Energy Efficiency- The Cornerstone of India’s Net Zero Journey

To reach the net zero target, around 40 percent of the total emissions in India can be reduced by EE. For a sustainable transition to carbon neutrality, quick action on energy is crucial for India facing energy scarcity.

June 06, 2023. By News Bureau

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Many countries are walking the narrow path of managing the compulsions of economic growth and at the same time striving to balance the preservation of their fragile ecosystems least should not pose threat to environmental sustainability. This situation is making nations all over the world look for measures that can catalyse this aspiration in an intelligent and cost-effective way.

Almost 1.4 billion people in India are striving for a better life that depends on energy. As India looks to achieve a net zero emissions economy by 2070, how can it accomplish this? Rather than following fossil-fuel-driven paths previously pursued by developed economies, India can chart its own unique path to development.

India’s Energy Consumption Pattern

The country offers strong economic growth prospects, a large and growing market, and a favourable investment climate. By 2023, India will have the world's largest population, which will require goods and services for the huge addressable market. The implications are that GDP will more than double to USD 7.5 trillion by 2031, resulting in a surge in discretionary spending and consumption patterns. In a growth-driven economy, energy powers everything from humans to machines.

Energy is being consumed at an alarming rate all over the world, and India is no exception. India is the world's third-largest energy consumer, trailing only the United States and China. The primary energy consumption already has doubled since the 2000s from 440 million TOE to 880 million TOE. It is expected to again double in the next 20 years to around 1900 million in 2040.

India’s Panchamrit Commitment & Green Growth as a Priority

The major challenge now is that with the projections of economic growth, energy use and emissions per energy unit have put India on a path of continuously increasing greenhouse gas (GHG) emissions. India is one of the world's biggest CO₂ emitters, behind only China, the United States, and the European Union.

According to its 5 commitments ‘Panchamrit’, India will attain the net zero emission target by 2070 as announced by Prime Minister Narendra Modi at Glasgow COP-26. India will cut its economy’s carbon intensity down to 45 percent, will fulfill 50 percent of its energy requirement through renewables and reduce 1 billion tons of carbon emissions from the total projected emissions by 2030.

India will also bring its non-fossil energy capacity to 500 GW by 2030. As outlined in the Union Budget FY23, green growth is among the 7 priorities in the vision for AmritKaal, the 25-year-long leadup to India@100.

Challenges in India’s Net Zero Emission Journey

India’s journey towards net zero would be challenging as India’s GHG emission is projected to peak by 2040s. The rate of decrease of emissions required to achieve the target by 2050 onwards will be exponentially higher compared to the historic trends in Business as Usual (BAU) scenario. Going forward, the energy mix is projected to shift towards power.

Currently, the focus on the large build-out of renewables to curb emissions will be insufficient as they are not even close to replacing fossil fuels to meet the growing energy needs of the Indian population. Many of the futuristic technologies like hydrogen, carbon capture utilization& storage (CCUS), circularity, fuel cells, biomass, etc. are still in their nascent stages with high-cost implications. On one hand, these technologies require a huge push on the policy front, as also India Inc. needs to come forward to demonstrate its commitment towards the adoption of these technologies.

Why Energy Efficiency Holds the Key to India’s Decarbonisation?

Approximately 76 percent of electricity is produced using fossil fuels, with renewable energy sources accounting for nearly 20 percent of total production. According to statistical data, residential electricity usage accounts for 24 percent of total consumption. The industrial sector consumes 42 percent of all electricity. Agricultural consumption of electricity accounts for 17 percent.

Primary energy demand in India has risen in tandem with the country's GDP and population. Demand is generated by all sectors of the economy, from industrial and commercial to agricultural and residential. Reduced energy intensity will be a critical component of demand-side management. Currently, the electricity sector accounts for India’s largest share of greenhouse gas emissions at roughly 40 percent. Continued reduction in the energy intensity of GDP is a key driver to NZE, triggered by greater end-use efficiency in our cities and buildings, transport, and industry.

Energy Efficiency- The Power of ‘Now’

Energy efficiency (EE) is the fastest, easiest, and most impactful way to accelerate the green transition acknowledged by the world today. To cite a CII Report on ‘Decarbonisation of Indian Industrial Sector’, EE will play a major role in the overall decarbonisation journey of India and the Industrial sector as in BAU and deep decarbonisation scenarios will contribute to around 45.9 percent and 31 percent respectively to the overall GHG emissions.

To reach the net zero target, around 40 percent of the total emissions in India can be reduced by EE. For a sustainable transition to carbon neutrality, quick action on energy is crucial for India facing energy scarcity. If energy is used in a smart way, the curve of the energy demand can be broken. This will in turn ease the pressure on the renewables, as each watt generated can be stretched further.

The EE solutions and technology are already there and can be implemented right away and the good news is that these solutions come with a short pay-back period. They will increase the competitiveness of our industries and improve the livelihoods of citizens. The investments required to foster an energy efficiency revolution can assist us in avoiding additional spending on energy supply. Without early action on efficiency, the transition to net zero emissions will be more expensive and much more difficult to achieve. There is a realisation at the policy level as well to urgently deploy solutions to reduce energy waste and electrify transportation, industries, and buildings.

It’s pertinent now for India to mitigate climate change as fast as possible to counter the large negative impacts on GDP due to the consequences of global warming. To achieve the goal of improvement in energy intensity per unit of GDP, energy efficiency adoption will be a big key to India’s overall reduction of GHG emissions.

India must ensure its energy pathway is socially inclusive, economically viable, and ensures long-term sustainability. A shift to green growth is a huge economic opportunity.

- Ravichandran Purushothaman, President, Danfoss India