty mitigation and differences in the standard of living.

Challenges faced by renewable energy in India

The MNRE has been taking dedicated measures for improving the renewable sector, and its efforts have been satisfactory in recognizing various obstacles.

Policy and regulatory obstacles

A comprehensive policy statement (regulatory framework) is not available in the renewable sector. When there is a requirement to promote the growth of particular renewable energy technologies, policies might be declared that do not match with the plans for the development of renewable energy.

The regulatory framework and procedures are different for every state because they define the respective RPOs (Renewable Purchase Obligations) and this creates a higher risk of investments in this sector. Additionally, the policies are applicable for just 5 years, and the generated risk for investments in this sector is apparent. The biomass sector does not have an established framework.

Incentive accelerated depreciation (AD) is provided to wind developers and is evident in developing India’s wind-producing capacity. Wind projects installed more than 10 years ago show that they are not optimally maintained. Many owners of the asset have built with little motivation for tax benefits only. The policy framework does not require the maintenance of the wind projects after the tax advantages have been claimed. There is no control over the equipment suppliers because they undertake all wind power plant development activities such as commissioning, operation, and maintenance. Suppliers make the buyers pay a premium and increase the equipment cost, which brings burden to the buyer.

Furthermore, ready-made projects are sold to buyers. The buyers are susceptible to this trap to save income tax. Foreign investors hesitate to invest because they are exempted from the income tax.

Every state has different regulatory policy and framework definitions of an RPO. The RPO percentage specified in the regulatory framework for various renewable sources is not precise.

RPO allows the SERCs and certain private firms to procure only a part of their power demands from renewable sources.

RPO is not imposed on open access (OA) and captive consumers in all states except three.

RPO targets and obligations are not clear, and the RPO compliance cell has just started on 22.05.2018 to collect the monthly reports on compliance and deal with non-compliance issues with appropriate authorities.

Penalty mechanisms are not specified and only two states in India (Maharashtra and Rajasthan) have some form of penalty mechanisms.

The parameter to determine the tariff is not transparent in the regulatory framework and many SRECs have established a tariff for limited periods. The FiT is valid for only 5 years, and this affects the bankability of the project.

Many SERCs have not decided on adopting the CERC tariff that is mentioned in CERCs regulations that deal with terms and conditions for tariff determinations. The SERCs have considered the plant load factor (PLF) because it varies across regions and locations as well as particular technology. The current framework does not fit to these issues.

Third party sale (TPS) is not allowed because renewable generators are not allowed to sell power to commercial consumers. They have to sell only to industrial consumers. The industrial consumers have a low tariff and commercial consumers have a high tariff, and SRCS do not allow OA. This stops the profit for the developers and investors.

Institutional obstacles

Institutes, agencies stakeholders who work under the conditions of the MNRE show poor inter-institutional coordination. The progress in renewable energy development is limited by this lack of cooperation, coordination, and delays. The delay in implementing policies due to poor coordination, decrease the interest of investors to invest in this sector.

The single window project approval and clearance system is not very useful and not stable because it delays the receiving of clearances for the projects ends in the levy of a penalty on the project developer.

Pre-feasibility reports prepared by concerned states have some deficiency, and this may affect the small developers, i.e., the local developers, who are willing to execute renewable projects.

The workforce in institutes, agencies, and ministries is not sufficient in numbers.

Proper or well-established research centers are not available for the development of renewable infrastructure.

Customer care centers to guide developers regarding renewable projects are not available.

Standards and quality control orders have been issued recently in 2018 and 2019 only, and there are insufficient institutions and laboratories to give standards/certification and validate the quality and suitability of using renewable technology.

Financial and fiscal obstacles

There are a few budgetary constraints such as fund allocation, and budgets that are not released on time to fulfill the requirement of developing the renewable sector.

The initial unit capital costs of renewable projects are very high compared to fossil fuels, and this leads to financing challenges and initial burden.

There are uncertainties related to the assessment of resources, lack of technology awareness, and high-risk perceptions which lead to financial barriers for the developers.

The subsidies and incentives are not transparent, and the ministry might reconsider subsidies for renewable energy because there was a sharp fall in tariffs in 2018.

Power purchase agreements (PPA) signed between the power purchaser and power generators on pre-determined fixed tariffs are higher than the current bids (Economic survey 2017–2018 and union budget on the 01.02.2019). For example, solar power tariff dropped to 2.44 INR (0. 04 USD) per unit in May 2017, wind power INR 3.46 per unit in February 2017, and 2.64 INR per unit in October 2017.

Investors feel that there is a risk in the renewable sector as this sector has lower gross returns even though these returns are relatively high within the market standards.

There are not many developers who are interested in renewable projects. While newly established developers (small and local developers) do not have much of an institutional track record or financial input, which are needed to develop the project (high capital cost). Even moneylenders consider it risky and are not ready to provide funding. Moneylenders look exclusively for contractors who have much experience in construction, well-established suppliers with proven equipment and operators who have more experience.

If the performance of renewable projects, which show low-performance, faces financial obstacles, they risks the lack of funding of renewable projects.

Financial institutions such as government banks or private banks do not have much understanding or expertise in renewable energy projects, and this imposes financial barriers to the projects.

Delay in payment by the SERCs to the developers imposes debt burden on the small and local developers because moneylenders always work with credit enhancement mechanisms or guarantee bonds signed between moneylenders and the developers.

Market obstacles

Subsidies are adequately provided to conventional fossil fuels, sending the wrong impression that power from conventional fuels is of a higher priority than that from renewables (unfair structure of subsidies)

There are four renewable markets in India, the government market (providing budgetary support to projects and purchase the output of the project), the government-driven market (provide budgetary support or fiscal incentives to promote renewable energy), the loan market (taking loan to finance renewable based applications), and the cash market (buying renewable-based applications to meet personal energy needs by individuals). There is an inadequacy in promoting the loan market and cash market in India.

The biomass market is facing a demand-supply gap which results in a continuous and dramatic increase in biomass prices because the biomass supply is unreliable (and, as there is no organized market for fuel), and the price fluctuations are very high. The type of biomass is not the same in all the states of India, and therefore demand and price elasticity is high for biomass.

Renewable power was calculated based on cost-plus methods (adding direct material cost, direct labor cost, and product overhead cost). This does not include environmental cost and shields the ecological benefits of clean and green energy.

There is an inadequate evacuation infrastructure and insufficient integration of the grid, which affects the renewable projects. SERCs are not able to use all generated power to meet the needs because of the non-availability of a proper evacuation infrastructure. This has an impact on the project, and the SERCs are forced to buy expensive power from neighbor states to fulfill needs.

Extending transmission lines is not possible/not economical for small size projects, and the seasonality of generation from such projects affect the market.

There are few limitations in overall transmission plans, distribution CapEx plans, and distribution licenses for renewable power. Power evacuation infrastructure for renewable energy is not included in the plans.

Even though there is an increase in capacity for the commercially deployed renewable energy technology, there is no decline in capital cost. This cost of power also remains high. The capital cost quoted by the developers and providers of equipment is too high due to exports of machinery, inadequate built up capacity, and cartelization of equipment suppliers (suppliers join together to control prices and limit competition).

There is no adequate supply of land, for wind, solar, and solar thermal power plants, which lead to poor capacity addition in many states.

Technological obstacles

Every installation of a renewable project contributes to complex risk challenges from environmental uncertainties, natural disasters, planning, equipment failure, and profit loss.

MNRE issued the standardization of renewable energy projects policy on the 11th of December 2017 (testing, standardization, and certification). They are still at an elementary level as compared to international practices. Quality assurance processes are still under starting conditions. Each success in renewable energy is based on concrete action plans for standards, testing and certification of performance.

The quality and reliability of manufactured components, imported equipment, and subsystems is essential, and hence quality infrastructure should be established. There is no clear document related to testing laboratories, referral institutes, review mechanism, inspection, and monitoring.

There are not many R&D centers for renewables. Methods to reduce the subsidies and invest in R&D lagging; manufacturing facilities are just replicating the already available technologies. The country is dependent on international suppliers for equipment and technology. Spare parts are not manufactured locally and hence they are scarce.

Awareness, education, and training obstacles

There is an unavailability of appropriately skilled human resources in the renewable energy sector. Furthermore, it faces an acute workforce shortage.

After installation of renewable project/applications by the suppliers, there is no proper follow-up or assistance for the workers in the project to perform maintenance. Likewise, there are not enough trained and skilled persons for demonstrating, training, operation, and maintenance of the plant.

There is inadequate knowledge in renewables, and no awareness programs are available to the general public. The lack of awareness about the technologies is a significant obstacle in acquiring vast land for constructing the renewable plant. Moreover, people using agriculture lands are not prepared to give their land to construct power plants because most Indians cultivate plants.

The renewable sector depends on the climate, and this varying climate also imposes less popularity of renewables among the people.

The per capita income is low, and the people consider that the cost of renewables might be high and they might not be able to use renewables.

The storage system increases the cost of renewables, and people believe it too costly and are not ready to use them.

The environmental benefits of renewable technologies are not clearly understood by the people and negative perceptions are making renewable technologies less prevalent among them.

Environmental obstacles

A single wind turbine does not occupy much space, but many turbines are placed five to ten rotor diameters from each other, and this occupies more area, which include roads and transmission lines.

In the field of offshore wind, the turbines and blades are bigger than onshore wind turbines, and they require a substantial amount of space. Offshore installations affect ocean activities (fishing, sand extraction, gravel extraction, oil extraction, gas extraction, aquaculture, and navigation). Furthermore, they affect fish and other marine wildlife.

Wind turbines influence wildlife (birds and bats) because of the collisions with them and due to air pressure changes caused by wind turbines and habitat disruption. Making wind turbines motionless during times of low wind can protect birds and bats but is not practiced.

Sound (aerodynamic, mechanical) and visual impacts are associated with wind turbines. There is poor practice by the wind turbine developers regarding public concerns. Furthermore, there are imperfections in surfaces and sound—absorbent material which decrease the noise from turbines. The shadow flicker effect is not taken as severe environmental impact by the developers.

Sometimes wind turbine material production, transportation of materials, on-site construction, assembling, operation, maintenance, dismantlement, and decommissioning may be associated with global warming, and there is a lag in this consideration.

Large utility-scale solar plants require vast lands that increase the risk of land degradation and loss of habitat.

The PV cell manufacturing process includes hazardous chemicals such as 1-1-1 Trichloroethene, HCL, H 2 SO 4 , N 2 , NF, and acetone. Workers face risks resulting from inhaling silicon dust. The manufacturing wastes are not disposed of properly. Proper precautions during usage of thin-film PV cells, which contain cadmium—telluride, gallium arsenide, and copper-indium-gallium-diselenide are missing. These materials create severe public health threats and environmental threats.

Hydroelectric power turbine blades kill aquatic ecosystems (fish and other organisms). Moreover, algae and other aquatic weeds are not controlled through manual harvesting or by introducing fish that can eat these plants.

Discussion and recommendations based on the research

Policy and regulation advancements.

The MNRE should provide a comprehensive action plan or policy for the promotion of the renewable sector in its regulatory framework for renewables energy. The action plan can be prepared in consultation with SERCs of the country within a fixed timeframe and execution of the policy/action plan.

The central and state government should include a “Must run status” in their policy and follow it strictly to make use of renewable power.

A national merit order list for renewable electricity generation will reduce power cost for the consumers. Such a merit order list will help in ranking sources of renewable energy in an ascending order of price and will provide power at a lower cost to each distribution company (DISCOM). The MNRE should include that principle in its framework and ensure that SERCs includes it in their regulatory framework as well.

SERCs might be allowed to remove policies and regulatory uncertainty surrounding renewable energy. SERCs might be allowed to identify the thrust areas of their renewable energy development.

There should be strong initiatives from municipality (local level) approvals for renewable energy-based projects.

Higher market penetration is conceivable only if their suitable codes and standards are adopted and implemented. MNRE should guide minimum performance standards, which incorporate reliability, durability, and performance.

A well-established renewable energy certificates (REC) policy might contribute to an efficient funding mechanism for renewable energy projects. It is necessary for the government to look at developing the REC ecosystem.

