Renewable Energy Sources of India UPSC NOTE

What are the renewable energy sources of India?

Contribution to power sector

India stands 4th globally in Renewable Energy Installed Capacity (including Large Hydro)
4th in Wind Power capacity
4th in Solar Power capacity (as per REN21 Renewables 2022 Global Status Report).
The country has set an enhanced target at the COP26 of 500 GW of non-fossil fuel based energy by 2030.
India’s installed non-fossil fuel capacity has increased 396% in the last 8.5 years and stands at more than 178.79 Giga Watts (including large Hydro), which is about 43% of the country’s total capacity (as on May 2023).
The installed solar energy capacity has increased by 24.4 times in the last 9 years, and stands at 66.7 GW as of May 2023.
The installed Renewable energy capacity (including large hydro) has seen an increase of around 128 % since 2014.
FDI of up to 100% is allowed in the renewable energy industry under the automatic route, with no prior government approval needed.

India’s commitments

India has set a target to reduce the carbon intensity of the nation’s economy by less than 45% by the end of the decade,
Achieve 50 percent cumulative electric power installed by 2030 from renewables.
Achieve net-zero carbon emissions by 2070.
India‘s target is to produce five million tonnes of green hydrogen by 2030. This will be supported by 125 GW of renewable energy capacity.
Wind Energy has an offshore target of 30 GW by 2030 with potential sites identified.

National Electricity Plan (NEP) estimates

National Electricity Plan (NEP) prepared by the the Central Electricity Authority (CEA).
It is a five-year plan that assesses India’s current electricity needs, projected growth, power sources, and challenges.
The target to achieve 50 percent cumulative electric power installed by 2030 from renewables. - This target may be achieved early, by 2026-27.
The share of non-fossil based capacity is likely to increase to 57.4% by the end of 2026-27 and may likely to further increase to 68.4% by the end of 2031-32 from around 42.5% as on April 2023.
Considering the climate vagaries - the available power from renewable energy will only be around 35.04% of the total generated electricity by 2026-27 and 43.96% by 2031-32, the NEP estimates.

Manufacturing Sector In India

Currently contributing about 15 percent of the country's GDP.
India is the sixth-largest manufacturing economy in the world and contributes 3.1% to the world GDP.
Employed about 12% of the total labour force.
Manufactured goods consists of almost 65% of Indian merchandise exports or around 43% of total exports.
35% of all FDI inflow.

Steps taken

Economic Reforms 1991:

Reductions in tariffs and the removal of bureaucratic barriers.
But did not result in a substantial increase.
However, there has been a qualitative change in the sector since 1991, with an impressive increase in the range and quality of products manufactured in the country.
The rising quality and variety of the goods produced, without the expansion of manufacturing in relation to the economy, suggests a rising inequality of income.

“Make in India” initiative:

In 2014
It emphasised attracting FDI.
Additionally, the more recent Production-Linked Incentive (PLI) scheme was introduced to subsidise production in specific sectors.
The record of these schemes has not been impressive.

Issues

There has been a significant gap in attention to the manufacturing sector in India following the economic reforms of 1991.
Low Manufacturing Growth
The manufacturing sector has recorded a growth rate of 1.3% which is lower than the growth rates observed in agriculture and various segments of the services sector. (According to advance estimates of the national income for the fiscal year 2022-23).
The data provide clear evidence of the impact of the demonetization policy (2016), which contributed to the slowdown of the manufacturing sector.
Other Structural Issues.

Demand Side Problem:

The government has more focused on taking measures to improve the supply side only.
The focus on improving infrastructure, policy initiatives, and lowering taxes has primarily targeted enhancing the supply capacity and competitiveness of the manufacturing sector.
Indian household demand for manufactured goods is closely tied to the satisfaction of basic needs such as food, housing, health, and education, which cannot be postponed.
In India, a significant portion of household expenditure is allocated to food, which constrains the growth of demand for manufactured goods.
India has a relatively higher share of food expenditure and a lower GDP per capita. This indicates that the demand for manufactured goods may be limited.

Export constraints:

Possibility of exporting can help the manufacturing sector overcome limitations of the domestic market demands.
Comparisons with East Asian economies show that successful exporting requires infrastructure and a skilled workforce.
Challenges faced by Indian exporters, particularly in the northern regions, in reaching seaports due to inadequate infrastructure and practices.
India's ports have longer turnaround times compared to ports in countries like Singapore.
Expensive power
Non available space
Improper industrial waste disposal services.

Problems in the Education system:

Comparison to the countries that have succeeded in manufacturing.
India's performance in international assessments like the Programme for International Student Assessment (PISA) ranks comparatively low, while the countries of East Asia excel in these assessments.
Lack of employability of university graduates.
While India's universities have expanded to cater to the aspirations of the middle class, there has been a neglect of vocational training institutes and the development of skills necessary for various skilled trades such as carpentry, plumbing, and mechanics.
Former Planning Commission data showed that only about 5% of Indian youth had received any form of technical training, in contrast to South Korea's figure of over 85%.
Lack of preparedness of the labour force for manufacturing-related jobs.

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