A radical transition

While the country has traditionally focused on service-based industries, the rising demand for clean energy solutions highlights the need for greater self-reliance and energy independence. It’s clear we are steadily transitioning towards greener energy sources

India is at a crucial juncture in its economic and energy transition journey, and strengthening domestic manufacturing capabilities is essential. While the country has traditionally focused on service-based industries, the growing need for clean energy solutions like electrolysers, solar PV panels, and battery storage systems calls for self-reliance. Reducing dependence on global suppliers, particularly from countries like China and Germany, will enhance India’s energy security and boost its position in the global market. 

A key challenge in this transition is the availability of critical minerals required for emerging technologies. With limited domestic reserves, India must secure mineral rights through strategic international collaborations while adopting circular economy practices such as lithium-ion batteries and solar PV recycling. These measures can help mitigate resource constraints and reduce environmental impact. 

Accelerating the transition away from fossil fuels

The country is making significant strides toward reducing its dependence on fossil fuels through a multi-pronged approach aligned with its nationally determined contributions (NDCs) under the UN climate framework. According to Jayant Sinha, three key policies drive the energy transition: the National Biofuels Policy, the National Green Hydrogen Policy, and the National Electric Vehicle (EV) Policy.

“These three are important pathways. Additionally, accurate monitoring of energy demand is crucial to optimise resources and generate energy efficiently,” says Sinha. India has already achieved a renewable energy capacity of approximately 210 GW, with ongoing solar, wind, and bioenergy projects contributing further.

Jayant Sinha emphasises the role of data and digital technologies in accelerating the transition. “Technology interventions for real-time data monitoring are essential. Renewable energy obligations also ensure compliance, gradually reducing the reliance on fossil-based energy.”

Sanjeev Prasad acknowledges that the pace of transition may face challenges. “While initial expectations were for a rapid shift, factors like generation variability have moderated that outlook. Fossil fuels may still play a role until scalable energy storage solutions are fully implemented.” He notes that the government is promoting battery storage systems with a proposed four-hour storage capacity, though wider adoption remains slow.

“Most industrial users rely on solar during the day, but support is needed during nighttime hours,” says Prasad. “Hydrogen has the potential to become a transformative fuel source, driving long-term reductions in fossil fuel dependency.” He envisions hydrogen playing a critical role in future energy systems. Electric vehicles are also expected to contribute significantly to the transition. Jayant Sinha suggests promoting daytime EV charging using solar power could further reduce fossil fuel reliance.

Additionally, Sanjeev Prasad highlights the importance of digital integration in grid management. “While digitisation has improved data access, comprehensive integration remains incomplete. Real-time data collection and predictive analytics will enhance grid stability and enable a smoother transition.”

Both experts agree that fossil fuel reliance may reduce to around 30 percent in the foreseeable future, but achieving a full transition will require advancements in hydrogen technology and energy storage. India is steadily advancing toward a low-carbon energy future through strategic policy implementation and technological innovation.

Policies and technologies driving RE transition

The renewable energy transition is driven by policies like the National Solar Mission, Green Hydrogen Policy, and Production-Linked Incentive (PLI) scheme. Technological advancements in solar, wind, energy storage, and smart grids, supported by digitalisation, AI, and IoT, are enhancing grid management. This is accelerating clean energy adoption and ensuring energy security.

Shirish Garud emphasises the crucial role of policies in attracting investments and setting the direction for renewable energy growth. “Policy will play an important role, but modernisation of the electricity grid is equally essential,” he notes. The shift from centralised to decentralised power generation, including small-scale rooftop solar installations, demands advanced grid control and safety mechanisms. Garud highlights the need to integrate AI and data analytics to monitor and manage the vast influx of data from renewable sources. “Modern technologies like AI can analyse real-time data, offering actionable insights for efficient grid management,” he says.

Garud points out emerging carbon capture and utilisation (CCU) technologies to address the continued reliance on coal. “For instance, NTPC’s carbon capture initiatives convert CO2 into aviation fuel or ammonia, creating a circular carbon economy,” he explains. He also called for greater industrial participation in homegrown technology development, lamenting the tendency of Indian companies to adopt foreign-tested technologies. “Our industries should invest in R&D and trust domestic innovations to stay competitive,” he adds.

Jayant Sinha underscores the importance of effective policy implementation. “Formulating policies is one thing, but ensuring seamless execution is critical,” he remarks. Jayant Sinha also stresses the need for green financing to drive renewable projects. “There are numerous projects stalled due to lack of green financing. Building confidence among green financiers and providing robust validation of business plans are essential steps.” Furthermore, Jayant Sinha advocates for greater consumer awareness and stakeholder engagement to support financing and implementation. “Financiers and consumers must understand the ecosystem to enable successful project execution,” he concludes.

Grid frequency management challenges

Managing grid frequency presents challenges with the increasing share of renewable energy. Though power plants receive dispatch schedules to match generation with predicted demand, the variability of solar power complicates frequency control.

