- As India’s economy and population continue to grow, so too does its demand for energy.
- India is also particularly vulnerable to climate change.
- Solar power could be the answer to both problems. With 300 sunny days a year, India can lead the world in solar capacity.
- Doing so will require strong policy-making and foreign investment – but the rewards will be manifold
A quarter-century of growth has transformed the lives of millions of Indians and enabled the country to ascend to its rightful place on the global stage.
India, now the sixth-largest economy, is projected to climb to third place by the end of the decade. This rapid growth trajectory also positions India as a testbed of one of the most critical questions facing the environmental movement: can developing nations, which are expected to generate the bulk of global growth in the coming decade, reduce their carbon footprint while fulfilling their economic potential?
India is currently among the top-three nations in energy use, though way down the list on a per-capita basis. Its energy demand will grow the most on the planet over the next 20 years.
Interestingly, it is not just economic growth driving this demand. India’s population is anticipated to grow by 270 million over the next two decades — resulting in an increased demand for carbon-intensive industries like cement and steel to house the population.
India is also very vulnerable to climate change, notably due to the melting of the Himalayan glaciers and changes in the monsoon pattern. For a country aiming to become a $5 trillion economy, the move towards a low-carbon and regenerative economy is an imperative.
Solar Salvation
In 2019, India ranked fourth globally in installed renewable power capacity, with solar and wind power leading the way. Prime Minister has set a goal to generate 450 gigawatts of renewable energy by 2030 – five times the current capacity.
If achieved, it also means that India would generate 60% of its electricity from non-fossil fuel sources by 2030, well beyond the 40% target in its Paris pledge.
Solar could be India’s salvation. With around 300 sunny days a year, India has the potential to lead the world in solar electricity, which will be less expensive than existing coal-fired power by 2030, even when paired with battery storage.
This will require the development of utility-scale renewable energy projects with innovative regulatory approaches that encourage pairing solar with other renewable technologies and storage to offer ‘round the clock’ supply. It will also require attracting foreign investment in renewables.
Prime Minister’s call for “high speed, large scale, concrete action” to combat climate change at the recent US-hosted summit and his open invitation to global partners for building sustainable solutions reaffirm India’s interest in nurturing cross-border collaboration and innovation to accelerate climate action.
n 2019, India ranked fourth globally in installed renewable power capacity, with solar and wind power leading the way. Prime Minister Narendra Modi has set a goal to generate 450 gigawatts of renewable energy by 2030 – five times the current capacity. If achieved, it also means that India would generate 60% of its electricity from non-fossil fuel sources by 2030, well beyond the 40% target in its Paris pledge.
Solar could be India’s salvation. With around 300 sunny days a year, India has the potential to lead the world in solar electricity, which will be less expensive than existing coal-fired power by 2030, even when paired with battery storage.
This will require the development of utility-scale renewable energy projects with innovative regulatory approaches that encourage pairing solar with other renewable technologies and storage to offer ‘round the clock’ supply. It will also require attracting foreign investment in renewables.
Prime Minister’s call for “high speed, large scale, concrete action” to combat climate change at the recent US-hosted summit and his open invitation to global partners for building sustainable solutions reaffirm India’s interest in nurturing cross-border collaboration and innovation to accelerate climate action.
Up to the challenge
The choices made now and in the coming years by the Indian government and the people will affect the entire world. But the sustainable route won’t be easy or economical.
The IEA report says transforming from today’s policy choices to a sustainable-development scenario would require a transition on a scale no country has achieved in history.
It would also require considerable innovation, strong partnerships, and vast amounts of capital. India should be up to the challenge.
The nation’s fuel import bills are likely to triple in the next two decades under current policies. At the same time, India is seen as an emerging renewables and storage powerhouse and is one of the few countries on track to meet most of its Paris targets.
If the country follows a more sustainable path of reducing emissions and increasing its share in non-fossil based fuel for electricity generation, then its bills for importing energy can be reduced substantially, offsetting the investments in renewables.
