India has added new electricity connections for 50 million citizens each year over the past decade. But, per capita energy consumption in India is still very low - the average household in India consumes a tenth as much electricity as the average household in the US. India’s big size, low consumption base and growing economy mean its energy demand is set to surge manifold in the coming decades.

Fortunately, renewable electricity production is growing at a faster rate in India than any other major country, with new capacity additions on track to double by 2026. India's installed renewable energy capacity, at more than 174.53 GW (which is about 42.5 per cent of the country's total capacity), has increased by 396 per cent in the last 8.5 years. India saw the highest YoY growth in renewable energy additions of 9.83 per cent in 2022.

India, which is one of the world’s largest producers of modern bioenergy, is looking to scale up bioenergy use across the economy. The International Energy Agency (IEA) expects India to overtake Canada and China in the next few years to become the third largest ethanol market worldwide after the US and Brazil. Green hydrogen is another new area, which can help India to decarbonise the hard-to-abate sectors. India has the potential to easily create 5 million tonne green hydrogen demand thereby replacing grey hydrogen in the refineries and fertiliser sector.

A transition to clean energy is a huge economic opportunity. India has announced number of initiatives (including PLI schemes) for encourage growth of renewable energy and is well placed to become a global leader in renewable batteries and green hydrogen. These and other low- carbon technologies could create a market worth up to $80 billion in India by 2030, according to IEA.

But, India will need a support from the international community for its shift towards a low- carbon development path. As per IEA estimate, to reach net zero emissions by 2070, $160 billion per year is needed across India’s energy economy between now and 2030. As this represents three times today’s investment levels, India will require access to low cost long-term capital for achieving net zero target.

At present, India is dependent on imports of machinery and equipment for meeting its requirements for renewable energy sector. Given the present geopolitical situation, supplies and raw material prices are always uncertain affecting the economics of power projects. So, atmanirbharta in renewable energy has to be integral to India’s economic security.

While we build internal capabilities, Indian companies will have to look for international collaborations for making India atmanirbhar in renewable energy to achieve twin objectives of sustainability and ensuring energy security. India’s commitment to achieve 500 GW renewable energy generation by 2030 presents a potential big market for global companies to invest in manufacturing facilities in India. Government’s thrust on renewable energy will surely help the industry gain economies of scale and competitive edge empowering it to meet requirements of India as well as the world.