Call for sustainable energy policy, holistic approach to renewable energy

By Shankar Sharma*

India stands at a crucial juncture in its energy transition journey. The Ministry of New and Renewable Energy (MNRE) recently announced that the country's renewable energy capacity has doubled to 15 GW. While this milestone is commendable, it is juxtaposed with concerns over coal-based power expansions, substantial investments in transmission infrastructure, and delayed renewable energy projects.

These challenges raise critical questions about the sustainability and coherence of India’s energy policies.

Contradictions in Energy Policies

Reports indicate that India plans to add 18 GW of coal-based power capacity by FY26, even as the nation pledges to achieve net-zero emissions. This contradiction highlights a lack of alignment between renewable energy growth and the continued reliance on fossil fuels.

Moreover, the push for large-scale solar and wind power parks necessitates significant investments in transmission infrastructure—estimated at $107 billion—raising concerns about environmental degradation, displacement of agrarian communities, and transmission losses.

The Renewable Energy (RE) sector is further mired in controversies, such as delays in signing Power Purchase Agreements (PPAs), allegations of corruption in large-scale projects, and reputational risks for key stakeholders like the Solar Energy Corporation of India (SECI). These issues point to the need for a transparent and well-coordinated policy framework.

The Case for Distributed Renewable Energy

A shift towards distributed renewable energy systems, such as rooftop solar photovoltaic (SPV) installations and localized solar-powered agricultural pumps, offers a viable alternative.

These smaller, decentralized systems can seamlessly integrate with existing low-tension (LT) distribution networks, eliminating the need for extensive high-voltage transmission lines. This approach reduces transmission and distribution (T&D) losses, minimizes capital investment, and boosts local employment opportunities.

Global Trends and Lessons for India

Globally, distributed renewable energy systems are gaining traction. For instance:

The United States added 3.8 GW of energy storage capacity in Q3 2024, with residential installations reaching an all-time high.
Studies show significant benefits of pairing solar panels with agriculture, optimizing land use and increasing output.
A shift towards battery energy storage systems (BESS) is evident, with India projected to increase storage capacity 12-fold to 60 GW by FY32.

India must align its policies with these global trends to accelerate its green energy transition.

Policy Recommendations

1. Promote Distributed RE Systems: Encourage rooftop solar and localized renewable energy systems to reduce dependency on large-scale projects and transmission lines.

2. Adopt a Comprehensive National Energy Policy: Develop a cohesive strategy addressing renewable energy, storage solutions, and grid modernization.

3. Incentivize Battery Storage: Mandate battery storage for new RE projects to enhance grid stability and support distributed energy systems.

4. Integrate Renewable Energy with Agriculture: Leverage the synergy between solar energy and agriculture to maximize land use and support rural livelihoods.

5. Minimize Environmental Impact: Avoid large-scale infrastructure projects that disrupt ecosystems and agrarian communities.

Conclusion

India’s energy transition must prioritize sustainability, transparency, and inclusivity. A focused national energy policy, aligned with global best practices and rooted in distributed renewable energy systems, can pave the way for a greener and more resilient future. In light of escalating climate change threats, it is imperative for policymakers to act decisively and adopt a holistic approach to energy planning.

The government must initiate comprehensive policy-level discussions and implement measures that prioritize the long-term welfare of the nation and its people. Only then can India truly lead the way in sustainable energy development.

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*Power & Climate Policy Analyst This article is based on the author's representation to Shripad Yesso Naik, Pralhad Joshi, and Manohar Lal, respectively Minister of State (New & Renewable Energy), Cabinet Minister (New & Renewable Energy), Cabinet Minister of Power, with copies to the Prime Minister and the Chairperson of NITI Aayog, urging action on India’s energy policies

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