Today, the world is grappling with one of the most critical problems i.e. global warming. The rapid global economic development since 1950 till now entailed similar energy consumption growth during that period. To meet the huge energy demand for the economic development, the world relied heavily on fossil fuels which when used to produce energy emit greenhouse gases in the form of carbon-di-oxide (CO2). The world economy grew from approximately USD 1 trillion to USD 90 trillion over the said period. Reflecting the linkage between CO2 emission and economic development, global energy related CO2 emission increased from approximately 5 billion tonnes in 1950 to 36 billion tonnes at present. The outcome of the excessive CO2 emission is the present scale of global warming which is 1.2 ◦C with respect to pre-industrial levels. It is expected that the global warming will increase to 1.5 ◦C in 2030.
Global concern on climate change manifested in Paris Agreement in 2015. The Paris Agreement set an objective to limit global warming to well below 2 ◦C and preferably 1.5 ◦C from pre-industrial levels. Being a party to Paris Agreement, India announced its commitments to achieve climate objectives. It announced to achieve net zero emission by 2070 at United Nations Climate Change Conference of Parties (COP26) in Glasgow, Scotland in 2021. It also set following near terms goals to be achieved by 2030 consistent with its long-term objective to achieve net zero emission.
i) India’s non-fossil energy capacity will increase to 500 GW (Giga Watt) by 2030.
ii) 50% of India’s installed electricity capacity will come from renewable sources by 2030.
iii) Carbon intensity of India’s economy shall reduce by more than 45% by 2030.
iv) India’s total projected CO2 emissions shall reduce by 1 billion tonne from 2021 till 2030.
Achieving the above targets would be in India’s best interest apart from fulfilling its obligations as a party to Paris Agreement. Presently, India meets approximately 90% of its energy requirement from fossil sources i.e. oil, natural gas and coal. Coal is the single largest contributor meeting approximately 55% of India’s total energy demand. Coal is also the largest source of CO2 emission per unit of energy content among the fossil fuels. Today, the world emits 36 billion tonnes of energy related CO2 and India contributes to 7% of it reflecting its fossil-dominated energy-mix.
India consumes the fossil fuels much more than what it produces thus relying heavily upon their imports. India meets approximately 85% of its oil consumption through imports. Similarly, it meets about 50% of its natural gas consumption and almost 20% of its coal consumption through imports. This means any supply constraints due to geo political disturbances or otherwise not only impact its energy sourcing but also the energy prices. Only possible way to reduce dependence on imports of fossil fuels on one hand and achieve its emission reduction targets on the other is to accelerate its clean energy transition pace. This necessitates to increase the share of renewable sources in India’s energy-mix. Also, it gives economic benefits as solar and wind are one of the cheapest energy sources to generate electricity in India. Levelized cost of electricity from solar and wind sources is the lowest among all other main sources (Table 1), which could provide a key advantage to India’s economy by bring down energy prices.
Table 1: Levelized Cost of Electricity (LCOE) in India
| Source of Electricity | LCOE USD/MWH | LCOE INR/Unit |
| Nuclear | 70 | 5.25 |
| Coal | 55 | 4.15 |
| Gas CCGT | 90 | 6.75 |
| Solar PV | 35 | 2.65 |
| Wind | 50 | 3.75 |
Notes:
1. LCOE in INR/Unit is obtained from LCOE in USD/MWH considering USD 1=INR 75
2.CCGT=Combined Cycle Gas Turbine, PV=Photovoltaics, MWH=Mega Watt-Hour, USD=US Dollar, INR=Indian Rupee, 1 Unit=1 Kilo Watt-Hour
Source: International Energy Agency (IEA) World Energy Outlook 2021
Thus, acceleration of India’s pace of clean energy transition could provide much needed energy security by reducing its dependence on imports of fossil fuels; help achieve sustainable development goals by way of increased share of clean and affordable energy in total energy-mix; and fulfil its commitment to achieve net zero through reduction of CO2 emissions from energy use.
About Author: Satyendra Kumar Singh, B.Tech. (Chemical Technology) + M.B.A., is proprietor of Satsha Management Services-an award winning design engineering and management consulting company (www.satshamanagement.com). He possesses approximately 30 years’ experience in engineering consultancy in process and energy industries. Satyendra has authored several papers on energy, business and management, which have been published in some renowned journals/magazines such as ‘Chemical Engineering’, ‘Process Worldwide’, ‘Modern Manufacturing India’. He may be reached at satyendra.singh@satshamanagement.com, Ph. +919811293605.