Of the world’s 2,000 largest public companies, at least one-fifth (21%) now have net-zero commitments, representing annual sales of nearly $14 trillion.
Even in India, companies have stepped up their climate initiatives. According to the Standard Chartered SDG Investment Map, India alone offers a private investment opportunity of over $700 billion in clean energy.
The private sector has a significant role in transforming the core of its business and delivery models and in building collaborative partnerships that will support them in achieving sustainability goals and ensuring inclusive growth for all. It’s becoming increasingly clear that we are in a period of transformation.
India is blessed with an extraordinary reservoir of business and public leadership talent committed to a cleaner and brighter future. The 2030 milestone is a crucial target for private sector investors looking to invest for impact and improve the lives of millions of Indians in the coming decade.
India has shown the world how to lift millions of people out of poverty and provide a better quality of life. With its transition to clean energy, India can become the model for nations around the globe by creating a pathway to sustainable growth, rising prosperity, environmental justice and a clean energy future.
Recent Posts
- In the Large States category (overall), Chhattisgarh ranks 1st, followed by Odisha and Telangana, whereas, towards the bottom are Maharashtra at 16th, Assam at 17th and Gujarat at 18th. Gujarat is one State that has seen startling performance ranking 5th in the PAI 2021 Index outperforming traditionally good performing States like Andhra Pradesh and Karnataka, but ranks last in terms of Delta
- In the Small States category (overall), Nagaland tops, followed by Mizoram and Tripura. Towards the tail end of the overall Delta ranking is Uttarakhand (9th), Arunachal Pradesh (10th) and Meghalaya (11th). Nagaland despite being a poor performer in the PAI 2021 Index has come out to be the top performer in Delta, similarly, Mizoram’s performance in Delta is also reflected in it’s ranking in the PAI 2021 Index
- In terms of Equity, in the Large States category, Chhattisgarh has the best Delta rate on Equity indicators, this is also reflected in the performance of Chhattisgarh in the Equity Pillar where it ranks 4th. Following Chhattisgarh is Odisha ranking 2nd in Delta-Equity ranking, but ranks 17th in the Equity Pillar of PAI 2021. Telangana ranks 3rd in Delta-Equity ranking even though it is not a top performer in this Pillar in the overall PAI 2021 Index. Jharkhand (16th), Uttar Pradesh (17th) and Assam (18th) rank at the bottom with Uttar Pradesh’s performance in line with the PAI 2021 Index
- Odisha and Nagaland have shown the best year-on-year improvement under 12 Key Development indicators.
- In the 60:40 division States, the top three performers are Kerala, Goa and Tamil Nadu and, the bottom three performers are Uttar Pradesh, Jharkhand and Bihar.
- In the 90:10 division States, the top three performers were Himachal Pradesh, Sikkim and Mizoram; and, the bottom three performers are Manipur, Assam and Meghalaya.
- Among the 60:40 division States, Orissa, Chhattisgarh and Madhya Pradesh are the top three performers and Tamil Nadu, Telangana and Delhi appear as the bottom three performers.
- Among the 90:10 division States, the top three performers are Manipur, Arunachal Pradesh and Nagaland; and, the bottom three performers are Jammu and Kashmir, Uttarakhand and Himachal Pradesh
- Among the 60:40 division States, Goa, West Bengal and Delhi appear as the top three performers and Andhra Pradesh, Telangana and Bihar appear as the bottom three performers.
