Q. Do you think India will meet 50 percent of its energy needs from renewable energy by 2030 ? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective ? Explain.

Model Answer: 

At COP26 (Panchamrit pledge), India committed to achieving 500 GW of non-fossil capacity and meeting 50% of its energy requirements from renewable energy (RE) by 2030.

1. Feasibility of Meeting 50% RE Target by 2030

Achieving this target is conditionally feasible, driven by strong momentum but constrained by structural hurdles.

Key Drivers (Optimistic Trajectory):

1. Rapid Capacity Addition: Non-fossil capacity has already crossed 180 GW, ranking India 4th globally in installed RE.
2. Manufacturing Push: The ₹19,500 crore PLI scheme for high-efficiency Solar PV modules reduces import dependence.
3. Decentralized Generation: Schemes like PM-KUSUM and Rooftop Solar (PM Surya Ghar) mobilize grassroots energy transition.

Critical Bottlenecks (Challenges to Overcome):

4. Intermittency & Storage: Lack of affordable Battery Energy Storage Systems (BESS) limits 24/7 base-load RE supply.
5. DISCOM Financial Health: Mounting aggregate technical and commercial (AT&C) losses restrict new Power Purchase Agreements (PPAs).
6. Supply Chain Vulnerabilities: Heavy reliance on imported critical minerals (lithium, cobalt) and solar wafers.

2. How Shifting Fossil Subsidies Accelerates RE Objectives

According to the IISD, India’s fossil fuel subsidies remain substantially higher than clean energy support. Shifting this fiscal weight is critical:

1. True Cost Discovery: Phasing out coal and diesel subsidies internalizes carbon costs, making RE commercially superior.
2. Funding R&D & Storage: Redirected fiscal savings can subsidize high-cost technologies (Green Hydrogen electrolyzers, Pumped Hydro Storage).
3. Behavioral Shift: Reallocating agricultural grid power subsidies to PM-KUSUM solar pumps incentivizes farmers to become net power producers.
4. Grid Modernization: Freed-up capital can finance the Green Energy Corridor to seamlessly integrate intermittent renewables.
5. Attracting ESG Capital: A definitive shift from fossil subsidies provides clear price signals, crowding-in global climate finance.

Meeting the ambitious 2030 target demands a dual approach: rationalizing legacy fossil subsidies while aggressively investing in energy storage and holistic DISCOM reforms (Revamped Distribution Sector Scheme).