Context:
The Economic Survey 202425 advocates a dual strategy of climate action along with continued fossil fuel investments for achieving energy security warns against overreliance on China for renewable energy components while calling for indigenous clean energy development and public transport over private EVs.
Fossil Fuels Necessary for Energy Security
- The Survey opposes the early retirement of coalfired power plants, arguing that a secure energy supply should be ensured before fossil fuel consumption is reduced. It leans on the difficulties that developed nations faced when they abandoned thermal power sources without adequate alternative supply.
- The suggested critical investments are
- Ultra supercritical power plants, more efficient coal technology, and battery storage solutions for reliability in renewable energy.
- Carbon capture utilization and storage (CCUS) to attain lower emissions.
India Should Avoid Dependence on China for Transitioning to Low Carbon
- Indian energy transition is heavily dependent on China’s solar module supplies which constitute over 80 percent of the global supply chains.
- Chinese dominance as it brings down the cost in solar PVs brings with it the risks that may be brought about by the supply chains.
- The Survey asks India to develop its own clean energy technology to avoid geopolitical vulnerabilities.
India’s Climate Commitments Financial Challenges
- The Survey again reminds India of its Panchamrit climate commitments at COP26 with a focus on a low carbon growth path.
- It observes that global financial support for developing nations climate efforts is declining and thus self reliance in green technology is critical.
Public Transport Over Private EVs
- The Survey suggests incentivizing public transport rather than private EV production as Indias import dependency for EV components is high particularly from China.
Evolution of Challenges in Adoption
- India imported most of its oil and thus EVs have a lot to offer.
- EV production still is highly import intensive.
- Limited land availability and the need to make public transport, an efficient alternative for sustainable mobility call for gradual indigenising of EV technology and sourcing raw materials to diminish reliance on importation.