- Among the 90:10 division States, Mizoram, Himachal Pradesh and Tripura were the top three performers and Jammu & Kashmir, Nagaland and Arunachal Pradesh were the bottom three performers
- West Bengal, Bihar and Tamil Nadu were the top three States amongst the 60:40 division States; while Haryana, Punjab and Rajasthan appeared as the bottom three performers
- In the case of 90:10 division States, Mizoram, Assam and Tripura were the top three performers and Nagaland, Jammu & Kashmir and Uttarakhand featured as the bottom three
- Among the 60:40 division States, the top three performers are Kerala, Andhra Pradesh and Orissa and the bottom three performers are Madhya Pradesh, Jharkhand and Goa
- In the 90:10 division States, the top three performers are Mizoram, Sikkim and Nagaland and the bottom three performers are Manipur and Assam
In a diverse country like India, where each State is socially, culturally, economically, and politically distinct, measuring Governance becomes increasingly tricky. The Public Affairs Index (PAI 2021) is a scientifically rigorous, data-based framework that measures the quality of governance at the Sub-national level and ranks the States and Union Territories (UTs) of India on a Composite Index (CI).
States are classified into two categories – Large and Small – using population as the criteria.
In PAI 2021, PAC defined three significant pillars that embody Governance – Growth, Equity, and Sustainability. Each of the three Pillars is circumscribed by five governance praxis Themes.
The themes include – Voice and Accountability, Government Effectiveness, Rule of Law, Regulatory Quality and Control of Corruption.
At the bottom of the pyramid, 43 component indicators are mapped to 14 Sustainable Development Goals (SDGs) that are relevant to the States and UTs.
This forms the foundation of the conceptual framework of PAI 2021. The choice of the 43 indicators that go into the calculation of the CI were dictated by the objective of uncovering the complexity and multidimensional character of development governance
The Equity Principle
The Equity Pillar of the PAI 2021 Index analyses the inclusiveness impact at the Sub-national level in the country; inclusiveness in terms of the welfare of a society that depends primarily on establishing that all people feel that they have a say in the governance and are not excluded from the mainstream policy framework.
This requires all individuals and communities, but particularly the most vulnerable, to have an opportunity to improve or maintain their wellbeing. This chapter of PAI 2021 reflects the performance of States and UTs during the pandemic and questions the governance infrastructure in the country, analysing the effectiveness of schemes and the general livelihood of the people in terms of Equity.
Growth and its Discontents
Growth in its multidimensional form encompasses the essence of access to and the availability and optimal utilisation of resources. By resources, PAI 2021 refer to human resources, infrastructure and the budgetary allocations. Capacity building of an economy cannot take place if all the key players of growth do not drive development. The multiplier effects of better health care, improved educational outcomes, increased capital accumulation and lower unemployment levels contribute magnificently in the growth and development of the States.
The Pursuit Of Sustainability
The Sustainability Pillar analyses the access to and usage of resources that has an impact on environment, economy and humankind. The Pillar subsumes two themes and uses seven indicators to measure the effectiveness of government efforts with regards to Sustainability.
The Curious Case Of The Delta
The Delta Analysis presents the results on the State performance on year-on-year improvement. The rankings are measured as the Delta value over the last five to 10 years of data available for 12 Key Development Indicators (KDI). In PAI 2021, 12 indicators across the three Pillars of Equity (five indicators), Growth (five indicators) and Sustainability (two indicators). These KDIs are the outcome indicators crucial to assess Human Development. The Performance in the Delta Analysis is then compared to the Overall PAI 2021 Index.
Key Findings:-
In the Scheme of Things
The Scheme Analysis adds an additional dimension to ranking of the States on their governance. It attempts to complement the Governance Model by trying to understand the developmental activities undertaken by State Governments in the form of schemes. It also tries to understand whether better performance of States in schemes reflect in better governance.
The Centrally Sponsored schemes that were analysed are National Health Mission (NHM), Umbrella Integrated Child Development Services scheme (ICDS), Mahatma Gandh National Rural Employment Guarantee Scheme (MGNREGS), Samagra Shiksha Abhiyan (SmSA) and MidDay Meal Scheme (MDMS).
National Health Mission (NHM)
INTEGRATED CHILD DEVELOPMENT SERVICES (ICDS)
MID- DAY MEAL SCHEME (MDMS)
SAMAGRA SHIKSHA ABHIYAN (SMSA)
MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME (MGNREGS)