Energy Transformation for Green Growth
Pathways for Sustainable Energy Security to Power India’s Economic Growth
29 August 2015, Kolkata
Growth & Environment
• India’s rapid economic growth
• A range of developmental outcomes
• Cost to the environment (resource scarcity & pollution)
• 155/178 on overall environmental quality (EPI 2014)
• 13 out of 20 most polluted cities in the world (WHO)
• Environmental degradation costs India US$80bn/year (World
Bank)
• Does economic growth has to come at the cost of
environmental degradation?
Growth & Environment
• Business as usual scenario the challenge of environmental
sustainability
• Need to value natural resources
• Emergent crisis is an opportunity
• Low-polluting & resource-efficient growth trajectory is desired
and achievable
• ‘Green Growth’ strategies to address environmental
degradation & natural resource depletion, while meeting the
developmental needs & escalating growth
• A trajectory of economic development that fully internalises
environmental costs, and is based on sustainable use of nonrenewable resources.
Energy, Growth & Environment
• Energy as a driver of growth
• Reliable energy access remains a growth barrier in India
• A quarter of population lack access to electricity
• India ranks 137 in getting electricity (Doing Business)
• Energy consumption accounts for 57.8% of GHG emission in
India
• Unique Challenge
• Bridge the demand-supply gap
• Revolutionise power generation
• A new deal to balance developmental & sustainability
priorities
Energy, Growth & Environment
• India is the third largest electricity market
• Projected to grow fastest in coming decade
• Of the 10 largest electricity systems, Indian market grew fastest with a
growth of 9.6% between 2013 & 2014
• With 74% of electricity from coal-fired power plants in 101415, India is the most coal dependent nation
• Projected to consume 20% of all internationally traded coal
• Import dependency to fuel power plants
• Over past 5 years, coal import has tripled to supply 22% of total
consumption in 2014
• In 2014, Indian electricity was second most carbon intensive
among top 20 nations
Need for an Energy
Transformation
• Need for a transformation in the way energy produced,
distributed and consumed
• GoI recognises the need
• To deliver, in sustainable way, a significantly bigger electricity
supply
• To improve grid efficiency & encourage infrastructure investment
• To support a rapid diversification away from coal-fired power
Need for an Energy
Transformation
We have planned a 5x growth in renewable energy in the next
five years. It is an article of faith for Prime Minister Narendra
Modi. India is much more conscious today and all of us recognise
that we have to leave behind a cleaner and greener country as we
move forward.
Minister of Power, Coal and New & Renewable Energy
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Additional RE installed capacity of 175MW by 2022
National Solar Mission- 100 GW by 2022
Proposed National Renewable Energy Act
New Integrated Energy Policy
Developmental & Environmental
Implications
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National energy security
Reduced import dependency
Industrial promotion (boost the Make in India initiative)
Employment generation
Regional development
Facilitate achievement of forthcoming SDGs
Reduced carbon intensity of economy
Reduced natural resource depletion and pollution
Challenges to be Addressed
• India’s energy transformation will require huge investment
• Meeting the RE targets only needs US$200 bn investment
• Fragile power market and bankrupt distribution utilities
• Systemic challenges
• Fundamental challenges in all segments of Indian electricity
• Process challenges
• Conflict of policies
• Integrated planning
• Effective regulation
• Conceptual challenges
• Sustainability – Equity
• Availability – Affordability – Accessibility
• Diversity
Political Economy Matters
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Long-standing ‘growth-first’ approach
Polluters pay
Climate action plan
Indian approach to sustainable development
• Inclusiveness & equity
• Limits of Indian approach
There is a will to transform the energy sector.
• Have we got the right strategies in place?
• How to create a strong political mandate for energy
transformations?
• How to mobilise decision-makers and social majority for such
a transformation?