The regulatory administration around the RPO needs to be upgraded with a more efficient “carrot and stick” mechanism for obligated entities. A regulatory mechanism that both remunerations compliance and penalizes for non-compliance may likely produce better results.

RECs in India should only be traded on exchange. Over-the-counter (OTC) or off-exchange trading will potentially allow greater participation in the market. A REC forward curve will provide further price determination to the market participants.

The policymakers should look at developing and building the REC market.

Most states have defined RPO targets. Still, due to the absence of implemented RPO regulations and the inadequacy of penalties when obligations are not satisfied, several of the state DISCOMs are not complying completely with their RPO targets. It is necessary that all states adhere to the RPO targets set by respective SERCs.

The government should address the issues such as DISCOM financials, must-run status, problems of transmission and evacuation, on-time payments and payment guarantees, and deemed generation benefits.

Proper incentives should be devised to support utilities to obtain power over and above the RPO mandated by the SERC.

The tariff orders/FiTs must be consistent and not restricted for a few years.

Transmission requirements

The developers are worried that transmission facilities are not keeping pace with the power generation. Bays at the nearest substations are occupied, and transmission lines are already carrying their full capacity. This is due to the lack of coordination between MNRE and the Power Grid Corporation of India (PGCIL) and CEA. Solar Corporation of India (SECI) is holding auctions for both wind and solar projects without making sure that enough evacuation facilities are available. There is an urgent need to make evacuation plans.

The solution is to develop numerous substations and transmission lines, but the process will take considerably longer time than the currently under-construction projects take to get finished.

In 2017–2018, transmission lines were installed under the green energy corridor project by the PGCIL, with 1900 circuit km targeted in 2018–2019. The implementation of the green energy corridor project explicitly meant to connect renewable energy plants to the national grid. The budget allocation of INR 6 billion for 2018–2019 should be increased to higher values.

The mismatch between MNRE and PGCIL, which are responsible for inter-state transmission, should be rectified.

State transmission units (STUs) are responsible for the transmission inside the states, and their fund requirements to cover the evacuation and transmission infrastructure for renewable energy should be fulfilled. Moreover, STUs should be penalized if they fail to fulfill their responsibilities.

The coordination and consultation between the developers (the nodal agency responsible for the development of renewable energy) and STUs should be healthy.

Financing the renewable sector

The government should provide enough budget for the clean energy sector. China’s annual budget for renewables is 128 times higher than India’s. In 2017, China spent USD 126.6 billion (INR 9 lakh crore) compared to India’s USD 10.9 billion (INR 75500 crore). In 2018, budget allocations for grid interactive wind and solar have increased but it is not sufficient to meet the renewable target.

The government should concentrate on R&D and provide a surplus fund for R&D. In 2017, the budget allotted was an INR 445 crore, which was reduced to an INR 272.85 crore in 2016. In 2017–2018, the initial allocation was an INR 144 crore that was reduced to an INR 81 crore during the revised estimates. Even the reduced amounts could not be fully used, there is an urgent demand for regular monitoring of R&D and the budget allocation.

The Goods and Service Tax (GST) that was introduced in 2017 worsened the industry performance and has led to an increase in costs and poses a threat to the viability of the ongoing projects, ultimately hampering the target achievement. These GST issues need to be addressed.

Including the renewable sector as a priority sector would increase the availability of credit and lead to a more substantial participation by commercial banks.

Mandating the provident funds and insurance companies to invest the fixed percentage of their portfolio into the renewable energy sector.

Banks should allow an interest rebate on housing loans if the owner is installing renewable applications such as solar lights, solar water heaters, and PV panels in his house. This will encourage people to use renewable energy. Furthermore, income tax rebates also can be given to individuals if they are implementing renewable energy applications.

Improvement in manufacturing/technology

The country should move to domestic manufacturing. It imports 90% of its solar cell and module requirements from Malaysia, China, and Taiwan, so it is essential to build a robust domestic manufacturing basis.

India will provide “safeguard duty” for merely 2 years, and this is not adequate to build a strong manufacturing basis that can compete with the global market. Moreover, safeguard duty would work only if India had a larger existing domestic manufacturing base.

The government should reconsider the safeguard duty. Many foreign companies desiring to set up joint ventures in India provide only a lukewarm response because the given order in its current form presents inadequate safeguards.

There are incremental developments in technology at regular periods, which need capital, and the country should discover a way to handle these factors.

To make use of the vast estimated renewable potential in India, the R&D capability should be upgraded to solve critical problems in the clean energy sector.

A comprehensive policy for manufacturing should be established. This would support capital cost reduction and be marketed on a global scale.

The country should initiate an industry-academia partnership, which might promote innovative R&D and support leading-edge clean power solutions to protect the globe for future generations.

Encourage the transfer of ideas between industry, academia, and policymakers from around the world to develop accelerated adoption of renewable power.

Awareness about renewables

Social recognition of renewable energy is still not very promising in urban India. Awareness is the crucial factor for the uniform and broad use of renewable energy. Information about renewable technology and their environmental benefits should reach society.

The government should regularly organize awareness programs throughout the country, especially in villages and remote locations such as the islands.

The government should open more educational/research organizations, which will help in spreading knowledge of renewable technology in society.

People should regularly be trained with regard to new techniques that would be beneficial for the community.

Sufficient agencies should be available to sell renewable products and serve for technical support during installation and maintenance.

Development of the capabilities of unskilled and semiskilled workers and policy interventions are required related to employment opportunities.

An increase in the number of qualified/trained personnel might immediately support the process of installations of renewables.

Renewable energy employers prefer to train employees they recruit because they understand that education institutes fail to give the needed and appropriate skills. The training institutes should rectify this issue. Severe trained human resources shortages should be eliminated.

Upgrading the ability of the existing workforce and training of new professionals is essential to achieve the renewable goal.

Hybrid utilization of renewables

The country should focus on hybrid power projects for an effective use of transmission infrastructure and land.

India should consider battery storage in hybrid projects, which support optimizing the production and the power at competitive prices as well as a decrease of variability.

Formulate mandatory standards and regulations for hybrid systems, which are lagging in the newly announced policies (wind-solar hybrid policy on 14.05.2018).

The hybridization of two or more renewable systems along with the conventional power source battery storage can increase the performance of renewable technologies.

Issues related to sizing and storage capacity should be considered because they are key to the economic viability of the system.

Fiscal and financial incentives available for hybrid projects should be increased.

The renewable sector suffers notable obstacles. Some of them are inherent in every renewable technology; others are the outcome of a skewed regulative structure and marketplace. The absence of comprehensive policies and regulation frameworks prevent the adoption of renewable technologies. The renewable energy market requires explicit policies and legal procedures to enhance the attention of investors. There is a delay in the authorization of private sector projects because of a lack of clear policies. The country should take measures to attract private investors. Inadequate technology and the absence of infrastructure required to establish renewable technologies should be overcome by R&D. The government should allow more funds to support research and innovation activities in this sector. There are insufficiently competent personnel to train, demonstrate, maintain, and operate renewable energy structures and therefore, the institutions should be proactive in preparing the workforce. Imported equipment is costly compared to that of locally manufactured; therefore, generation of renewable energy becomes expensive and even unaffordable. Hence, to decrease the cost of renewable products, the country should become involve in the manufacturing of renewable products. Another significant infrastructural obstacle to the development of renewable energy technologies is unreliable connectivity to the grid. As a consequence, many investors lose their faith in renewable energy technologies and are not ready to invest in them for fear of failing. India should work on transmission and evacuation plans.

Inadequate servicing and maintenance of facilities and low reliability in technology decreases customer trust in some renewable energy technologies and hence prevent their selection. Adequate skills to repair/service the spare parts/equipment are required to avoid equipment failures that halt the supply of energy. Awareness of renewable energy among communities should be fostered, and a significant focus on their socio-cultural practices should be considered. Governments should support investments in the expansion of renewable energy to speed up the commercialization of such technologies. The Indian government should declare a well-established fiscal assistance plan, such as the provision of credit, deduction on loans, and tariffs. The government should improve regulations making obligations under power purchase agreements (PPAs) statutorily binding to guarantee that all power DISCOMs have PPAs to cover a hundred percent of their RPO obligation. To accomplish a reliable system, it is strongly suggested that renewables must be used in a hybrid configuration of two or more resources along with conventional source and storage devices. Regulatory authorities should formulate the necessary standards and regulations for hybrid systems. Making investments economically possible with effective policies and tax incentives will result in social benefits above and beyond the economic advantages.

Availability of data and materials

Not applicable.

Abbreviations

Accelerated depreciation

Billion units

Central Electricity Authority of India

Central electricity regulatory commission

Central financial assistance

Expression of interest

Foreign direct investment

Feed-in-tariff

Ministry of new and renewable energy

Research and development

Renewable purchase obligations

State electricity regulatory

Small hydropower

Terawatt hours

Waste to energy

Chr.Von Zabeltitz (1994) Effective use of renewable energies for greenhouse heating. Renewable Energy 5:479-485.

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The authors gratefully acknowledge the support provided by the Research Consultancy Institute (RCI) and the department of Electrical and Computer Engineering of Effat University, Saudi Arabia.

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Kumar. J, C.R., Majid, M.A. Renewable energy for sustainable development in India: current status, future prospects, challenges, employment, and investment opportunities. Energ Sustain Soc 10 , 2 (2020). https://doi.org/10.1186/s13705-019-0232-1

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India’s clean energy transition is rapidly underway, benefiting the entire world

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IEA (2022), India’s clean energy transition is rapidly underway, benefiting the entire world , IEA, Paris https://www.iea.org/commentaries/india-s-clean-energy-transition-is-rapidly-underway-benefiting-the-entire-world

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This commentary was first published by The Times of India .

India’s announcement that it aims to reach net zero emissions by 2070 and to meet fifty percent of its electricity requirements from renewable energy sources by 2030 is a hugely significant moment for the global fight against climate change. India is pioneering a new model of economic development that could avoid the carbon-intensive approaches that many countries have pursued in the past – and provide a blueprint for other developing economies.

The scale of transformation in India is stunning. Its economic growth has been among the highest in the world over the past two decades, lifting of millions of people out of poverty. Every year, India adds a city the size of London to its urban population, involving vast construction of new buildings, factories and transportation networks. Coal and oil have so far served as bedrocks of India’s industrial growth and modernisation, giving a rising number of Indian people access to modern energy services. This includes adding new electricity connections for 50 million citizens each year over the past decade. 

The rapid growth in fossil energy consumption has also meant India’s annual CO 2 emissions have risen to become the third highest in the world. However, India’s CO 2 emissions per person put it near the bottom of the world’s emitters, and they are lower still if you consider historical emissions per person. The same is true of energy consumption: the average household in India consumes a tenth as much electricity as the average household in the United States.  

India’s sheer size and its huge scope for growth means that its energy demand is set to grow by more than that of any other country in the coming decades. In a pathway to net zero emissions by 2070, we estimate that most of the growth in energy demand this decade would already have to be met with low-carbon energy sources. It therefore makes sense that Prime Minister Narendra Modi has announced more ambitious targets for 2030, including installing 500 gigawatts of renewable energy capacity, reducing the emissions intensity of its economy by 45%, and reducing a billion tonnes of CO 2 . 

These targets are formidable, but the good news is that the clean energy transition in India is already well underway. It has 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. Owing to technological developments, steady policy support and a vibrant private sector solar power plants are cheaper to build than coal ones. Renewable electricity is growing at a faster rate in India than any other major economy, with new capacity additions on track to double by 2026. The country is also one of the world’s largest producers of modern bioenergy and has big ambitions to scale up its use across the economy. The IEA expects India to overtake Canada and China in the next few years to become the third largest ethanol market worldwide after the United States and Brazil. 

However, even as it sets its sights on net zero, India faces a number of pressing near-term challenges. The sharp increase in commodity prices has made energy less affordable, and tight markets are increasing energy security risks for the world’s third largest energy importer. There is still a lack of reliable electricity supply for many consumers. Continued reliance on traditional fuels for cooking causes unnecessary harm to many people’s health. Financially ailing electricity distribution companies are impeding the urgent transformation of the sector. And high levels of pollution have left Indian cities with some of the poorest air quality in the world.

