This article references a recent media report: "NITI Aayog launches study to evaluate shift to renewable energy sources." While this initiative by NITI Aayog is a positive step, it raises questions about the status of the National Energy Policy (NEP), a draft of which was released in 2017 but never finalized.
For such a study to be meaningful in a vast and diverse country like India, it must involve the active participation of all sectors of society at key stages of both deliberation and implementation. This includes critical engagement from key stakeholders. A major concern for civil society groups is the government's persistent reluctance to consult widely on issues of national importance, including with key stakeholder groups.
To be effective, this study must carefully consider the welfare of various communities from social, economic, environmental, and logistical perspectives. Many of these concerns are already visible, and recent national and international reports highlight the need for a holistic approach.
While evaluating the shift to renewable energy sources is a step in the right direction, it should ideally follow a comprehensive study of the associated policies and practices—something that could be achieved through a well-prepared National Energy Policy. Without a forward-looking national policy that integrates sustainable energy practices with long-term goals, this study may encounter several obstacles due to inconsistencies in related policies. A cohesive National Energy Policy would also help various states and agencies work together towards maximizing national benefits.
One of the major challenges in the transition to renewable energy is the financial cost. Projections suggest enormous expenses, such as: "India needs over a trillion dollars in 30 years to move away from coal mining and power," or "India requires ₹32 lakh crore investment in renewable energy by 2030." While these numbers appear intimidating, they may also be seen as alarmist, serving certain vested interests by failing to account for the economic benefits of renewable energy. Worse, they neglect the broader societal costs of continuing with conventional fossil fuel-based energy systems.
The large projected costs are often the result of an outdated approach, favoring centralized infrastructure such as expanding the national grid and building large power projects. In contrast, distributed renewable energy solutions—like rooftop solar, small and medium-sized wind turbines, community-based bioenergy, and battery storage systems (BESS)—offer a more cost-effective and sustainable path. These alternatives would reduce the financial burden on the government, involve prosumers, and significantly lower the need for costly transmission infrastructure.
Globally, there have been significant advancements in renewable energy transition. Recent examples include India’s 2 GW solar and storage tender, the U.S. grid adding battery capacity equivalent to 20 nuclear reactors, and BESS consumers generating over 100 MW of rooftop solar power in India. These developments underscore the vast potential of distributed renewable energy systems, which can address financial concerns while accelerating the transition to renewables and minimizing environmental impact.
For example, BESS technology can reduce or eliminate the need for large-scale pumped storage power plants, which can cause unacceptable environmental damage to rivers, forests, and biodiversity. Distributed renewable energy systems would also decrease the demand for additional transmission infrastructure.
In this broader context, the Indian government must also consider the following points:
- Why the U.S., despite having the largest nuclear power capacity, has prioritized BESS over building more nuclear plants.
- The role of BESS in minimizing the need for large pumped storage power plants, which carry significant environmental risks.
- How countries like Australia, France, and those in the Gulf region operate their grids with minimal reliance on hydroelectric power and pumped storage.
- The potential of distributed renewable energy systems to redeploy workers from fossil fuel-based industries.
- A mandated "cost-benefit analysis" of different energy technologies before deploying any capacity, even as small as 0.5 MW.
- The possibility of advancing India’s net-zero emission target from 2070 to 2050.
- How rooftop solar systems can accelerate the renewable energy transition.
- The societal benefits of transitioning to renewable energy, compared to the costs of maintaining the status quo.
It is also critical to emphasize that a transition to renewable energy cannot rely solely on switching to different sources like solar and wind. A holistic view is required, addressing energy efficiency, demand-side management, and conservation efforts to reduce overall energy demand. This includes minimizing dependence on the national power grid.
A carefully prepared National Energy Policy, incorporating feedback from civil society groups on the 2017 draft, is essential. All issues raised by civil society groups and stakeholders must be addressed in a transparent manner to ensure that the study on renewable energy transition achieves meaningful results.
The NITI Aayog should engage all stakeholders, including civil society groups and technical institutes like IITs, IISc, and NITs, in this process. It is disappointing that these premier institutions and energy research organizations have not been fully involved in national deliberations. NITI Aayog should recognize the wealth of expertise available among retired professionals and energy experts, whose collective knowledge can significantly contribute to the welfare of the country.
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*Power and Climate Policy Analyst based in Karnataka. This article is based on the author’s representation to the Vice-Chairperson and Chairperson of NITI Aayog.
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