2. GENERAL ENERGY POLICY

security to include gas security and electricity reliability. The same trends will affect India, even when the share of gas and electricity are still somewhat lower, albeit rising all the same. If gas becomes more relevant in the energy mix, then the risks and costs of possible disruption will rise. The same is true for electricity, where high levels of reliability become increasingly relevant in a digital society.

Sustainability

The government has embarked on an ambitious policy to boost renewable electricity, with a target of 175 GW capacity by 2022. Under its NDC, India targets a share of non- fossil-based capacity in the electricity mix of more than 40% by 2030 and a reduction in the emissions intensity of its GDP of 33-35% by 2030 over 2005. Recently the GoI has indicated ambitious new targets for renewables capacity in the region of 450 GW. In addition, the GoI is promoting hydropower as a source of flexibility and grid stability (it is now categorised as renewable energy and can be supported under hydro purchase obligations). The GoI expects 21 GW of new hydropower projects to be developed by 2030, requiring an investment of about USD 31 billion.

India’s energy sector is transitioning to greater sustainability. As a result of the country’s proactive and sustained actions on climate change mitigation, the emissions intensity of India’s GDP has reduced by around 20% over the period 2005-14.

Energy efficiency is receiving more attention, with standards and codes being set for industry, buildings and appliances. Renewables are already providing a rising share of the electricity mix. The policy of competitive bidding has delivered lower renewable energy prices than anybody had expected. India has vast renewable resources, which are great assets for building a sustainable energy future. The new GoI ten-point economic programme for the next decade indeed places the emphasis on clean air, water and soil.

India’s energy transition offers very large co-benefits, notably for public health by limiting air pollution, a big challenge in all major cities and a source of future health concerns with growing industrial production and manufacturing. The GoI has ruled out deploying new coal capacity up to 2027 (beyond plants still under construction) and aims to close the oldest most inefficient coal plants in the country. However, the GoI estimates that it will need to rely on coal to satisfy the bulk of the country’s peak electricity demand. It has announced plans to build new coal plants after 2027 for the 2030 horizon to foster an optimal generation mix with higher shares of renewables and energy storage. The increase in the energy efficiency of coal production and use, and the full implementation of air pollution standards for power plants, are fundamental for the longer-term transition.

Energy data and statistics

India and the IEA benefit from a longstanding bilateral relationship, first formalised in 1998 with the signing of a Declaration of Co-operation, which covered energy security and statistics, and three Joint Statements under IEA Association. In 2016 NITI Aayog and the IEA signed a Statement of Intent to enhance co-operation in many fields, including forecasting and data. The IEA Energy Data Centre and the GoI are collaborating closely, through MoSPI and NITI Aayog, on annual energy statistics to establish the country’s energy balance and improve India energy data collection and dissemination. The IEA supports MoSPI’s work to help centralise data collection and to improve templates used to collect data from ministries to establish the country’s energy

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