India already has a numerous policy measures in place that – if fully implemented – could address some of these challenges by accelerating the shift to cleaner and more efficient technologies. Subsidies for petrol and diesel were removed in the early 2010s, and subsidies for electric vehicles were introduced in 2019. India’s robust energy efficiency programme has been successful in reducing energy use and emissions from buildings, transport and major industries. Government efforts to provide millions of households with fuel gas for cooking and heating are enabling a steady transition away from the use of traditional biomass such as burning wood. India is also laying the groundwork to scale up important emerging technologies such as hydrogen, battery storage, and low-carbon steel, cement and fertilisers. 

A transition to clean energy is a huge economic opportunity. India is particularly well placed to become a global leader in renewable batteries and green hydrogen. These and other low-carbon technologies could create a market worth up to $80 billion in India by 2030. Support from the international community is essential to help shift India’s development onto a low-carbon path. To reach net zero emissions by 2070, the IEA estimates that $160 billion per year is needed, on average, across India’s energy economy between now and 2030. That’s three times today’s investment levels. Therefore, access of low cost long term capital is key to achieve net zero. 

Achieving net zero is not just about reducing greenhouse gas emissions. India’s energy transition needs to benefit its citizens, and well-designed policies can limit the potential trade-offs between affordability, security and sustainability. Green hydrogen will play a major role in achieving the net zero and decarbonising the hard-to-abate sectors. India aims to become a global hub for green hydrogen production and exports. India could easily create 5 million tonne green hydrogen demand thereby replacing grey hydrogen in the refineries and fertiliser sector. This 5 million tonnes will result in abatement of 28 million tonnes of CO 2 . This proportion will grow as we fructify green hydrogen economy and will result in 400 million tonnes of CO 2 abatement by 2050.

As a large developing economy with over 1.3 billion people, India’s climate adaptation and mitigation ambitions are not just transformational for India but for the entire planet. NITI Aayog and IEA are committed to work together to enable India to grow, industrialize and provide a better quality of life to its citizens without the need to carbonize.

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Decarbonising India: Charting a pathway for sustainable growth

At COP26, India announced its ambition to become a net-zero emitter by 2070—an important milestone in the fight against climate change. Despite low per-capita emissions (1.8 tons CO 2 ), India is the third-largest emitter globally, emitting a net 2.9 gigatons of carbon-dioxide equivalent (GtCO 2 e) every year as of 2019. The bulk of these emissions (about 70 percent) are driven by six sectors: power, steel, automotive, aviation, cement, and agriculture.

In this report, we propose more than 100 decarbonisation levers across these key sectors and take a deeper look at four cross-cutting decarbonisation opportunities: green hydrogen; carbon capture, usage, and storage (CCUS); natural climate solutions; and material circularity. We modeled outcomes on India’s net-zero journey along two scenarios: first, the current line-of-sight (LoS) scenario with current (and announced) policies and foreseeable technology adoption; and second, the accelerated scenario with far-reaching polices like carbon pricing and accelerated technology adoption, including technologies like CCUS. Our analysis shows that the benefits of a well-planned, orderly, accelerated transition could outweigh the downsides, given India’s growth outlook.

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India has the potential to create 287 gigatons of carbon space for the world. This amounts to almost half of the global carbon budget for an even chance at limiting warming to 1.5°C. The current pace of emissions intensity reduction is insufficient for India’s emissions curve to bend with the expected growth outlook. In the LoS scenario, India could reduce annual emissions from a historical trajectory of 11.8 GtCO 2 e to 1.9 GtCO 2 e by 2070, a 90 percent reduction in economic emissions intensity compared with 2019. It can reach 0.4 GtCO 2 e by 2050 in the accelerated scenario (Exhibit 1), with a potential to get to its net-zero-by-2070 commitment through new technology developments (such as direct air capture) over the next few decades.

LoS scenario reductions are challenging, and the accelerated scenario reductions even more so. There are emerging tailwinds in the form of reducing costs of renewables and electric vehicles (EVs), and the progressive policies being implemented (for example, the implicit carbon tax on transportation fuels of $140 to $240/ton CO 2 e) are helping the electrification of mobility. Yet, several other actions with significant scale-up potential are needed (Exhibit 2). For example: renewable capacity addition needs to increase from ten gigawatts (GW) to 40–50 GW per year; a hydrogen cost reduction and carbon price of $50/ton CO 2 is needed by 2030 to make green steel competitive (could lead to 211 metric tons (Mt) of steel capacity being built on the low-carbon hydrogen route instead of the coal route by 2045); battery costs have to decline by 40 percent by 2030 and green hydrogen by two-thirds by 2035; a nationwide rollout of charging infrastructure is needed; farmers have to adopt new practices for rice cultivation; targets for circularity have to be met and higher targets set.

Eight important messages underlie this report. Read and download the executive summary.

There is an urgency to prepare India for an orderly and accelerated decarbonisation within the current decade. Over three-fourths of the India of 2050 (and 80-plus percent of the India of 2070) is yet to be built. Developing this robust infrastructure in India will multiply demand across sectors: power (eightfold), steel (eightfold), cement (threefold), auto (threefold), and food (twofold). If policies are set in place to create the right demand signals within this decade, then India could add low-carbon capacities in the next two decades thereafter. For example, a carbon price of $50 per Mt by 2030 makes green steel competitive (could lead to 211 Mt of steel capacity being built on the low-carbon hydrogen route instead of the coal blast furnace route by 2045).

India benefits from an orderly transition. India’s transition from thermal power to renewables is expected to decrease the average cost of power supply from INR 6.15 per kilowatt-hour (kWh) in financial year 2020 to INR 5.25 per kWh and INR 5.4 per kWh by 2050 in the LoS and accelerated scenarios, respectively (Exhibit 3). 1 Full system cost of power including costs (factoring in reasonable returns and system losses) for generation, transmission, and distribution. The corresponding cost of power generation is INR 3.9 per kilowatt-hour. Sustainable-farming practices could help generate additional farmer income of INR 3,400 per hectare/year in the LoS scenario, which could increase to INR 4,800 per hectare/year in the accelerated scenario. India may save a cumulative $1.7 trillion in the foreign exchange, which may otherwise be spent on energy imports until 2070. In addition, India will have the opportunity to build itself right the first time, minimizing asset stranding. Finally, if India can start manufacturing in newer technologies, it has the potential to be a world leader in batteries, electrolyzers, green steel, and other areas.

Energy system shifts. Fossil fuels, which comprise 75 percent of India’s commercial energy mix today, decline to one-half in the LoS scenario and to one-sixth in the accelerated scenario by 2050 (Exhibit 4). In the accelerated scenario, over 60 percent of India’s refining capacity, 90 percent of its coal mining capacity, and 100 percent of its coal power generation would not be needed. Tax collections from auto fuel could decline to $36 billion by 2050 (from $85 billion currently). Ensuring resources are used appropriately will be vital. For example, the biomass currently being used by households for cooking, and which in future can be used for thermal-power generation, might potentially need to be directed to hard-to-abate sectors like cement.

Pressure on land systems. In the accelerated scenario, growth and decarbonisation combined may require 45 million more hectares of land than is available, of which nearly ten million hectares would be needed for renewable power and eight million for carbon sinks and forests. Innovative land optimization techniques such as maximizing barren land use for renewable power, vertical urbanization, and improved agricultural productivity would be needed to ensure sufficient land for decarbonisation.

Moderate impact on household spending and jobs. A critical consideration is the impact of the accelerated decarbonisation on Indian household spending and jobs. We estimate that by 2040, the increases in housing costs resulting from decarbonisation would, for the most part, be balanced by the limited impact on food costs (excluding impact on yields from direct climate change) and decrease in the costs of energy and transport, assuming an orderly transition. If the transition is disorderly (that is, if the initiatives are carried out at the wrong time or incorrectly), the economically disadvantaged would suffer a more adverse impact. Accelerated decarbonisation could transform over 30 million jobs (24 million new jobs could be created while six million existing jobs could be lost) by 2050. While important, the scale of workforce reallocation may be smaller than that from other macro trends (for example, 60 million new workers entering the workforce by 2030). That said, specific communities (such as coal mining and associated enterprises in Eastern India) could be adversely impacted, requiring support, reskilling, and alternative industrial development in particular areas.

Large funding needed (3.5–6 percent of GDP), frontloaded, but ‘in the money.’ India may need an estimated $7.2 trillion of green investments until 2050 to decarbonise in the LoS scenario and an additional $4.9 trillion in the accelerated scenario. Fifty percent of the investments needed for abatement between the LoS and the accelerated scenario is in the money, particularly across the renewable-energy, auto, and agriculture sectors; other sectors would likely need policy support from the government. The net spend (capex minus opex) will need to be frontloaded. As an illustration, net of operational savings, $1.8 trillion would be needed from 2030–40 and $600 billion from 2040–50 between the LoS and accelerated scenarios.

All stakeholders need to come together and act now to accelerate India’s decarbonisation. The government could provide policy and regulatory support to make projects across sectors economically viable. These could include providing incentives for the use of EVs and fuel cell EVs by balancing taxation, simplifying regulations for authorizing and installing new power and grid installations, creating demand signals for higher-cost green materials like steel, and generating support for localizing electrolyzer manufacturing. Support would also be required to ensure a just transition that minimizes impact on low-income households. These actions need to happen in the right sequence to avoid energy shortages, price increases, and transition disorderliness.

Achieving technological breakthroughs would require consistent public and private investment. It would also require willingness among business leaders and policy makers to adopt new technologies, for example, long-duration storage technologies to capture seasonality of renewable sources, advancement in fuel cell technology, and improvements in recycling technologies.

Against this backdrop, we propose the following ten actions to accelerate India's decarbonisation:

• Lay out a detailed medium-term decarbonisation plan with sector-specific priorities and policy frameworks that account for interdependencies across sectors and provide demand signals to guide corporates to invest.
• Accelerate implementation of a compliance carbon market (within three years). This would also require the creation of demand signals, especially in hard-to-abate sectors, and incentives linked to investments in newer technologies like CCUS.
• Enable banks to support the transition, catalyzed by a green-transition bank. Banks could be asked to come up with their investment glide paths within one to two years and build the necessary capability for assessing risks in these new spaces.
• Accelerate renewable adoption in the power sector to scale up capacity addition by four times and to deepen market reforms with a 30-year outlook in a manner that ensures a stable grid fed predominantly by infirm power.
• Empower a nodal authority to define a national land-use plan. Lay clear land-use guidelines for optimized use across urbanization, industrial needs, carbon sinks, agriculture, and renewables.
• Create a resilient indigenous manufacturing capability and increase investment in cleantech R&D. Efforts would be needed to develop local raw-material resources (such as rare earths), secure materials from elsewhere in the world, and produce equipment locally through mechanisms like production-linked incentive (PLI).
• Evaluate five carbon capture and storage hubs in Gujarat (Jamnagar), Odisha (Paradeep), Rajasthan (Barmer), Maharashtra (Pune), and Andhra Pradesh (Vizag) potentially in public–private partnership for utilization and storage of captured carbon.
• Create a national circularity mission with recycling hubs in the top 20 Indian cities (contributing 35 percent of municipal solid waste), mandated targets on recycling rates, recycled raw-material use (for example, blending norms), and landfill levies.
• Enhance the National Hydrogen Mission with government playing a key role in accelerating demand through blending mandates, boosting cost competitiveness via capital subsidies and R&D investments, and enabling export opportunities via international trade agreements.
• Empower companies to play on the front foot, evaluating investment opportunities that this green trend will unlock, aligned with India’s national plans or opportunities opened up by decarbonisation of other countries (for example, green-hydrogen derivative exports).

India needs to take thoughtful actions now to set itself up for an accelerated and orderly transition. Looking beyond the short term and laying the foundation for this transformation within this next decade is the imperative for a decarbonised India and world.

Rajat Gupta is a senior partner in McKinsey’s Mumbai office, where Divy Malik is an associate partner, and Shirish Sankhe is a senior partner; Naveen Unni is a partner in the Chennai office.

