Green energy push: Driving India's economic and geopolitical future

India is at the cusp of an energy revolution. As the world’s fastest-growing major economy and the third-largest emitter of greenhouse gases, the nation faces a dual challenge—meeting rising energy demand while achieving decarbonization goals. The green energy transition is a powerful pathway to secure economic growth, strengthen energy independence, and ensure environmental sustainability. With ambitious commitments under the Paris Agreement and a pledge to achieve net-zero emissions by 2070, India’s green energy transition is central to its economic and geopolitical future. 

 

  Rising Energy Demand and the Climate Challenge

 

India’s energy demand is projected to double by 2040, driven by urbanization, industrial growth, and rising per capita consumption. Currently, fossil fuels—especially coal and imported oil—dominate the energy mix. This dependency exposes the country to volatile global prices, mounting import bills, and severe air pollution, while also making climate commitments harder to achieve. 

 

To address these challenges, India has pledged to achieve 500 GW of renewable energy capacity by 2030, reduce the carbon intensity of its GDP by 45%, and reach net-zero emissions by 2070. These targets reflect both ambition and necessity. 

 

While India lags in absolute numbers compared to China or the EU, its growth rate in solar and bioenergy is among the highest globally, making it a critical market for green investments. 

   

India has already emerged as one of the fastest-growing renewable energy markets in the world:

 

•             Solar Power: With over 80 GW installed capacity, India ranks among the top solar producers. Ultra-mega solar parks and rooftop programs are reshaping rural and urban landscapes alike.

 

•             Wind Energy: Offshore and onshore wind projects are expanding, particularly in Tamil Nadu, Gujarat, and Maharashtra.

 

•             Hydro & Small Hydro: Large dams and mini-hydro projects continue to provide clean baseload power.

 

•             Bioenergy & CBG: With agriculture residues, municipal waste, and animal dung, India has immense potential to generate Compressed Biogas (CBG) and organic fertilisers—creating a circular economy model. 

 

 

Green Fuels: The Next Industrial Revolution

 

Green Hydrogen (H₂): Fuel of the Future

 

One of the most transformative initiatives is the National Green Hydrogen Mission, aiming to make India a global hub for production, utilization, and export of green hydrogen. By replacing fossil fuels in steel, cement, shipping, and fertilisers, green hydrogen can revolutionize hard-to-abate sectors.

 

•             Target: 5 MMT production by 2030.

 

•             Applications: Steel, cement, shipping, aviation, fertilisers.

 

•             Global Benchmark: India’s cost of green hydrogen is $4.5/kg today, projected to fall below $1/kg by 2030—making it among the cheapest globally.

 

Green Ammonia (NH₃)

 

•             Used in fertilisers, shipping, and as a hydrogen carrier.

 

•             Potential export market to Japan, South Korea, and Europe.

 

•             India’s fertiliser sector, currently heavily import-dependent, could achieve energy security with domestic green ammonia production.

 

Green Urea

 

•             India consumes 38.7 MMT of urea annually, with imports meeting 15% of demand.

 

•             Green urea, manufactured using renewable hydrogen and nitrogen fixation, can reduce subsidies (₹1.83 lakh crore annually) and cut emissions from conventional fertiliser plants.

 

•             Indian fertiliser plants convert from grey (natural gas) to green (renewables), can cut 23 MMT CO₂ every year, reduce import dependence, and strengthen energy security.

 

Financing & Investment Landscape

 

•             Estimated Investment Needs (2023–2030): $250–300 billion.

 

•             Key Investors: Reliance, Adani, NTPC, Greenko, ReNew Power, global energy majors like Shell, BP, and Total Energies.

 

•             Global Green Finance Trends: Sovereign Green Bonds (India issued its first in 2023), ESG-linked FDI inflows, and multilateral funding (World Bank, ADB, JICA).

 

Decentralised Energy & Energy Access

 

Decentralized solar micro-grids, rooftop panels, and biomass projects are ensuring clean energy access in remote villages. This not only reduces dependence on diesel but also empowers rural communities with affordable, reliable, and sustainable power.

 

Policy Landscape Driving Green Energy

 

1.            National Electricity Plan (2023–32): Roadmap for 500 GW renewable energy capacity by 2030.

 

2.            National Green Hydrogen Mission (2023): ₹19,744 crore investment to develop 5 MMT annual green hydrogen production capacity by 2030.

 

3.            PLI Schemes: Incentives for domestic solar PV, battery, and electrolyzer manufacturing.

 

4.            Renewable Energy Open Access & Green Credits: Policy reforms enabling industries to shift to renewables and trade carbon credits.

 

5.            Bioenergy & Waste-to-Wealth Initiatives: Compressed Biogas (CBG) and Fermented Organic Manure (FOM) integration with agriculture.

 

The government has created a favorable policy framework—Production Linked Incentives (PLIs) for solar and battery manufacturing, viability gap funding for green hydrogen, and Renewable Energy Service Companies (RESCO) models. Simultaneously, leading corporates are investing heavily in renewables, biofuels, and sustainable agriculture-energy integration. Reliance, Adani, NTPC, and international players are making India central to their green investment strategies.

 

Unlocking Opportunities Ahead

 

•             Energy Security: Reduce $160 billion annual fossil fuel import bill.

 

•             Job Creation: 1 million+ green jobs in solar, hydrogen, EVs, and bioenergy.

 

•             Agri-Energy Nexus: Rural income through agri-residue collection for CBG and biofuels.

 

Challenges on the Road Ahead

 

Despite rapid progress, challenges remain:

 

•             Integration of intermittent solar and wind into the national grid.

 

•             Scaling battery storage technologies and domestic manufacturing capacity.

 

•             Technology dependence on imported electrolysers and PV cells (though improving with PLI).

 

•             Land acquisition and balancing development with biodiversity.

 

•             Financing large-scale renewable projects at low cost.

 

Addressing these will require policy consistency, global partnerships, and technological innovation and long-term vision.

 

The Road to 2047 – Energy Independence at 100

 

By the time India celebrates its centenary of independence in 2047, it aspires to be energy independent, powered primarily by green energy. This vision includes:

 

•             100% renewable power in electricity generation.

 

•             Energy independence from fossil imports.

 

•             Transition of mobility to EVs and green hydrogen fuels.

 

•             Net-positive agriculture and industries running on renewables and circular economy models.

 

•             Millions of green jobs in manufacturing, services, and rural economies.

 

•             Leadership in green hydrogen, ammonia, and urea exports.

 

The green energy future of India is not merely about technology—it is about transformation. It is about shifting from dependence to self-reliance, from pollution to sustainability, and from energy scarcity to abundance. With bold policy, strong private sector participation, investments, and citizen engagement, India will truly become the torchbearer of the global green revolution.

 

The world is watching, and India’s choices will write the next chapter of sustainable growth. India can position itself as the world’s renewable powerhouse and green fuel exporter. For business leaders and investors, one message is clear: green energy is the future of India, it’s not just India’s mission—it is its trillion-dollar opportunity and responsibility to the planet. 

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The author is Business Head – fertilisers, Reliance Industries Limited, and a certified independent director, driving India’s green energy and fertiliser transition

 

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper