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Source: The post India’s plans for energy transition has been created, based on the article “For clean energy, govt rolls: OUT POWER TOOLS” published in “Live Mints” on 24th July 2024
UPSC Syllabus Topic: GS Paper 3-infrastructure-energy
Context: The article discusses India’s plans for a balanced energy transition, including policies for green finance, renewable energy projects, thermal power, and industry regulations. It highlights initiatives to boost green energy, develop carbon markets, and support small businesses in adopting cleaner energy.
For detailed information on Energy Transition In India read this article here
What are India’s plans for energy transition?
- Balanced Approach: India aims to balance employment, growth, and environmental sustainability in its energy transition.
- Non-Fossil Power Goals: The government targets 500 GW of installed non-fossil power capacity by 2030.
- Coal-Based Power: To meet near-term demand, India plans to add about 80 GW of coal-based power generation capacity by 2032.
- Green Finance Taxonomy: The finance ministry, with the Ministry of New and Renewable Energy (MNRE), will develop a taxonomy for climate finance. This will enhance the availability of capital for climate adaptation and mitigation.
- Support for Renewable Energy: The taxonomy will support the development of the market for green bonds, funding renewable energy, battery storage, and sustainable technologies.
- Rooftop Solar Installation: The PM Surya Ghar scheme will set up rooftop solar installations on 10 million houses.
- Customs Duty Exemptions: The budget exempts customs duty on solar capital goods but does not exempt solar glass and copper interconnects.
- Advanced Thermal Plant: An 800 MW advanced ultra-supercritical (AUSC) thermal plant will be developed by NTPC and Bhel.
- Pumped Storage Projects (PSP): A policy for PSP will support electricity storage and smooth integration of renewable energy, maintaining grid stability.
- Hard-to-Abate Industries: The government will move industries like steel and cement from energy efficiency targets to emission targets. The India carbon market (ICM) will launch in 2026, aiming to be the world’s largest emissions trading system by 2030.
- Support for MSMEs: Investment-grade energy audits and financial support will help traditional micro and small industries shift to cleaner energy, starting with 60 clusters and extending to 100 in the second phase.
Question for practice:
Examine the key components of India’s strategy to support renewable energy through green finance and policy initiatives.