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India’s Transition to a Green Economy Presents a $1 Trillion Opportunity

Alexandra May, Public Engagement, World Economic Forum, [email protected]

· A new study by the World Economic Forum presents a sectoral roadmap for India to accelerate decarbonization and drive global climate action efforts

· According to the report, India’s transition to a net-zero economy could create over 50 million jobs and contribute more than $1 trillion in economic impact by 2030

· As the economy transitions from agrarian and service-led towards manufacturing-led growth, India has an opportunity to accelerate its transition to a net-zero and green economy

· Read the full report here

Geneva, Switzerland, 8 November 2021 – As consensus emerges on the urgency and magnitude of the transformation needed to decarbonize the global economy, India’s role and contributions will be critical if the world is to achieve current targets.

The World Economic Forum has released today a new report outlining how India’s path to decarbonization will have an estimated economic impact of over $1 trillion by 2030 and around $15 trillion by 2070.

The Mission 2070: A Green New Deal for a Net-Zero India report provides a roadmap for India’s transition to a low-carbon economy as it moves away from agriculture and services to manufacturing and a greener economy.

Published in collaboration with Kearney and the Observer Research Foundation, the report underlines the potential to save lives, catalyse new industries, create jobs and boost India’s contributions to addressing climate change.

At the ongoing United Nations Climate Change Conference (COP26) taking place in Glasgow, Prime Minister Modi has committed India to an ambitious five-part Panchamrit pledge. India’s five commitments are a critical foundation of the global pathway to achieve the ambitious 1.5-degree Celsius global warming target.

“How India continues to deliver growth and energy security to its citizens while ensuring the transition to a net-zero and green economy will define our collective success in the global fight against climate change,” said Sriram Gutta , Deputy Head, India and South Asia, World Economic Forum. “We are calling on the government, businesses and civil society to work with us to accelerate climate action and ensure a future that is good for both people and the planet.”

The report highlights five sectoral pillars and four cross-sectoral enablers for India to maximize the opportunities presented by a Green New Deal, with the potential to create more than 50 million net new jobs and over $15 trillion in economic value by 2070.

The five pillars – energy, mobility, industry, infrastructure and cities, and agriculture – contribute to over 90% of India’s greenhouse gas emissions. According to the report, India will need to address these pillars, alongside four cross-sectoral enablers, as part of its green transition.

These enablers are: an accelerated approach to green technology innovation, an overarching framework to catalyse green finance, an integrated approach to carbon, capture, utilization and storage, and a plan for climate adaptation. The five pillars and four enablers are dependent on India’s continued economic growth, driven by technological development, financial innovation and strong political leadership.

“This report visualises India becoming the world's first $5 trillion and thereafter $10 trillion 'off-carbon' economy”, said Samir Saran , President, Observer Research Foundation. “In the decade ahead, we will all need to work together on sectoral and geographical pathways to build a green subcontinent.”

“India needs to action two transformations: an economic transformation to drive prosperity and a green transformation to drive sustainability. Our research indicates that the two need not be in conflict. In fact, India’s green transition might be the most viable way to fuel its economic aspirations,” said Viswanathan Rajendran , Partner, Kearney India.

A Green New Deal for India will need all stakeholders – government, the private sector, investors and civil society – to step forward and catalyse the next green revolution. India has an opportunity to take bold action to achieve strong, equitable and shared growth, and avert the worst impacts of a changing climate.

The report aims to serve as a framework for a collaborative effort across the World Economic Forum, Kearney and the Observer Research Foundation to accelerate climate action in key sectors of the Indian economy. Together, these organizations will work closely with relevant stakeholders in India to generate new insights, help inform discussions and policy frameworks, and facilitate new partnerships.

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A Green India for all: An aspiration

As India’s green energy sector prepares to leap forward, it is worth examining the landscape and charting out the path ahead. Reforms in this sector have been on-going for over a decade and the total installed capacity from renewable sources has doubled in the last five years, touching the 100 GW mark this August. While this is surely a noteworthy improvement, India continues to depend on oil and gas imports. So, on this Independence Day, in alignment with SDG Goal 7 – “Ensure access to affordable, reliable, sustainable and modern energy for all”, the Prime Minister took a pledge to make India energy-independent by 2047. This requires challenging the status quo of policy implementation and starting with the grassroots, instead of highly developed regions.

The Prime Minister also recognised a need for ‘Sabka Prayas’, i.e., participation from the industry and from local governments and communities. Local communities are brimming with the potential for transformation. Launched under the umbrella of ‘Sabka Saath, Sabka Vikas’ , the Aspirational Districts Programme focuses on participation of all in the nation’s economy. For a country as socioeconomically diverse as India, it is very difficult to have an all-sharing growth model without proper policy interventions that can reach the grassroots. These interventions assist in creating strong systems which prioritize subnational contexts and needs, and measure the long-term progress towards sustainable development using the unique delta ranking system.

There are 112 Aspirational Districts across the country. UNDP’s appraisal shows that these districts have made more progress than non-aspirational districts. From model anganwadis to the digital tracking of child-growth charts, malnutrition through Poshan App, the program has been instrumental in engineering development through data to monitor improvements in 6 key areas. The programme’s unique feature relies on measuring the long-term progress in delta change instead of absolute values.

The UNDP also highlights the use of green technology for basic infrastructure development in Aspirational Districts. It showcases Goalpara, Assam, which used recycled plastic and geogrid technology to construct 183 km of green road. In fact, it is the first district in India to construct a green road. This has led to a large delta improvement with the establishment of over 400 habitations in the district with access to all-weather roads. As the nation moves ahead in its journey of a greener tomorrow, the most backward have the greatest advantage and can achieve maximum delta change.

Under the Aspirational District Programme, Basic Infrastructure also includes electricity.

Conventional electricity grids are difficult to extend to remote areas, and hence alternative solutions can be found in green energy technology. To make the most of India’s green energy potential for its Aspirational Districts, two complementary interventions are imagined. The first is to boost the manufacture of green energy technology through Production-Linked Incentives. This will generate supply, increase exports of world-class green energy products, and create employment. The second is to install and commission small-scale green energy capacity across the Aspirational Districts. Its usage by the community will improve the quality of life, vitalize the local economy, and generate demand. All of this together will generate a cycle of socioeconomic growth.

For green energy implementation, Gumla, an aspirational district in Jharkhand, has already taken the first inspiring step. The installation of home based solar panels has enabled access to clean energy and reduced dependence on unreliable conventional energy. This has led the village out of darkness.

On the basis of the maturity and feasibility of green energy technologies, the interventions should begin with solar energy. The advantage with solar energy lies in India's geography and the innovative solar cells. Solar farms can be set up even in small sizes. This increases availability and reduces transmission costs. Despite these advantages, the uptake of solar energy has been slow.

This is because the old silicon-based technology used in solar cells had to be imported and had an efficiency below 15%, making it too expensive to have small solar farms. However, recent technological and policy developments have revolutionized this landscape. First, the new perovskite-based technology has an efficiency of nearly 30% and costs only one-tenth of the old technology, and hence is economically viable at smaller scales. Second, the policy of AatmaNirbhar Bharat has encouraged production of solar cell technology within India, leading to lower costs and product reliability. Gumla and Goalpara are only examples of the many districts which are leveraging and harnessing the local resources and participating in bringing about a positive social change. The transformational journey to a greener future needs such inclusive mass movements. The Aspirational District Programme is the best initiative to channel such a transformation by leveraging local communities, as it removes heterogeneities in regional variations in development.

The programme with its increased scope in energy transitions, will power India’s ambitions as a world leader in green energy and achieve Agenda 2030. It serves as a lighthouse not just for our green energy revolution but also provides a model that is replicable across the world. With the motto of leaving no one behind and progressing by taking along those who are at the most risk of falling behind, our aspirational districts have proven their successes and have come out with flying colours as Champions of Change.

Views expressed above are the author's own.

Juhi Jain, Young Professional, AIM, NITI Aayog and Siddhey Shinde, Young Professional, S&T, NITI Aayog

This article was originally published in The Economic Times .

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• 07 Mar 2024

IFC India: Green-tech Entrepreneurship in India

Professor Vikram Gandhi’s Immersive Field Course (IFC) “Development while Decarbonizing: India’s Path to Net-Zero" delved into the critical aspect of decarbonization and sustainability goals amid India's rapid development. The course presented an opportunity for students to advance their knowledge of sustainability efforts, decarbonization, and net zero in the context of a broader development agenda. The class culminated in a series of site visits in January 2024 in Mumbai and Bangalore and this is one of 14 student essays that highlights their reflections on uncovering sustainable solutions across the country.

Introduction As a cohort of HBS students on Professor Gandhi’s 'Development While Decarbonizing: India's Path to Net Zero' course, we found ourselves immersed in the epicenter of India's clean tech revolution. Our team, dedicated to clean-tech entrepreneurship, embarked on a journey to understand the intricate tapestry of India's burgeoning green tech landscape. A pivotal moment in our learning expedition was the site visit to Log 9 Materials, a company that epitomizes the fusion of innovation and environmental stewardship. Our visit coincided with a startup meetup hosted by Log 9, which created an unprecedented opportunity to engage with other green tech pioneers from India, fostering a collaborative climate-focused atmosphere that was at the center of the entrepreneurship, climate tech ecosystem in Bangalore.

Background of Log 9

In the heart of India's technological innovation wave stands Log 9 Materials, a beacon of nanotechnology and graphene innovation. Established in 2015 by Akshay Singhal and Kartik Hajela, (and later with Pankaj Sharma), two visionaries from IIT Roorkee, Log 9 stands out as a company not merely content with joining the clean energy race but determined to lead it, especially in tropical countries, by the dawn of 2030. From its nascent stages focusing on the multifaceted applications of graphene, Log 9's trajectory has been nothing short of meteoric. The company's foray into Aluminum-air fuel cells, oil spill containment, and the electrification of vehicles, including scooters and auto-rickshaws, has marked it as a trailblazer in clean energy alternatives.

With a successful Series A funding round that drew powerhouse investors like Sequoia Surge and Exfinity Venture, Log 9 has secured a formidable $31.7 million across multiple rounds of funding. This financial backing underscores the confidence and belief in Log 9's strategic vision, which is steadfastly aligned with creating a future where mobility and energy consumption are clean, efficient, and sustainable. From the team’s one day experience at the headquarters, we witnessed the company’s scrappy nature, commitment to innovation, and operational creativity.

Key Takeaways from the Log 9 Site Visit

The Entrepreneurial Manager (TEM) course at HBS introduced the Diamond-Square framework as a means to analyze an entrepreneurial venture. The framework helps highlight some areas of strength and key insights from our Log9 site visit. Overall, all ventures should use this framework to ensure that they have found “Product-Market-Fit”; this is even more critical in resource-constrained developing countries like India.

Context + Customer Value Proposition: The essence of entrepreneurship lies not just in creating solutions but in meticulously tailoring them to the needs of the market. Our visit to Log 9, was a deep dive into this philosophy. The company's founder highlighted the importance of Indian-specific focus, particularly in the EV sector, where international products often fail to accommodate the local nuances of climate, traffic, and regulatory dynamics. Log 9's commitment to customizing battery technology for the extreme heat and humid conditions common in India’s environment underscores the broader narrative of innovation that resonates with local contexts. This means that Log9 has a unique and well-differentiated CVP to offer OEMs as it seeks to gain new customers and grow.

Go-To-Market: One striking revelation was Log 9's strategy for targeting a commercial customer base. By focusing on commercial usage, Log 9 caters to clients who value functionality and cost over time over features and require robust solutions for extensive daily use. This approach is not only pragmatic but also resonates with the Indian market, where commercial vehicles are essential to the economy and the environment. With this GTM, Log9 is applying Judo strategy by building a strong & technically capable brand which is defensible vs. going to the larger retail side first.

Technology/Operations: Beyond the development of battery chemistries for the India context, Log 9's methodical use of data to enhance battery performance exemplifies how technology can lead to sustainable operational improvements. By analyzing fleet data, they've developed strategies to optimize battery usage, unlock sustainable fast charging, and prolong life. Thereby, encouraging drivers to adopt behaviors that contribute to the longevity and efficiency of their vehicles. This underscores their commitment to sustainability across the value chain while demonstrating their technical capabilities.

