Towards Energy Independence

Understanding Energy Independence  

Energy independence, the ability to meet a nation’s energy needs domestically, has become a strategic imperative for India. As a rapidly developing economy with a burgeoning population, the country faces escalating energy demands. The reliance on fossil fuels for a significant portion of its energy mix poses substantial economic, environmental, and geopolitical risks. To mitigate these challenges and ensure a sustainable energy future, India is prioritising the development of domestic energy resources and technologies.  

Growing Energy Demand and Rising Costs  

India’s burgeoning population is driving a surge in energy demand. With a population exceeding 1.4 billion, the country’s energy consumption has skyrocketed, increasing by 8 percent between 2023 and 2024. This rapid growth has placed enormous strain on India’s energy infrastructure, which heavily relies on fossil fuels. Fossil fuel prices have surged in recent years, with oil prices reaching an average of $83-90 per barrel in 2024, a stark contrast to the $61 average in 2009. Coal and natural gas prices have followed a similar upward trend, driven by geopolitical tensions and market volatility. Moreover, the world's fossil fuel reserves are depleting rapidly. 

Fortunately, India's power sector has undergone a dramatic transformation since 2017. Once heavily reliant on coal, the nation is now spearheading a renewable energy revolution, with solar power at its core. The 14th National Electricity Plan (NEP14) underscores this shift, outlining an ambitious blueprint to double electricity generation capacity by 2032, with solar energy as a pivotal catalyst.

Solar Energy as a Sustainable Solution

The unchecked combustion of fossil fuels is a primary driver of climate change. These fuels release vast quantities of greenhouse gases that trap heat, leading to global warming and its devastating consequences. India, as the world's third-largest carbon emitter, contributed significantly to these emissions in 2024, releasing approximately 2.9 billion tonnes of carbon dioxide. The repercussions are far-reaching, manifesting in compromised ecosystems.

Solar energy has emerged as a promising solution to the challenges posed by fossil fuels. With a remarkable 93 percent decline in solar photovoltaic module costs over the past decade, solar power has become increasingly competitive. India has embraced this renewable energy source with enthusiasm, aiming to expand its solar capacity from 85 GW in 2024 to 366 GW by 2032, accounting for approximately half of the overall growth in electricity generation.  

By harnessing the sun's abundant power, India stands to offset electricity costs and significantly reduce carbon emissions. This clean, renewable technology is driving a paradigm shift towards a greener and more resilient planet.

Realising the solar energy vision necessitates a robust domestic manufacturing ecosystem. Currently reliant on imports for solar modules and raw materials, India is actively addressing this challenge. Initiatives like the Production Linked Incentive (PLI) scheme and the SPECS programme are stimulating local manufacturing. Concurrently, the government is investing heavily in upgrading the grid infrastructure to accommodate the variable nature of renewable energy, with a US$35 billion package dedicated to strengthening the interstate transmission network. To further bolster the sector, the Reserve Bank of India has prioritised financing for renewable energy projects.

Economic Benefits and Job Creation

The expansion of solar energy infrastructure is driving significant economic growth. Beyond job creation, the development of solar farms and associated industries is fostering a circular economy through the recycling of solar panels and the establishment of sustainable supply chains. Moreover, the growing trend of residential solar installations is driven by consumers seeking to reduce electricity costs and support green energy initiatives. 

Looking Ahead

India is rapidly transitioning to a solar-powered future. With an ambitious target of 500 GW of renewable energy by 2030, solar power is at the core of this transformation. The government's commitment to solar energy is evident in initiatives like the National Solar Mission coupled with supportive policies and financial incentives. India's abundant solar resources, coupled with declining technology costs, present a compelling opportunity to address the nation's growing energy demands sustainably. By investing in solar infrastructure, India can enhance energy security, mitigate environmental impacts, and stimulate economic growth. Looking ahead, solar energy offers a viable pathway to a more resilient energy future and is set to play a pivotal role in India’s quest for energy independence. 

(Gyanesh Chaudhary is the CMD of Vikram Solar.)