Challenges in the green energy transition

Source: The post challenges in the green energy transition has been created, based on the article “From Uttarakhand to Wayanad: Balancing realpolitik with green transition” published in “Indian Express” on 7th August 2024

UPSC Syllabus Topic: GS Paper 3-infrastructure-energy

Context: The article discusses India’s green energy transition. It highlights the varying state-led transitions, the conflict between green energy drivers and trade policy, and the tension between governance and sustainable development ethics. It emphasizes the need for collaboration and long-term investment.

For detailed information on India’s plans for energy transition read Article 1, Article 2

What is the Current State of India’s Green Energy Transition?

1. India aims to meet 50% of its energy needs from renewables by 2030.
2. The Ministry of New and Renewable Energy (MNRE) plans to install 500 GW of renewable energy by 2030.
3. In 2023, MNRE exceeded its target by 25%, bidding out 50 GW of solar capacity.
4. Collaboration between MNRE, the Ministry of Power, and regulatory agencies like Central Electricity Authority (CEA); Central Electricity Regulatory Commission (CERC); Central Transmission Utility (CTU); and Power System Operation Corporation Ltd (POSCO) have improved.
5. Challenges include inadequate transmission connectivity and a need for long-term green finance.

What are the challenges in the green energy transition?

1. State-Level Variations: States like Telangana and Tamil Nadu are advancing quickly due to favorable policies and industries, while Rajasthan struggles financially, slowing its progress.
2. Transmission Connectivity: Inadequate infrastructure hampers the distribution of renewable energy.
3. Energy Storage: Grid-scale energy storage is essential but remains expensive and technologically challenging.
4. Green Finance: There is a lack of long-term investment. Most investors seek profits within 6-7 years, but a 25-year horizon is needed.
5. Trade Policy Dilemmas: Cheap Chinese solar panels could accelerate the transition but pose national security risks due to over-dependence.

What Should be Done?

1. Global Cooperation: Climate change requires global solutions, yet national interests often conflict. For instance, India’s trade and climate policies need alignment to balance sustainability, security, and growth.
2. Effective Governance: Climate change causes severe issues like forest fires in Uttarakhand and landslides in Wayanad, highlighting the urgency of effective governance.

Question for practice:

Discuss the challenges and proposed solutions in India’s green energy transition.