Team: Our visit also shed light on the company's ethos towards building technical talent. In a sector where specialized skills are scarce, Log 9 invests in its people, fostering a culture of learning and problem-solving. Log 9 Founder, Pankaj Sharma, stated, “Before you build the tech, you must build the people,” emphasizing Log9’s commitment to attracting and retaining the best talent.

Partners + Investors: The journey of Log 9 from its humble beginnings to a frontrunner in green technology is a testament to the power of nurturing a strong startup ecosystem. The company's close-knit relationships with suppliers and investors have cultivated a fertile ground for innovation, leading to significant achievements and a robust model for startup success. This collaborative approach has been crucial in Log 9's ability to adapt and thrive in a dynamic market.

Cash Flow Formula + Competition: Lastly, our discussions touched upon the ambition for international expansion and the prospect of an exit. Log 9 is eyeing markets beyond India as it offers a means to reach an appropriate TAM, leverage synergies, and hopefully increase likelihood of becoming profitable. It realizes that the technology it developed for India also has relevance in other markets that share India’s climatic conditions and large commercial two-, three-, and small four-wheeler fleets. Additionally, the competitive landscape means that international expansion invites foreign investment and the potential for strategic exit. This strategy is a reflection of the larger trend among Indian startups, like Pixxel, which, due to the relatively passive nature of Indian strategics in early-stage funding and acquisitions, often look outward for later-stage investments and exit opportunities.

Conclusion Log 9’s dedication to aligning their products with the real-world demands of India's market, coupled with their commitment to empowering their workforce and strengthening startup ecosystems, sets a benchmark for aspiring green tech entrepreneurs globally.

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Green Growth: India’s strategy for Green Economy

Last updated on March 7, 2024 by ClearIAS Team

Green growth is one of the seven top priorities of the Union Budget 2023-24 for ushering green industrial and economic transition, environmentally friendly agriculture, and sustainable energy in the country. Read here to get a comprehensive understanding of India’s efforts towards green energy transition.

The Union Budget 2023-24 has envisaged several projects and initiatives spread across various sectors and ministries like Green Hydrogen Mission, Energy Transition, Energy Storage Projects, Renewable Energy Evacuation, Green Credit Program, PM-PRANAM, GOBARdhan Scheme, Bhartiya Prakritik Kheti Bio-Input Resource Centres, MISHTI, Amrit Dharohar, Coastal Shipping, and Vehicle Replacement.

The aim is to accelerate the momentum for green growth in the country by forwarding new-age reforms along with finding solutions to current challenges.

The green energy announcements in the budget play a key role in establishing India as a leading player in the global green energy market. India has been the fastest in renewable energy capacity addition among major economies since 2014.

Table of Contents

What is Green Growth?

Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies.

Green growth is not a replacement for sustainable development.

• It provides a practical and flexible approach for achieving concrete, measurable progress across its economic and environmental pillars while taking full account of the social consequences of greening the growth dynamic of economies.
• The focus of green growth strategies is ensuring that natural assets can deliver their full economic potential on a sustainable basis.
• That potential includes the provision of critical life support services – clean air and water, and the resilient biodiversity needed to support food production and human health.
• Natural assets are not infinitely substitutable and green growth policies take account of that.

Green growth policies are an integral part of the structural reforms needed to foster strong, more sustainable, and inclusive growth . They help in several aspects of growth-

• Enhancing productivity by creating incentives for greater efficiency in the use of natural resources, reducing waste and energy consumption, unlocking opportunities for innovation and value creation, and allocating resources to the highest value use.
• Boosting investor confidence through greater predictability in how governments deal with major environmental issues.
• Opening up new markets by stimulating demand for green goods, services, and technologies.
• Contributing to fiscal consolidation by mobilizing revenues through green taxes and the elimination of environmentally harmful subsidies.
• These measures can also help to generate or free up resources for anti-poverty programs in such areas as water supply and sanitation, or other pro-poor investments.
• Reducing risks of negative shocks to growth due to resource bottlenecks, as well as damaging and potentially irreversible environmental impacts.

Strategies for greener growth need to be tailored to fit specific country circumstances. They will need to carefully consider how to manage any potential trade-offs and best exploit the synergies between green growth and poverty reduction.

Green growth strategies also recognize that focusing on GDP as the main measure of economic progress generally overlooks the contribution of natural assets to wealth, health, and well-being.

They, therefore, need to rely on a broader range of measures of progress, encompassing the quality and composition of growth, and how this affects people’s wealth and welfare.

India’s Green Growth strategy

Green growth, from green credits to green energy to green mobility to green farming, was among the seven main priorities that the latest budget announced.

Indian green growth and energy transmission are outlined on three pillars:

• Increasing the production of renewable energy
• Reducing the use of fossil fuel in the economy
• Rapidly moving towards a gas-based economy in the country

Measures like ethanol blending , PM KUSUM Yojana, incentives for solar manufacturing, rooftop solar scheme, coal gasification, and battery storage in the Budgets of the past few years underlined the strategy.

Other initiatives like green credit for industries, PM Pranam Yojna for farmers, Gobardhan Yojna for villages, vehicle scrapping policy for cities, and Green Hydrogen and wetland conservation are also paving the way to achieve the same.

India has been the fastest when it comes to renewable energy capacity addition among major economies since 2014.

• India achieved the target of 40% contributions from non-fossil fuels in the installed electricity capacity 9 years before the target date.
• India achieved the target of 10% ethanol blending in petrol 5 months before time and emphasized that the nation strives to achieve 20% ethanol blending in petrol by 2025-26 instead of 2030.
• A capacity of 500 GW will be achieved by 2030.
• The launch of E20 fuel and emphasis on biofuels has brought new opportunities for investors.
• The development of waterways in India is being given priority to encourage water-based transport and greener cargo handling.

India has to increase its battery storage capacity to 125 gigawatt hours in the next 6-7 years.

• Funding has also been initiated for Battery Energy Storage Systems: a capacity of 4,000 MWH will be supported with Viability Gap Funding (VGF).
• The VGF support and greater thrust on pumped hydro are critical to helping India move towards meeting the Energy Storage Obligation targets.
• To further green mobility, the import of capital goods and machinery required for the manufacture of lithium-ion cells for batteries used in electric vehicles will be exempted from customs duties.

Under the National Green Hydrogen Mission , India is moving with a target of production of 5 MMT of green hydrogen.

• An allocation of Rs 19 thousand crores has been made to incentivize the private sector in this field.
• Other opportunities such as electrolyzer manufacturing, green steel manufacturing, and long-haul fuel cells are also being given importance.

The vision of “LiFE”, or Lifestyle for Environment , will move the country and world towards an “environmentally conscious lifestyle”.

India is moving forward firmly for the panchamrit and net-zero carbon emission by 2070 to usher in green industrial and economic transition.

Read: Leadership Group for Industry Transition (LeadIT)

Government Initiatives for Green Growth

Some of the other major initiatives driving India’s green growth are:

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) Scheme is aimed at ensuring energy security for farmers in India.

It is honoring India’s commitment to increase the share of installed capacity of electric power from non-fossil-fuel sources to 40% by 2030 as part of Intended Nationally Determined Contributions (INDCs) .

The scheme was launched in 2019 with 3 components:

• Component-A: For Setting up 10,000 MW of Decentralized Grid Connected Renewable Energy Power Plants on barren land.
• Component-B: For Installation of 17.50 Lakh stand-alone solar agriculture pumps.
• Component-C: For Solarisation of 10 Lakh Grid Connected Agriculture Pumps.

Gobardhan Yojana

India has the potential of producing 10 thousand million cubic meters of biogas from Gobar (cow dung) and 1.5 lakhs cubic meters of gas which can contribute up to 8% to the city gas distribution in the country.

Gobardhan Yojana launched in 2018, is an important component of India’s biofuel strategy. In this budget, the government has announced plans to set up 500 new waste-to-wealth plants under the Gobardhan Yojana.

The Galvanizing Organic Bio-Agro Resources Dhan (GOBAR-DHAN) scheme is implemented under the Swachh Bharat Mission Gramin -Phase 2, by the Department of Drinking Water and Sanitation under the Jal Shakti ministry.

India’s vehicle scrapping policy

This is a crucial part of the green growth strategy as it creates space for a cleaner fleet of vehicles.

The Vehicle Scrappage Policy launched on August 13, 2021, is a government-funded program to replace old vehicles with modern & new vehicles on Indian roads.

According to the new policy, commercial vehicles aged >15 years and passenger vehicles aged >20 years will have to be mandatorily scrapped if they do not pass the fitness and emission tests

The policy is expected to reduce pollution, create job opportunities and boost demand for new vehicles. Following the principle of Reuse, Recycle, and Recovery gives new strength to our circular economy .

The government will promote and facilitate one crore farmers to adopt natural farming through Prime Minister Program for Restoration, Awareness, Nourishment, and Amelioration of Mother earth (PRANAM).

The main objective of this scheme is to reduce the use of chemical fertilizers and promote the balanced use of chemicals, promote green growth, and reduce the negative impact on the environment.

Green Credit programme

A Green Credit program to encourage behavioral change will be notified under the Environment (Protection) Act .

This will incentivize environmentally sustainable and responsive actions by companies, individuals, and local bodies, and help mobilize additional resources for such activities.

MISHTI and Amrit Darohar

‘Mangrove Initiative for Shoreline Habitats & Tangible Incomes’ or MISHTI, which will involve planting mangroves along the coastline and on salt pan lands, wherever feasible, through convergence between MGNREGA , CAMPA Fund, and other sources.

Amrit Darohar is another new scheme, that will be implemented over the next three years to “encourage optimal use of wetlands, and enhance biodiversity, carbon stock, eco-tourism opportunities, and income generation for local communities”.

Way forward

India has huge potential to lead the world when it comes to technology for Green Energy and it can forward, the cause of global good apart from generating Green Jobs.

Also, as the G20 President for the term, the concept of green growth being a priority area validates how sustainable development is a major vision of Indian policymaking.

The budget 2023-24 also identifies 100 projects to improve last-mile connectivity for industries like coal and ports, as well as activities that would not be considered green growth, such as building 50 extra airports.

Also, there are no funding resources for important initiatives like the National Mission on Himalayan Studies, the National Adaptation Strategy, and the National Climate Change Action Plan. This occurs at a time when Joshimath and several other Himalayan cities are undergoing land subsidence .

Thus, India has to make sure that funding is going towards low-carbon technology, as well as identify the economic sectors and environmental degradation hotspots and take action to remedy them.

Read: Green Energy Partnerships of India; Battery Energy Storage System (BESS); Zero carbon buildings

-Article written by Swathi Satish

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• Green technology

Incentivisation of green technologies in India

The global climate pledge has fuelled the country’s ambition to adopt environmentally friendly technology, and everyone is invited to join

I ndia, with a base of 1.5 billion people and a USD3.3 trillion economy, has enormous potential for innovation, inception and successful implementation of modern technologies, including green ones. Recently, the Indian economy has not only demonstrated covid resilience but also robust growth across many sectors. According to the International Monetary Fund, India is expected to show economic growth of 8.2% in 2023, which would be on par with the growth of the world’s leading economies.

The pandemic and the Russia-Ukraine conflict have led developed countries to consider not only diversifying their energy baskets from different regions, but also to diverse sources of energy. The sooner-than-expected emergence of telltale signs of climate change have forced governments across the globe to consider reducing dependence on non-renewable energy sources and look for cleaner alternatives. Despite the growing need for energy, India has committed to an ambitious pledge of achieving net-zero carbon emissions by 2070 and is already in the process of reforming its energy sector to embrace green energy. The country’s energy sector has doubled the total installed capacity of renewable energy to 100GW in the past five years.

With strong commitments to climate change and phasing down the use of coal and other fossil fuels for growing energy needs in the years to come, India presents opportunities for innovation and investment in the field of green technologies.

