The Multifaceted Challenge of Energy Transition

Source-This post on The Multifaceted Challenge of Energy Transition has been created based on the article “A one-way street to net-zero will put us in a jam of our own making” published in “Live Mint” on 27 August 2024.

UPSC Syllabus-GS Paper-3- Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Context – The article notes that the energy transition is often seen as switching to greener sources, but it’s much more complex.

What are the challenges with energy transition?

1) Securing and Integrating Green Energy- Securing and integrating green energy supplies into current systems is a complex and challenging process.

2) Managing Demand- Achieving net-zero emissions remains unfeasible if demand continues to outpace the growth of green energy supplies. The minor drop in fossil fuel use, from 78.5% in 2004 to 76.5% in 2023, highlights this ongoing challenge.

3) Bloomberg Report– High costs and difficulties for both buyers and sellers of alternative energy show that rapidly moving away from fossil fuels is a major challenge.

4) International Monetary Fund (IMF) Report– The report noted that new demands from AI data centers and crypto mining are worsening energy supply problems and hindering net-zero emissions goals.

5) Neglecting Overconsumption – The focus on green energy consumption often overlooks the core issue of overconsumption. Current approaches aim to maintain existing consumption levels with greener alternatives, rather than encouraging changes in consumption habits and lifestyles.
For ex- Electric vehicles need more minerals than traditional cars, which could boost energy use in mining and processing.

6) Lack of Emphasis on Individual and Collective Action– Western climate policies often prioritize technological solutions over individual and collective action, neglecting the significant impact that changes in personal behavior.

What are the steps taken by the Indian government?

The Indian government’s recent budget announcements include:

A) Promotion of nuclear energy.

B) Enhancement of thermal power plant efficiency.

C) Installation of rooftop solar panels in over 10 million households.

D) Setting emission targets for the industrial sector.

E) Development of pumped storage units to integrate more renewable energy and reduce dependence on imported critical minerals for battery storage.

Read More- Pumped Storage Projects

What should be the way forward?

1) Incentivizing Sustainable Energy Sources: Policies should promote energy sources that facilitate a low-carbon future without hindering development.

2) Individual Contributions: Small individual actions and awareness can significantly reduce emissions, including:

A) Adjusting air conditioner temperatures.

B) Using public transportation more.

C) Incorporating plant-based foods into diets.

D) Minimizing water wastage and maintaining cleanliness in local surroundings.

3) Public Transport – Public transportation is key to reducing energy consumption and emissions. While over 80% of urban residents in developed countries have easy access to public transport, only 37% do in India. India should invest in integrated, efficient, and accessible public transport systems to reduce energy intensity and achieve energy self-sufficiency.

4) Demand Management and Resource Efficiency – Demand-side policies should focus on reducing excessive resource use, like the high water and energy consumption of data centers. For ex-technologies such as AI and crypto mining use a lot of resources and should be taxed according to their consumption to promote responsible use.

Conclusion– India can set a strong example by creating policies that balance energy supply and demand, aligning with its developmental goals. By securing energy supplies and managing consumption, India can lead with strategies rooted in its values.

Question for practice

What challenges are associated with the energy transition? What steps should be taken next?