#1 Green Economy: Seven Shifts Shaping

Green Economy: As COP29 negotiations unfold amidst significant global shifts, including Donald Trump’s return to the US presidency and persistent conflicts in West Asia, India finds itself at a critical juncture. The challenge lies in pursuing a decarbonisation strategy that balances economic growth with climate commitments while ensuring inclusivity. Below is a question-and-answer guide on India’s approach to creating a resilient and green energy system.

What are the primary challenges India faces in its energy transition?

India’s power demand is expected to nearly double by 2031-32, with peak demand projected to reach approximately 370 GW. This surge necessitates strategic investments in energy infrastructure and the adoption of innovative business models. Monitoring enabling metrics that align with the realities of a warming climate is crucial to guide the nation’s sustainable growth.

How can decentralised energy systems contribute to the green transition?

Decentralised systems, such as Distributed Renewable Energy (DRE), hold immense potential for scalability and reliability. India’s goal to solarise 10 million households could add 30 GW of clean energy to the grid. However, high costs remain a barrier for lower-income groups, even with subsidies in place. Innovative approaches like community solar programs can bridge this gap, making renewable energy accessible to all.

Why is a shift from capex to opex models significant for India’s energy sector?

The transition from capital expenditure (capex) to operational expenditure (opex) models offers a sustainable way to promote clean energy adoption. Opex-based systems, such as pay-as-you-go solar power, allow utilities to provide energy services without imposing hefty upfront costs on consumers. These models are particularly relevant for encouraging energy efficiency, sustainable mobility, and cooling solutions.

How critical are climate-resilient investments for India?

Investments focusing on long-term climate resilience are essential given that over 80% of India’s population resides in climate-vulnerable districts. Building climate-proof infrastructure reduces macroeconomic risks while ensuring sustainable energy systems. Such resilience is a costeffective strategy to mitigate the adverse impacts of climate change.

What steps should India take to integrate into global clean energy supply chains?

India must avoid protectionist policies and instead aim to integrate into global supply chains for clean energy technologies like solar photovoltaics (PV) and green hydrogen. By fostering collaborative partnerships and adhering to a rules-based framework for energy security, India can strengthen its role in the global energy market.

What is the role of digitalisation in decarbonisation efforts?

Digitalisation enhances energy efficiency and system resilience by enabling smart energy management. Investments in technologies such as artificial intelligence, smart appliances, and meters can optimise energy flows. Transitioning from hardware-based to software-driven solutions will leverage India’s expanding internet penetration, making energy systems more adaptive and efficient.

How can the circular economy support India’s sustainability goals?

Adopting circular economy principles helps secure critical minerals and reduce waste. With solar waste expected to reach 600 kilotonnes by 2030, India must develop robust recycling systems to recover valuable resources. A circular approach also offers co-benefits, including improved air quality, urban sanitation, and energy security.

Why is consumer-centric financing pivotal for India’s energy transition?

Focusing on end-users is essential to democratise clean energy adoption. Access to green financing for initiatives like rooftop solar installations and electric vehicles empowers individuals while expanding the clean energy market. Aggregating small-scale projects into larger portfolios can further unlock investment opportunities, benefiting consumers and developers alike.

What is the broader vision for India’s green economy?

India’s energy transition is not merely a technological shift but a comprehensive transformation of its economic and environmental systems. By placing people at the heart of this transition, the nation can ensure inclusivity and shared prosperity. The coming decade represents a unique opportunity to redefine India’s approach to energy and climate resilience, paving the way for a sustainable future.