PROMOTION STRATEGIES

Adoption and promotion of green technologies in India is a conscious effort to reduce dependency on non-renewable energy sources and to attain nationally determined contributions, as part of the climate action plan to cut emissions. These actions are very much aligned with different policies aimed at the sustainable economic development of the country.

In India, there have been several efforts, which directly and indirectly helps the adoption of green technologies. Important among such efforts are the Aatma Nirbhar Bharat Abhiyan , or self-reliant India campaign. This initiative propelled the government to revise the criteria for the classification of micro, small and medium-sized enterprises and easy registration by interlinking different portals to provide a one-stop interface for a diverse range of regulatory and other business requirements like credit facilitation, skill development and recruitment, adoption of stringent emission and waste management laws, reduction of coal use for power generation and the promotion of electric mobility, all of which ensures adoption of green technologies.

IMPLEMENTATION FEASIBILITY

India has long realised the need to adopt green technologies and has considered it as one of the national priorities for more than two decades in order to address environmental issues caused by non-green technologies, which damage the environment beyond repair and are a threat to sustainable growth and development.

However, there are teething problems related to the adoption and implementation of green technologies. For instance, green technologies in general are not economical and are also labour-intensive. Unlike developed countries, which are technologically advanced and have the capital to adopt green technologies, a full-fledged transition to green technologies for a developing country like India is not easy.

Due to constantly updated policies spread across different sectors to promote sustainable development, India now has a huge demand for green technologies. India also has the potential to exploit the labour-intensiveness of green technologies as an opportunity to cater to employment requirements. Other factors that place India in an advantageous position are its large domestic market and having an established industry in low-carbon environmental goods and services.

PROMISING SECTORS

Extensive policies and programmes across different sectors have promoted the adoption of green technologies for sustainable development. Sectors where policies are remarkably successful in switching to green technologies are:

Energy is one of the sectors dominated by green technologies. A multitude of policies are in place for replacing non-renewable energy sources with clean and green energy sources such as solar, wind, small hydro, and biofuels. The installed capacity of the green energy sector in India stood at 94.43GW in 2021, with a target to reach 275GW by 2027. The country is also aiming to increase the share of natural gas in the energy mix to 15% by 2030 from the current 6.3%. Thus, there are huge investment opportunities for green technologies across the energy sector.

Transport and the energy-intensive industrial sectors in India are supported by several policies for the adoption of green technologies, including the National Electric Mobility Mission Plan, the Faster Adoption and Manufacturing of Electric Vehicles scheme, stringent emission standards to regulate the output of air pollutants from compression ignition engines, a battery swapping policy, and energy efficiency standards for appliances. The electric vehicle market is showing steady growth and is expanding at a remarkable compound annual growth rate of 42.8%. India’s commitment to target 30% electric vehicles by 2030 is a cumulative investment opportunity worth as much as USD266 billion.

Wastewater treatment is another important market segment in India, where green technologies have been focused, and is estimated to reach USD35 billion by 2026.

FOREIGN TRADE POLICY

The foreign trade policy (FTP) of India is one of the most crucial policies for facilitating trade across borders. The FTP also focuses on areas such as bilateral and multilateral commercial relations, special economic zones, promotion of exports, facilitation of trade, regulation and development of commodities oriented towards exports. Despite several constraints like infrastructure, cost of transactions, procedural complexities, manufacturing constraints and inadequate diversification of exports, India has already signed the trade facilitation agreement at the World Trade Organisation (WTO).

The existing FTP, which extends until 30 September 2022, is expected to be replaced with an FTP that will introduce a new paradigm of regulatory and operational frameworks to reduce transit costs and create a low-cost operating environment. Policymakers are seriously considering and adapting input received from diverse stakeholders like investors, traders and exporters for the new FTP to develop an ecosystem that nurtures simplified and efficient trade by streamlining the regulatory and transaction processes, which are crucial for cross-border trade.

Some of the significant changes that can be expected from the new FTP will focus on ease of doing business and incentivisation of green technologies, which will help to improve energy efficiencies and sustainable developments across sectors.

The Indian government has already taken significant steps to withdraw subsidy-led schemes and the new FTP will provide more WTO-compliant schemes to provide a level playing field for investors across the globe. It is expected that the new FTP will also introduce tax incentives compliant with the WTO, easy access to credit, upgrading of infrastructure and technology, reduction of corporate tax rates and simplification of duty structures, and digitisation and unification of portals related to doing business. The government has fairly reconciled its FTP to provide better participation and opportunities in sectors espousing green technologies, which will be supported in parallel by other domestic policies encouraging green technologies.

Although India has launched a multitude of schemes for strengthening and faster adoption of green technologies, there is room for other actions that would establish the much-required effective system to promote and strengthen green technologies at various levels.

Incentivisation of innovation, advancements, and adaptation of green technologies play a crucial role in offsetting the heightened economic implications of green technologies. India is taking cues from the stakeholders seriously, and is already providing concessional tax rates to companies investing in green technologies. IP protection for green technologies should also be promoted by adopting fast-track procedures or provisions like the patent prosecution highway to speed up the examination and grant of patents for inventions related to green technology. Green technologies, which are based on cradle-to-cradle design and focused on the reclamation of materials, should be prioritised at all levels for sustainable development.

The legal framework to facilitate and promote collaboration is another aspect that will promote the development and deployment of green technologies. A policy framework to promote technology transfer in green technologies on mutually beneficial terms should also be developed, rather than simply gaining access to such technologies. It is imperative to change policies related to funding, insurance and access to market.

Upgrading of technology needs to be fine-tuned for the promotion and adoption of green technology, rather than acting as a barrier to the development and deployment of green technologies.

To conclude, India’s continually evolving policies and reforms focused on ease of doing business and attaining nationally determined contributions are clearing a path for faster adoption of green technologies and for facilitating investors across the globe.

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Record-low solar tariffs and flexible clean power auctions pushed India’s renewable energy growth in the midst of pandemic impacts. Now, it’s a question of pace.

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Prime Minister Narendra Modi declared that India is on track to reach, and ultimately exceed, its ambitious renewable energy targets.

Photo Credit: Shutterstock.com

Last March, the Indian government implemented one of the most stringent coronavirus lockdowns in the world. With just a few hours’ notice, all 1.3 billion people in the country were ordered to stay at home for several weeks. Ongoing restrictions to limit the spread of the virus crippled economic activity. Businesses closed. Workers fled from cities. And India’s clean energy transition was put  on pause .

Looking back, however, 2020 proved to be a decisive year for clean energy in India.

Bids for new solar projects hit record lows last year, affirming that coal is no longer the cheapest source of electricity. The country awarded landmark supply contracts for flexible renewable power, an important step in addressing the limitations of intermittent wind and solar. Cheap renewables were favored on the grid last year, which caused coal use to fall as energy demand plummeted amid the economic slowdown. Stimulus measures for utilities, an extension to project commissioning deadlines, and domestic solar manufacturing initiatives also helped to bolster the outlook for renewables.

But while the renewable energy industry endured a turbulent 2020, coal remains the dominant player in India’s electricity mix. With power demand expected to triple by 2040 as India’s population continues to achieve upward mobility, fossil fuels are poised to see continued growth even as the clean energy market thrives.

Two burning questions for India — and the world — are how fast the use of renewables and related clean energy technologies can scale, and to what extent can they mitigate the increase in fossil fuel use. As the second-largest coal-producing and -consuming country on earth and the third-largest emitter of greenhouse gases, India’s transition from carbon-intensive resources is a critical front in the global climate change fight.

Challenges lie ahead, but there may be cause for optimism. As the country grapples with the intertwined issues of air pollution, water scarcity and energy security, along with energy access and affordability, experts say they’re starting to see a future for India where coal will no longer be king.

"Despite the pandemic, there has been a slew of challenges for coal mining and generation, and the government is becoming clearer that energy transition is on track even as the economic recovery continues to take shape,” said Aarti Khosla, founder and director of Climate Trends, a Delhi-based strategic communications initiative, and former communication lead for WWF India.

“The energy transition is gathering speed,” she said. “It's no more a question of if the transition will happen or not. It's only a question of what the pace of the transition will be.”

Modi: India on track to "exceed" its renewable targets

Speaking at the United Nations Climate Ambition Summit in mid-December, Prime Minister Narendra Modi declared that India is on track to reach, and ultimately exceed, its ambitious renewable energy targets.

“India has reduced its emission intensity by 21 percent over 2005 levels,” he said at the virtual event, which marked five years since the adoption of the Paris Agreement on Climate Change. “Our renewable energy capacity is the fourth largest in the world. It will reach 175 gigawatts before 2022.”

India’s total installed capacity of renewable energy, not including hydropower, currently stands at 90 gigawatts. According to a year-end review by the Ministry of New and Renewable Energy, another 49.59 gigawatts of renewable energy capacity is under installation, and an additional 27.41 gigawatts of capacity has been tendered. This puts the total capacity of renewable energy projects already commissioned or in the pipeline at nearly 167 gigawatts.

Modi recently announced that he expects the country’s clean energy capacity to reach 220 gigawatts by 2022 with the inclusion of hydropower — besting the country’s 175-gigawatt target. India has an even more ambitious target of 450 gigawatts of renewable energy capacity by 2030. By that year, the government wants to meet half of the country's power demand with renewable energy resources. 

“India is not only on track to achieve Paris targets but to exceed them beyond your expectations,” Modi said at the climate summit last month.

While leadership reaffirmed the country’s lofty goals, the pace of renewable energy deployment in India slowed significantly in 2020. Solar installations in the first nine months of the year totaled 1.73 gigawatts, marking a 68 percent decline from the same period in 2019, according to Mercom India Research . Wind installations also fell dramatically .

Still, India’s renewables industry weathered the market turbulence. Central and state governments took steps to support the domestic clean energy sector last year, which have put low-carbon energy resources in a position to see continued growth and claim a greater share of India’s coal-heavy power system.

Record-low solar bids and "must-run" status

One key action the Modi government took to bolster clean energy in 2020 was to grant wind and solar projects “must-run” status, which means that their power cannot be curtailed except in conditions that would compromise grid stability. Renewables were insulated from the decline in electricity demand as a result, while coal plants took a major hit.

During the 2019/2020 fiscal year, the average coal-fired power plant ran just 55.5 percent of the time, according to the Institute for Energy Economics and Financial Analysis (IEEFA) . In April 2020, the average Indian coal-fired power plant operated at just 40 percent capacity utilization, creating inefficiencies and ultimately increasing the cost of production.

In addition to granting renewables must-run status through the pandemic, the government launched multiple tenders for new renewable energy projects to meet India’s future energy demand. Not only did the auctions continue but the country also saw a series of record-low solar bids.

Last month, a 500-megawatt solar auction held by utility Gujarat Urja Vikas Nigam Limited set a new record for the lowest price in India of INR 1.99 ($0.0269) per kilowatt-hour.

The latest auction results narrowly beat a record set just a few weeks prior. In late November, state-owned Solar Energy Corporation of India announced the outcome of a 1.07-gigawatt solar auction in Rajasthan that attracted bids of INR 2 ($0.0270) per kilowatt-hour from Saudi Arabia-based Aljomaih Energy and Water Co. and Sembcorp Energy’s India arm Green Infra Wind Energy Ltd.

These recent historic bids are 15 percent lower than the previous Indian record of INR 2.36 ($0.032) per kilowatt-hour, submitted by Spanish developer Solarpack in an auction held earlier in the year. In addition, developers set a new record for solar-wind hybrid projects, quoting a price of INR 2.41 ($0.0326) per kilowatt-hour.

“Solar is now by far the lowest-cost source of new energy in India,” said Tim Buckley, director of energy finance studies for Australia and South Asia for IEEFA. Solar is helping to meet the country’s objective of making power affordable to low-income residents, he said. But that is far from the only benefit. 

“India's economy is going to see its energy consumption double over the next decade or two, and they want to enhance energy security, which means they want to ideally use domestic energy supplies,” said Buckley. “They also have a massive air pollution problem, so they want to reduce the air pollution issues. They have a massive water security issue, too…so they want to use energy sources that are least taxing on their water supply. Solar ticks every one of those boxes.”

