Power and Energy
India, the world’s third-largest energy consumer, faces a paradox in its energy mix. While it is advancing toward cleaner energy, it remains heavily reliant on fossil fuels, with coal still accounting for around 49% of its energy consumption. Renewable sources, growing rapidly, contribute 30% of the mix, according to the 2023 data from Ministry of Power and Central Electricity Authority.

A major hurdle is integrating renewable energy into India’s power grid. Solar and wind energy are intermittent, meaning they don’t always align with demand. This creates a need for advanced grid management systems that can handle fluctuating supplies. With rising power demand, ensuring grid stability is becoming increasingly complex. The Greening the Grid (GTG) program, co-led by India’s Ministry of Power and the US Agency for International Development (USAID), aimed to support large-scale renewable energy integration but faced challenges in implementation.

Energy storage is another critical challenge. Storing renewable energy for use when the sun isn’t shining or the wind isn’t blowing is crucial for a consistent power supply. India is still catching up on battery storage technology, limiting the effectiveness of its renewable transition. Research and development in battery technologies, including lithium-ion and alternative storage solutions, must accelerate to ensure grid reliability.

Beyond technology, the energy transition has social implications. Millions of people depend on coal mining for their livelihoods, and transitioning to renewable energy will require comprehensive reskilling programs and social policies to ensure a just transition. Without proactive measures, the shift could lead to job losses and economic disruptions in
coal-dependent regions.
 
India’s commitment to reaching 500 GW of renewable energy capacity by 2030 opens doors for investment, research, and innovation. One promising area is green hydrogen, which India is well-positioned to lead. Produced using renewable energy, green hydrogen could provide a clean fuel alternative and become a key export, enhancing India’s role in the global green energy transition. Recent budget discussions have also emphasised nuclear energy as a stable baseload power source.

Manufacturing and Industry
The manufacturing sector is a major contributor to India’s carbon footprint, with energy-intensive industries like steel, cement, and chemicals accounting for about 16% of the country’s total emissions. Many industrial processes are energy-hungry and require serious attention to efficiency. While technologies exist to reduce energy consumption, they often require significant investment and workforce training, which can deter companies from making the transition.

One area of immense opportunity is green manufacturing. The Perform, Achieve, and Trade (PAT) scheme has been instrumental in driving energy efficiency improvements across key industrial sectors. This program not only incentivises industries to reduce their energy consumption but also provides a structured framework for compliance and innovation.

Carbon capture, utilisation, and storage (CCUS) technologies are also gaining traction, helping industries cut emissions while maintaining production efficiency.

Circular economy practices, including recycling and resource optimisation, can further reduce emissions. By adopting cleaner production processes and waste reduction strategies, industries can lower their carbon footprint while improving cost efficiency. Government policies supporting carbon pricing and emission trading schemes could accelerate industrial decarbonisation.

Transportation
According to a 2021 report from Niti Aayog, India’s transportation sector accounts for around 14% of the country’s total CO2 emissions, making it a critical focus for decarbonisation. The sector’s transition to a low-carbon model faces multiple challenges, including inadequate infrastructure for electric vehicles (EVs) and the high initial cost of adoption.

A major barrier is the lack of a widespread EV charging network, particularly for long-haul transportation, which is both a major source of emissions and a crucial part of the economy. While government subsidies and incentives exist, high costs remain a deterrent for mass EV adoption. Investing in localised battery production and alternative charging infrastructure, such as battery swapping stations, could accelerate EV adoption.

India also needs to expand and modernise its public transportation system. Efficient and sustainable public transit can reduce reliance on private vehicles, leading to decreased overall emissions. However, consumer preferences for personal vehicles over public transport present a behavioural challenge. Infrastructure improvements, better service reliability, and awareness campaigns can encourage greater public transit usage.

The adoption of biofuels, such as ethanol and biodiesel, can also reduce emissions. These fuels are more sustainable than fossil fuels and can be used in existing vehicles with minimal modifications. Hydrogen fuel cells hold promise, particularly for heavy-duty vehicles and public transport, offering quick refuelling and long-range capabilities. With continued government and private sector investment, hydrogen could play a significant role in zero-emission transportation.