Sanjiv Prasad highlights, “If there is higher generation and lower demand, the frequency and voltage increase. Balancing this is difficult as most generators are reluctant to reduce output, given financial constraints.” Hydropower, when available, often adjusts to stabilise the grid. Despite efforts, the grid frequency recently touched 50.4 Hz several times, prompting regulatory intervention.

Shirish S. Garud emphasises the government’s pivotal role in establishing regulations and policies to drive energy transition. He highlights how the 2010 National Solar Mission accelerated solar sector growth, initially targeting 20 GW of solar capacity by 2022. “The target was revised to 100 GW by 2022, providing long-term market visibility and attracting investments,” Garud says.

He further explained that international commitments to carbon reduction enhanced investor confidence. Government policies create an enabling environment for private sector investments, especially for emerging technologies like energy storage and green hydrogen,” he adds.

Furthermore, the government’s Production-Linked Incentive (PLI) scheme supports industries in achieving product efficiency and innovation. Additional measures, such as waiving interstate transmission charges for renewable electricity, foster further investments. “These comprehensive efforts are essential for India’s decarbonisation and clean energy transition,” Garud concludes.

Ensuring grid stability efficiently

Jayant Sinha accurately redefines base load generation as India transitions from centralised to decentralised power generation. “Base load generation is crucial as system operators like Grid Controller of India rely on dispatch schedules and generation estimates to maintain grid stability,” he states.

Highlighting the role of technology, Sinha shares, “Energy Command Centers are increasingly employing AI and ML algorithms to predict future demand, enabling proactive grid management.” Additionally, he underscores the significance of Availability-Based Tariff (ABT) meters, which monitor grid data to ensure generators comply with operational regulations. Through ABT meters, unscheduled interchange (UI) charges are imposed on generators violating dispatch schedules, maintaining grid discipline,” he explains.

Sinha further stresses the role of demand-side management in grid stability. “Large consumers are incentivised to reduce non-essential loads when grid frequency exceeds 50.3 Hz, promoting energy efficiency without compromising productivity,” he notes. This collaborative approach ensures effective load management during high-frequency scenarios.

“Enhanced predictive monitoring, using real-time grid data and advanced algorithms, is critical,” Sinha asserts. He advocates for the integration of forecasting and modelling tools to strengthen decision-making. By combining technological advancements with regulatory compliance and consumer participation, India can ensure reliable, stable, and efficient grid operations amid the growing adoption of renewable energy.

Reducing supply chain vulnerabilities

Shirish Garud, a prominent energy expert, emphasises the need to develop domestic refining capacities to mitigate supply chain vulnerabilities. With the increasing demand for critical minerals essential for energy storage, hydrogen technologies, and advanced solar photovoltaics (PV), reliance on imports poses a significant challenge.

“All new technologies require rare earth materials and minerals, which are neither easily available nor abundantly accessible in India,” Garud notes. “China has strategically acquired mining rights globally, securing its resource supply. India must adopt a similar approach through government-backed collaborations to ensure material availability.” India’s mineral policy is a step in this direction, facilitating partnerships with foreign governments for mining rights to secure essential resources. Additionally, adopting circular economy principles can further bolster domestic resource availability.

“Circular economy practices, particularly in the lithium-ion battery sector, are gaining momentum. Extracting and reusing materials from end-of-life batteries can significantly reduce import dependence,” Garud explains. He adds that recovering lithium and other valuable elements through chemical processing curbs pollution and ensures a sustainable material supply. Similarly, recycling solar PV modules presents a valuable opportunity. Solar panels often see a decline in efficiency after their operational lifespan of 20-25 years. Garud highlights that recycling these modules can recover materials for producing new panels. “Government support for PV module recycling initiatives can reduce waste and foster a circular supply chain. However, developing cost-effective and scalable recycling technologies remains crucial,” he adds.

Furthermore, establishing a competitive and self-sufficient energy ecosystem requires strengthening domestic manufacturing through initiatives like the Production-Linked Incentive (PLI) scheme. This scheme supports the local production of solar PV modules and batteries, encouraging technological advancements and increasing manufacturing capacities.

“The challenge is maintaining competitiveness against global products, particularly from China, which commands 95 percent of the global solar module manufacturing market,” Garud remarks. While domestic content requirements (DCR) for public sector procurement ensure a market for local products, achieving sufficient scale for self-reliance demands greater industry investment. “We must strategically expand our production capacity to meet at least 40 percent of our domestic needs while exploring export opportunities in regions like Europe and the USA,” Garud suggests. With global players seeking to reduce reliance on single-country suppliers, India’s growing manufacturing capabilities present an opportunity to become a reliable alternative in the global supply chain.

India can effectively reduce supply chain vulnerabilities and establish a resilient energy ecosystem through international collaborations, circular economy practices, and robust domestic policies.

India’s growth must be inclusive and equitable, ensuring benefits are not limited to specific industries or regions. A balanced distribution of development will enhance all citizens’ quality of life. India has abundant resources, knowledge, and talent to lead the global sustainability agenda. By strategically utilising these assets, the country can drive its energy transition while contributing to a sustainable future for the world.