“And...it doesn't emit carbon dioxide or methane,” he added. “So there's an ancillary benefit that it helps solve the world's climate crisis.”

Tim Buckley explains why 2020 could be a tipping point for fossil fuels in India and around the world on this episode of Political Climate .

The combination of low-cost financing and expected solar module cost declines are among the key factors driving down solar prices in India today. Delivering on this year’s record-low solar bids will be a challenge; it will require developers to deploy the latest technology and accurately estimate costs for every project component.

But while the recent bid prices set a tough standard for the Indian solar industry, IEEFA analysts say that it demonstrates investor confidence in the sector and opportunities for continued cost reductions as the country strives to create a more sustainable and domestic-based energy system.

A boost for domestic solar manufacturing

In a testament to India's growing demand for low-cost and locally manufactured power, Indian power minister R.K. Singh announced last fall that the country would boost its domestic solar manufacturing base to reduce reliance on solar cells and modules imported from China. He also announced that renewables would replace the generating capacity from 29 coal plants slated to retire in the coming years.

State-owned enterprise Coal India  — the largest coal-producing company in the world — announced that it will enter the solar value-chain business and launch a new renewable energy vertical. The company received board approval to establish an integrated solar wafer manufacturing facility in December. There are also reports that other state-owned companies could be required to establish a domestic polysilicon supply chain.

In November, Prime Minister Modi announced that the government will offer new incentives for Indian-made solar modules, which follows an announcement that solar modules have been included in a production-linked incentive scheme to help make domestic players more competitive abroad.

A lifeline for renewable projects and utilities

In addition to the measures above, the Indian government extended commissioning deadlines for wind and solar projects already under development, taking into account that developers couldn’t get their workers and equipment to their construction sites amid the lockdowns.

“T hey gave a blanket five-month extension to all projects, which was really essential,” said Sumant Sinha, chairman and managing director of ReNew Power, India's largest clean energy company.

Another significant step the government took to benefit the clean energy sector was to give power distribution companies (discoms) a roughly $13 billion liquidity injection as part of a stimulus package to shore up the Indian economy. The country’s discoms, which have long suffered from financial woes , fell deeper into debt due to weak power demand caused by the COVID-19 pandemic.

Because discoms purchase the power from renewable energy projects, the financial health of the utility sector is critical to keeping India’s clean energy transition moving forward. Analysts note that utility bailouts also benefit thermal power plants . But according to Sinha, the stimulus funding was critical to ensuring that renewable energy generators continued to get paid on time.

“All of these steps have really been very positive,” said Sinha, who recently published the book Fossil Free  focusing on the drivers of India’s clean energy transition and path ahead. “I think they indicate that the Indian government is very serious about supporting the growth of renewable energy and they are willing to do whatever is required to push the agenda forward on that front.”

Landmark auctions for flexible renewable energy

As the share of renewables on India’s power grid continues to grow, so too does the demand for new technologies to balance better integrate these intermittent resources.

In January 2020, the Solar Energy Corporation of India   (SECI) announced the results of its first peak power tender , requiring developers to couple wind and solar with energy storage to meet grid needs at times of peak demand. At 1.2 gigawatts, the auction represented one of the largest renewables-plus-storage tenders in the world. Greenko Group and ReNew Power ultimately won 900 megawatts and 300 megawatts of capacity, respectively.

SECI also held the country’s first tender for " around-the-clock " clean power last year, which requires developers to bundle solar with wind, hydropower or energy storage to provide an 80 percent plant load factor over the course of the year . ReNew Power was the sole winner in the around-the-clock auction, which was criticized for having terms that were both  too tough and too lenient  in turn. 

These auctions mark a new era in India's energy transition. The government is seeking these new kinds of bids with a view to "making renewable energy more acceptable into the grid and enabling India’s discoms to buy more renewable energy," said Sinha. But he acknowledged that it’s still early days for the next wave of cleantech products and services in India.

There is only one utility-scale energy storage project deployed in India today:   a 10-megawatt-hour pilot project owned by Tata Power Delhi Distributed Limited. ReNew’s peak power and around-the-clock projects will be the next battery installations to come online, and they’re still a year and a half out.

Tata Power, The AES Corporation and Mitsubishi Corporation inaugurate India’s first grid-scale battery-based energy storage system in Rohini, Delhi.

“The government is introducing all of these storage-based tenders [because] they are experimenting to ensure that...the storage ecosystem develops in India,” Sinha said.

The International Energy Agency forecasts that India will eventually become the largest market for utility-scale battery storage worldwide. But right now, the government is grappling with what the ecosystem for energy storage in India should look like, including the mix of standalone battery projects versus renewable energy hybrid systems and requirements for ancillary services. 

"Over the last decade, India’s government had the luxury of focusing mostly on adding solar and wind energy capacity as fast as possible. Now it must walk, chew gum and much more," Varun Sivaram, senior research scholar at the Columbia University Center on Global Energy Policy, wrote in a recent analysis for the Aspen Institute .

"The next phase will require deep structural reforms to create a cleaner, more flexible and more efficient power system," he continued. "But given the impressive progress to date on deploying renewable energy and the willingness of the government to constantly experiment with new policy approaches, there is reason for optimism about India’s energy future."

Travel to India for portions of this story was supported by  SED Fund , which supports a range of activities related to sustainability. All content is editorially independent, with no influence or input from the philanthropy. The views expressed in this article do not necessarily reflect the views of SED Fund or any of its affiliates.

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Clean India Green India Essay

• 100 Words Essay On Clean India Green India

Clean India and Green India are national programmes aimed at improving the country. In 2014, a campaign called "Clean India" was started—Swachh Bharat Abhiyaan or the Clean India Movement were the other names for this campaign. The programme was launched by Prime Minister Shri Narendra Modi by cleaning the streets. With numerous people taking part, this campaign was the biggest one ever. Garbage poses a serious danger to a country's growth and it is also a major threat to success in the modern economy. Industrialization and commercialization have only served to aggravate this issue. Therefore, as responsible citizens of this country, it is our responsibility and duty to do everything to keep our environment clean and green.

200 Words Essay On Clean India Green India

500 words essay on clean india green india.

Our carbon footprint has significantly grown since the Industrial Revolution. Greenhouse gases include carbon dioxide and other exhaust gases from cars and factories. Ironically, life depends on the greenhouse effect, which is a natural occurrence. If this phenomena didn't exist, the earth would swiftly lose heat and freeze. However, if substantial amounts of these gases continue to exist, the greenhouse effect will be amplified.

This may lead to an increase in global average temperatures and the melting of the polar ice caps. As a result, both individuals and the ecosystem suffer from this. The ecology may become unbalanced and endangered animals may go extinct. It can also have negative effects on the climate, often leading to loss of life and property destruction.

It is our duty to keep our surroundings clean, especially any public areas like parks, tourist attractions and restrooms. We should refrain from dumping trash everywhere, whether on the ground or in public spaces. Dustbins should be used in their place to maintain such areas clean. The ideal method to develop this habit is to launch a cleaning campaign in our home, kitchen, living space, and community. It is imperative that we preserve the natural splendour and purity of our surroundings before it is too late.

Clean India Green India is a nationwide effort launched by the Indian government. Mahatma Gandhi, father of the nation, also had a vision for a clean India. People are what make up a nation. Therefore, it is essential to alter public perceptions of the fight against sanitation. Change ought to be implemented logically. Budgets and programmes that prioritise Panchayats and rural communities' sanitation needs should be sufficient. Every Indian citizen should have the vision of a Clean India, Green India. The mission is the ideal development movement for India since it promotes sustainable growth in the nation.

Benefits Of Clean India Green India Campaign

We are less prone to get sick if we maintain ourselves and our surroundings clean. The unclean atmosphere around us promotes diseases like malaria, dengue fever, and others. We must maintain a clean, healthy atmosphere if we want to reduce our risks of becoming ill.

Cleanliness is beneficial to the mind—stress and despair are decreased. It keeps us energised and inspired.

The campaign has lessened open defecation by building individual, group, and public restrooms.

There has been a transform from the unsanitary restrooms into flush restrooms.

A promotion of healthy sanitation habits through behavioural changes and connecting people to sanitation and public health programmes has taken place.

People are now utilising solid waste disposal, reuse, and recycling techniques.

What We Can Do

So, the following are some methods that we use to go green and go clean—

Plastic is one of the main causes of environmental degradation, so it is crucial that we stop using it and replace it with materials based on wood in our houses. To lessen the impact of plastic on the environment, we must also use jute or paper bags rather than plastic ones.

We can always recycle and reuse objects to cut down on waste and pollution in the environment. For example, worn-out and discarded items can be utilised as décor and other things in homes and workplaces.

We can help save trees by printing on both sides of the page, utilising hand dryers in place of paper towels, and using reusable goods instead of toilet paper and throwaway towels. Additionally, we need to grow trees and other plants around our homes to maximise the amount of greenery there is.

We must utilise dustbins effectively if we are to achieve cleanliness. We should dispose of our trash in dustbins rather than on the roads and streets.

Awareness-raising campaigns must be performed in order to achieve community cleanliness and greenery. We must inform the public of the advantages of cleanliness and nature.

Since the Swachh Bharat Mission was established, many Indians have given cleanliness considerable consideration. People started doing daily cleanups of their surroundings and proper rubbish disposal. Additionally, Green India addresses the issue of climate change. The government wants to minimise greenhouse gases, which are the cause of climate change and global warming, by encouraging the growth of trees. In addition, the Indian government changed its energy and economic policies to be more environmentally friendly.

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Green Revolution Essay in 100, 200, and 500 Words

• Updated on  
• Feb 26, 2024

Norman Borlaug, an American Agronomist, is regarded as the father of the Green Revolution. His scientific methods of introducing modern agricultural techniques allowed the world to sustain agricultural production. In India, M.S. Swaminathan is known as the father of the green revolution. 

Green Revolution essay requires you to write compelling details about its history, early developments, modern techniques used, how it helped with production, etc. In this article, we will discuss some samples of Green Revolution essays. 

Table of Contents

• 1 Green Revolution Essay in 100 Words
• 2 Green Revolution Essay in 200 Words
• 3.1 Green Revolution in India
• 3.2 Challenges and Concerns

Master the art of essay writing with our blog on How to Write an Essay in English

Green Revolution Essay in 100 Words

‘Agriculture is one of the most popular essay topics in school and higher education. Several reasons make agriculture an important point of discussion, as it forms the basis of economic, social, and environmental aspects of countries. A country with a surplus amount of agricultural production not only sustains its population but also exports products to different countries.

Major developments in the agricultural sector started in the 1950s when modern technologies to increase production were introduced. However, an American agronomist, Norman Borlaug , changed the entire agricultural market, by introducing the Green Revolution. In India, it was Dr. M.S. Swaminathan, who is credited with the development of agricultural production and was given the title of the Father of Green Revolution in India.’

Also Read: Essay on Cleanliness for School Students

Green Revolution Essay in 200 Words

‘Green revolution refers to the introduction of modern technologies to increase agricultural productivity. The credit for the Green Revolution is given to Norman Borlaug , who, in the 1960s, conducted multiple studies to increase farm productivity. Norman’s research focused on two aspects; to increase agricultural production and enhance the food quality.

Agricultural production is the primary source of food for humans and various other animals. It provides a diverse range of crops, livestock, and other food products necessary for sustaining human life. A reliable and sufficient agricultural sector is essential for ensuring food security and preventing hunger.

In India, M.S. Swaminathan is regarded as the Father of the Green Revolution. His scientific methods and studies allowed India to increase its agricultural production and become a sustainable country. Swaminathan’s efforts also contributed to India’s economic growth. In India, more than 50% of the population is employed in agriculture or related occupations. These people were able to extract natural resources to their full potential with the modern techniques introduced by MS Swaminathan.

Today, India is the largest producer of milk, pulses, and jute. Not only this, India is the second largest producer of rice, wheat, sugarcane, groundnut, vegetables, fruit, and cotton. The Green Revolution was a transformative phase in the history of India and the world, where agricultural production was able to sustain the entire population.’

