Editorial of the Day (7th Aug): Balancing Realpolitik with Green Transition

Context: Recent landslides and natural disasters highlight balancing national interest with the need for a green energy transition.

India’s Green Energy Transition

The green energy transition in India is marked by three key observations:

• Varied State-Led Transitions: The transition is not uniform across the nation, with different states progressing at varying speeds.
• Trade Policy Tensions: There is a conflict between the drivers of the transition and the country’s trade policy.
• Governance vs. Sustainable Development: There is a discrepancy between the pragmatic aspects of governance and the ethical need for sustainable development.

Focus on Green Electrification

• The transition primarily revolves around green electrification, emphasising the shift from fossil fuels to a non-carbon energy system. This encompasses:
  • Electrification of transport, industry, buildings, and residential areas.
  • The joint responsibility of electricity generation, transmission, and distribution, which is a Concurrent Subject shared between the Centre and states.

Progress

The Union Ministry of New and Renewable Energy (MNRE) has made significant strides:

• Aiming to meet 50% of India’s energy needs from renewables by 2030.
• Targeting the creation of 500 GW of RE installed capacity by 2030.
• Committed to bidding out 50 GW of solar generation capacity annually, exceeding the target by 25% in 2023.

Challenges

• Transmission Connectivity: Currently inadequate.
• Energy Storage: Grid-scale energy storage is needed, but remains a long-term issue despite technological progress.
• Green Finance: Limited availability and short duration of green capital; most investors seek profitable exits within 6-7 years, whereas a 25-year horizon is needed.
• State-Level Disparities:
  • Advanced States: Telangana, Tamil Nadu, Kerala, Odisha, and Delhi have moved further and faster.
  • Stalled Progress: Haryana has supportive policies but lacks effective implementation machinery.
  • Financial Struggles: Rajasthan is financially stretched and struggles to provide incentives for the shift from fossil fuels.
• Geopolitical and Economic Dilemmas:
  • China’s Dominance in Renewables: In 2023, China contributed 63% of the global renewable energy additions.
    • Chinese solar panels are 85% cheaper than US panels and 55% cheaper than those from Southeast Asia.
    • However, over-dependence on Chinese products poses national security risks.
  • Carbon Taxes and Policy Dilemmas: The US, EU, and UK plan to impose taxes on the carbon content of imports.
    • Balancing economic growth with sustainability creates significant policy challenges.
  • Ethical Conundrum: The world faces an ethical challenge with global warming:
    • Recent forest fires in Uttarakhand, air traffic disruption in Leh due to high temperatures, and Wayanad landslides due to heavy rains illustrate the human and economic costs of climate change.
    • Current governance structures are hindered by rigid, self-serving national policies.

Suggestions

• Need for Alignment and Structural Redesign: The transition requires alignment among central government, state governments, public sector companies, private sector generators, and consumers, necessitating major structural and institutional redesign.
• Call for Cooperative Governance: A broader perspective beyond narrow political consideration is needed to address global warming, emphasising humanity, ethics, and cooperative governance over strict national interests.

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