Growing economies such as India have an enormous opportunity to build energy independence and grow in a climate resilient manner, in the process creating a thriving corporate sector that best leverages these increasingly prominent global financial capital market priorities, and funding capacities, said a new report by Institute for Energy Economics and Financial Analysis (IEEFA).
According to IEEFA, as one of the growing large economies, India’s promising energy sector can make a major contribution to immediate and deep emissions reduction, said
The Intergovernmental Panel on Climate Change (IPCC), in its Working Group III report released last month cautioned the world that unless there are immediate and deep emissions reductions across all sectors, maintaining 1.5 degrees celsius is beyond reach.
The 1.5 degrees Celsius is the ideal target to keep the global temperature rise to below it as compared to pre-industrial era. India has made large strides in renewable energy, especially solar power.
Nonetheless, it has also insisted on continued use of coal to meet the energy needs of its large population. India’s net zero target is 2070.
“With rampant imported fossil fuel inflation, energy security is a key national priority. India is tackling climate change through ambitious domestic clean energy targets and bold policies and reforms to support them. Therefore domestic and international power sector players are rapidly scaling up Indian renewable infrastructure capacities and are preparing for the next wave of sectoral reforms,” the report’s author Shantanu Srivastava, energy finance analyst at IEEFA said.
The report, ‘IEEFA: India’s lead role in the new wave of energy sector growth’ said, the government is rolling out several “big bang” policies and reforms to accelerate the transition to a more resilient and sustainable energy economy while also harnessing investment, employment and import replacement opportunities. These include the green hydrogen and green ammonia policy, production-linked incentive (PLI) schemes in solar module and battery manufacturing, market based economic dispatch to democratise the electricity markets, general network access and green energy corridor schemes encouraging investment in the grid sector and private ownership through the National Monetisation Pipeline and the privatisation of distribution companies (discom).