Contents
Introduction
According to the IEA (2024), Indo-Pacific nations face the fastest-rising energy demand globally. The Australia-India clean energy partnership offers a strategic opportunity to build a resilient, diversified, and sustainable regional clean energy ecosystem.
Context and Strategic Significance
- The India-Australia Renewable Energy Partnership (REP), launched in 2023, aims to enhance cooperation across solar, hydrogen, energy storage, and critical minerals.
- It builds upon frameworks like the Quad Clean Energy Supply Chain Initiative and aligns with SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action).
- Both nations face common vulnerabilities, climate change impacts and supply chain dependence on China, which refines 90% of rare earths and manufactures 80% of global solar modules.
- By diversifying this dependency, the partnership strengthens the Indo-Pacific’s strategic autonomy and energy security architecture.
Australia’s Resources: The Resource Powerhouse
Australia holds nearly 45% of global lithium reserves, along with significant deposits of cobalt, nickel, and rare earths. Yet, it exports most raw materials without refining.
- Potential Role: Develop downstream processing hubs in collaboration with India. Joint R&D on refining technologies and battery storage solutions. Support India’s National Green Hydrogen Mission (target: 5 MMT green hydrogen by 2030) with reliable input minerals. Example: The Critical Minerals Investment Partnership (2023) aims to supply lithium and cobalt for India’s EV and battery industries.
- Challenge: Australia’s current lack of large-scale refining capability risks reinforcing its “extractive dependency,” necessitating joint industrial ecosystems.
India’s Workforce: The Human Capital Advantage
India, with 65% of its population below 35, possesses a demographic dividend ready for green skill deployment.
Strengths:
- Skill India Mission and Green Jobs Initiative can produce over 1 million renewable energy technicians by 2030 (ILO, 2023).
- Production Linked Incentive (PLI) Schemes encourage domestic manufacturing of solar PV modules and batteries.
- India’s renewable capacity already reached 500 GW of non-fossil capacity by 2025, five years ahead of target.
Potential Role:
- Act as a manufacturing and deployment hub for clean energy technology.
- Provide skilled manpower for installation, operation, and maintenance across the Indo-Pacific. Example: Indian firms like ReNew Power and Adani Green Energy are exploring collaborations with Australian firms in solar and hydrogen infrastructure.
Building a Resilient Regional Ecosystem
A resilient Indo-Pacific clean energy ecosystem requires regional diversification, value addition, and innovation.
- The Track 1.5 Dialogue under REP brings together policymakers, industries, and academia for technology co-creation.
- Joint investments in Green Hydrogen Corridors and Battery Supply Chain Hubs can reduce dependency on China and enhance regional self-reliance.
- ASEAN and Pacific Island nations can benefit from the spillover effects—capacity building, knowledge transfer, and access to affordable clean technology.
Challenges and the Way Forward
- Policy Asymmetry: Regulatory misalignment and investment barriers between the two nations.
- Financing Constraints: Clean energy projects require long-term concessional financing and carbon pricing mechanisms.
- Geopolitical Sensitivity: Balancing ties with China while building an alternate energy network under Quad and IPEF.
Way Forward:
- Establish an Indo-Pacific Clean Energy Fund for project financing.
- Institutionalize joint R&D centers under REP.
- Promote circular economy principles to recycle rare earths and minimize waste.
Conclusion
As Amartya Sen’s Development as Freedom reminds us, sustainable development empowers people and nations. A robust India-Australia clean energy partnership can anchor equitable, secure, and climate-resilient regional growth.