Also Read: Essay on Save Trees: Trees for Generations

Green Revolution Essay in 500 Words

‘The Green Revolution was the period of agricultural transformation where modern approaches were introduced for high-yielding crop varieties, advanced agricultural technologies, and improved management practices. The real game changer was Norman Borlaug, who developed high-yielding varieties of wheat that were resistant to diseases, adapted to different climates, and responsive to fertilizers. His efforts earned him the title of ‘Father of the Green Revolution.’

The high-yielding crop varieties, coupled with the use of chemical fertilizers and pesticides, revolutionized farming methods. Simultaneously, mechanization and irrigation practices were also developed, which played a crucial role in enhancing productivity. These developments transformed the farmers from traditional, subsistence-oriented practices to intensive, commercially driven agriculture.

Green Revolution in India

In India, the situation was quite different. India is naturally blessed with the most fertile land on the earth, which allows us to grow two types of crops on the same soil. The cropping pattern in India is different into different groups; Rabi, Kharif, and Zaid. An Indian Agroscientist, MS Swaminathan, took on the arduous task of introducing modern techniques and high-yielding varieties of wheat and rice.

To support the high-yielding varieties, there was a simultaneous effort to expand irrigation facilities across the country. The construction of dams, canals, and tube wells helped ensure a more reliable water supply for crops, reducing dependence on monsoon rains.

The Green Revolution promoted the use of chemical fertilizers and pesticides to enhance soil fertility and protect crops from pests and diseases. This approach aimed at maximizing yields through intensive agricultural practices. 

One of the primary achievements of the Green Revolution was a substantial increase in agricultural productivity. India transformed from a food-deficient nation to achieving self-sufficiency in food production, particularly in wheat and rice. 

The increased production of food grains contributed significantly to improving food security in the country. The availability of staple crops increased, leading to a more stable food supply and reduced dependence on imports.

The Green Revolution had positive economic implications. Increased agricultural productivity contributed to rural development, reduced poverty, and provided a foundation for overall economic growth.

Challenges and Concerns

The Green Revolution also had some negative effects. The intensive use of chemical fertilizers and pesticides raised environmental concerns, leading to issues such as soil degradation, water pollution, and loss of biodiversity. 

Social and economic disparities emerged due to the uneven distribution of land and other resources. Large landowners and farmers with access to resources benefited more than small and marginal farmers, contributing to social and economic disparities.

The expansion of irrigation, particularly through groundwater extraction, led to concerns about the depletion of water resources in certain regions. 

The emphasis on high-yielding varieties of a limited number of crops, primarily wheat and rice, has led to concerns about the lack of crop diversity and its impact on long-term sustainability.

The Green Revolution was a game-changer in agriculture and its related activities. It generated employment, made countries self-sustained, introduced modern technologies, and several others. But there were certain challenges also which cannot be overlooked. Therefore, it is important to have a more realistic and environmentally sustainable approach for making agricultural production.

Also Read: Essay on Beat Plastic Pollution for School Students

Ans: The Green Revolution was the period of agricultural transformation where modern approaches were introduced for high-yielding crop varieties, advanced agricultural technologies, and improved management practices. The real game changer was Norman Borlaug, who developed high-yielding varieties of wheat that were resistant to diseases, adapted to different climates, and responsive to fertilizers. His efforts earned him the title of ‘Father of the Green Revolution.’

Ans: M.S. Swaminathan is the father of the Green Revolution in India.

Ans: The Green Revolution refers to agricultural transformation by the introduction of high-yielding crop varieties. M.S. Swaminathan introduced the Green Revolution in 1965. On the other hand, the White Revolution refers to the production of milk and other dairy products. Verghese Kurian is regarded as the father of the White Revolution in India.

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Shiva Tyagi

With an experience of over a year, I've developed a passion for writing blogs on wide range of topics. I am mostly inspired from topics related to social and environmental fields, where you come up with a positive outcome.

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WhatsApp working on new feature for iPhone users, might let you customise chat bubble colour

Whatsapp is reportedly working on a new feature that will let iphone users customise the colour of the chat bubbles within the app..

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• WhatsApp is reportedly working on a new feature
• iPhone users can customise the colour of chat bubbles
• The feature is still in the experimental phase

WhatsApp has introduced a number of new features for iPhone users recently, including passkey support and a green theme overall. And now, the instant messaging platform might just have taken a step further to give more customisation options to iOS users. A recent report in WA Beta Info says that WhatsApp is working on a feature that would let users customise the colour of the chat bubbles.

Initially hinted at five months ago when discussing the ability to choose the app’s primary branding colour, this feature is still in the experimental phase. A screenshot shared by the publication showed a blue coloured chat bubble in WhatsApp for iPhone users. Although the blue colour shown is for testing purposes and not finalised, it showcases WhatsApp's efforts to expand the colour options beyond the traditional green, adding a personal touch to the user interface.

The report added that users will be able to choose from a predefined set of colours for their chat bubbles. This selection process will be designed to ensure that all chosen colours maintain readability, adhering to colour accessibility standards necessary for clear and comfortable conversation viewing.

The demand for such customisable features has been strong amongst users, many of whom have expressed the desire to tailor the look of their chat bubbles to better match their personal style and preferences. This upcoming feature will enhance the overall user experience by allowing greater visual customisation of the chat interface.

Even though WA Beta Info is a reliable source for WhatsApp news, we would advise you to take this information with a pinch of salt as WhatsApp hasn't officially talked about the feature yet.

Meanwhile, WhatsApp had recently changed its colour scheme for iOS users to a green-themed one instead of the traditional blue. The change began rolling out in February, but last month, users in India also received the new update. Users started sharing their opinions about WhatsApp's new look on X, and they did not really love the new visual experience.

While on Android devices, WhatsApp had always had a green interface, the colour used to be a vibrant blue in iPhones. Right from the status bar to the chat-list window, everything went through a design change. In addition to the icons, even the links that are shared within the app have a green colour to them instead of the usual blue.

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Solar Storm Intensifies, Filling Skies With Northern Lights

Officials warned of potential blackouts or interference with navigation and communication systems this weekend, as well as auroras as far south as Southern California or Texas.

By Katrina Miller and Judson Jones

Katrina Miller reports on space and astronomy and Judson Jones is a meteorologist.

A dramatic blast from the sun set off the highest-level geomagnetic storm in Earth’s atmosphere on Friday that is expected to make the northern lights visible as far south as Florida and Southern California and could interfere with power grids, communications and navigations system.

It is the strongest such storm to reach Earth since Halloween of 2003. That one was strong enough to create power outages in Sweden and damage transformers in South Africa.

The effects could continue through the weekend as a steady stream of emissions from the sun continues to bombard the planet’s magnetic field.

The solar activity is so powerful that the National Oceanic and Atmospheric Administration, which monitors space weather, issued an unusual storm watch for the first time in 19 years, which was then upgraded to a warning. The agency began observing outbursts on the sun’s surface on Wednesday, with at least five heading in the direction of Earth.

“What we’re expecting over the next couple of days should be more significant than what we’ve seen certainly so far,” Mike Bettwy, the operations chief at NOAA’s Space Weather Prediction Center, said at a news conference on Friday morning.

For people in many places, the most visible part of the storm will be the northern lights, known also as auroras. But authorities and companies will also be on the lookout for the event’s effects on infrastructure, like global positioning systems, radio communications and even electrical power.

While the northern lights are most often seen in higher latitudes closer to the North Pole, people in many more parts of the world are already getting a show this weekend that could last through the early part of next week.

As Friday turned to Saturday in Europe, people across the continent described skies hued in a mottling of colors.

Alfredo Carpineti , an astrophysicist, journalist and author in North London, saw them with his husband from the rooftop of their apartment building.

“It is incredible to be able to see the aurora directly from one’s own backyard,” he said. “I was hoping to maybe catch a glimpse of green on the horizon, but it was all across the sky in both green and purple.”

Here’s what you need to know about this weekend’s solar event.

How will the storm affect people on Earth?

A geomagnetic storm watch or warning indicates that space weather may affect critical infrastructure on or orbiting near Earth. It may introduce additional current into systems, which could damage pipelines, railroad tracks and power lines.

According to Joe Llama, an astronomer at Lowell Observatory, communications that rely on high frequency radio waves, such as ham radio and commercial aviation , are most likely to suffer. That means it is unlikely that your cellphone or car radio, which depend on much higher frequency radio waves, will conk out.

Still, it is possible for blackouts to occur. As with any power outage, you can prepare by keeping your devices charged and having access to backup batteries, generators and radio.

The most notable solar storm recorded in history occurred in 1859. Known as the Carrington Event, it lasted for nearly a week, creating aurora that stretched down to Hawaii and Central America and impacting hundreds of thousands of miles of telegraph lines.

But that was technology of the 19th century, used before scientists fully understood how solar activity disrupted Earth’s atmosphere and communication systems.

“That was an extreme level event,” said Shawn Dahl, a forecaster at NOAA’s Space Weather Prediction Center. “We are not anticipating that.”

Unlike tornado watches and warnings, the target audience for NOAA’s announcements is not the public.

“For most people here on planet Earth, they won’t have to do anything,” said Rob Steenburgh, a space scientist at NOAA’s Space Weather Prediction Center.

The goal of the announcements is to give agencies and companies that operate this infrastructure time to put protection measures in place to mitigate any effects.

“If everything is working like it should, the grid will be stable and they’ll be able to go about their daily lives,” Mr. Steenburgh said.

Will I be able to see the northern lights?

It is possible that the northern lights may grace the skies this week over places that don’t usually see them. The best visibility is outside the bright lights of cities.

Clouds or stormy weather could pose a problem in some places. But if the skies are clear, even well south of where the aurora is forecast to take place, snap a picture or record a video with your cellphone. The sensor on the camera is more sensitive to the wavelengths produced by the aurora and may produce an image you can’t see with the naked eye.

Another opportunity could be viewing sunspots during the daytime, if your skies are clear. As always, do not look directly at the sun without protection. But if you still have your eclipse glasses lying around from the April 8 event, you may try to use them to try to spot the cluster of sunspots causing the activity.

How strong is the current geomagnetic storm?

Giant explosions on the surface of the sun, known as coronal mass ejections, send streams of energetic particles into space. But the sun is large, and such outbursts may not cross our planet as it travels around the star. But when these particles create a disturbance in Earth’s magnetic field, it is known as a geomagnetic storm.

NOAA classifies these storms on a “G” scale of 1 to 5, with G1 being minor and G5 being extreme. The most extreme storms can cause widespread blackouts and damage to infrastructure on Earth. Satellites may also have trouble orienting themselves or sending or receiving information during these events.

The current storm is classified as G5, or “extreme.” It is caused by a cluster of sunspots — dark, cool regions on the solar surface — that is about 16 times the diameter of Earth. The cluster is flaring and ejecting material every six to 12 hours.

“We anticipate that we’re going to get one shock after another through the weekend,” said Brent Gordon, chief of the space weather services branch at NOAA’s Space Weather Prediction Center.

Why is this happening now?

The sun’s activity ebbs and flows on an 11-year cycle, and right now, it is approaching a solar maximum. Three other severe geomagnetic storms have been observed so far in the current activity cycle, which began in December 2019, but none were predicted to cause effects strong enough on Earth to warrant a watch or warning announcement.

The cluster of sunspots generating the current storm is the largest seen in this solar cycle, NOAA officials said. They added that the activity in this cycle has outperformed initial predictions .

More flares and expulsions from this cluster are expected, but because of the sun’s rotation the cluster will be oriented in a position less likely to affect Earth. In the coming weeks, the sunspots may appear again on the left side of the sun, but it is difficult for scientists to predict whether this will cause another bout of activity.

“Usually, these don’t come around packing as much of a punch as they did originally,” Mr. Dahl said. “But time will tell on that.”

Jonathan O’Callaghan contributed reporting from London.

An earlier version of this article misstated the radio frequencies used by cellphones and car radios. They are higher frequencies, not low.

How we handle corrections

Katrina Miller is a science reporting fellow for The Times. She recently earned her Ph.D. in particle physics from the University of Chicago. More about Katrina Miller

Judson Jones is a meteorologist and reporter for The Times who forecasts and covers extreme weather. More about Judson Jones

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