May 18 2017

In 2050, India will achieve reliable, economically competitive and environmentally sustainable electricity system, addressing the energy security and environmental strains.

In past few years, India has achieved an impressive growth in adding renewable energy generation. Efforts have been made to alleviate the long standing problems like power shortages, rural electrifications, poor distribution companies (Discom) financial health and non performing energy assets through various policy interventions. However the current penetration of renewable energy is low about 15% of total energy supply. The energy supply spectrum largely entails coal (about 50%) followed by oil and gas. It is envisaged that in 2050, India will have an annual energy demand of about 14,500 TWh per year (with a moderate CAGR of 6.7% till 2050). Largely the demand will be from industry sector followed by transportation and buildings. In the absence of paradigm shift towards the low carbon alternatives, the dependence on fossil fuel will increase, causing a serious threat to nation’s energy security and GHG emissions in future.

With determined efforts by the policy makers, India can overcome barriers to enable investment in clean and sustainable energy supply options. In 2050, India will achieve reliable, economically competitive and environmentally sustainable electricity system, addressing the energy security and environmental strains. A couple of trends under current energy sector reforms are converging to create game-changing disruptions like electrification of large energy intensive sectors coupled with accelerated renewable energy capacity addition, parallel efforts to strengthen electricity supply to underserved and un-served through integration of grid and distributed renewable energy, adoption of emerging storage technologies to increase the grid appetite to accommodate intermittent sources and enabling cost optimization through the best use of automation and communication analytics.

Electrification of large energy intensive sectors coupled with accelerated RE capacity addition

Clean energy is India’s top priority to meet the global commitment under INDC (Intended Nationally Determined Contribution) to meet the target of reducing GDP emission intensity by 35%. The reduction is to be made by 2030 considering 2005 as a base data. With an aggressive chase of INDC targets on renewable energy capacity addition, India can have more than 50% of electricity generated from renewable source, leading the global renewable energy generation in 2050. India is eyeing towards massive electrification of its energy intensive sectors, the majority of which in 2050 will be seen to be supplied from renewable sources like solar and wind. Ongoing efforts towards greening the passenger & freight transportation by railways and an ambitious plan to electrify the entire road transportation by 2030, indicates that the second most energy intensive sector- Transportation is targeted. A mammoth pipeline is to be built in coming years to reach the target of 100GW by 2022.