India Must Prioritise Investment In Grid Infra, Critical Minerals To Boost Renewables: Survey

New Delhi: India must prioritise investment in extensive grid infrastructure improvements and secure sourcing of critical minerals to strengthen its renewable energy initiatives, suggested Economic Survey 2024-25.

The document tabled in Parliament on Friday noted that despite being one of the world’s lowest greenhouse gas emitters per capita, India has made notable strides in reducing the emissions intensity of its energy consumption.

This progress is largely due to the increased deployment of renewable energy sources alongside a suite of energy conservation measures, it also noted. Nonetheless, it stated that the growth of renewable energy faces substantial hurdles, particularly in energy storage technologies and the sourcing of critical minerals necessary for this transition. While alternative solutions such as green hydrogen present a viable option for the medium term, affordability issues remain a significant barrier to widespread adoption, it pointed out.

Furthermore, it stated that although nuclear energy could contribute to India’s energy mix, its expansion is impeded by a lack of a supportive ecosystem and the monopolistic nature of nuclear fuel supply chains.

Lessons learned from the experiences of developed economies underscore the risks of prematurely shutting down thermal energy sources without viable technological alternatives that ensure a stable energy supply, it pointed out.

The challenges in harnessing renewable energy at scale indicate that India will need to continue the efforts to maximise the efficiency of its existing fossil fuel resources in the medium term.

The advancement and deployment of low-emission thermal power technologies, including Advanced Ultra Super Critical (AUSC) power plants, will play a pivotal role in this transition. This AUSC power plant will reduce emissions by about 11 per cent compared to super-critical plants. Presently, given the resource endowments, coal cannot be neglected as a reliable and affordable source of energy for India’s development, it stated.

Lessons learnt from the experiences of developed economies caution against shutting down thermal energy without adequate technological alternatives that allow a stable energy supply, it pointed out.

India is uniquely positioned in terms of its growing energy requirements. India must decisively leverage its best resources, advanced technologies, and expertise to accelerate its journey toward becoming a developed nation by 2047 while ensuring a low-carbon pathway.