High Commissioner of India, H.E. Prabhat Kumar
The Consulate General of India in Johannesburg, in collaboration with WITS Business School, is hosting a Matla-Urja Energy Conference in Johannesburg on November 28, in which several Indian and South African energy-related companies will be participating.
This presents a good opportunity to review India’s progress in various sectors related to energy in the last 10 years. There has been huge progress in India’s energy scenario in this period, with all three pillars of energy security i.e. affordability, accessibility, and availability, being addressed in a very effective manner.
As a result, India’s GDP has grown rapidly, making it the fifth-largest economy in the world and the fastest-growing large economy.
The power sector has been at the forefront of this energy transformation. The total installed capacity of power was 2,48,554 MW (248 GW) in March 2014. This has increased to 452,695 MW (452 GW) in September 2024.
Out of 452 GW, 240 GW of generation capacity has been developed by the private sector. The installed capacity in the renewable sector has increased more than 2.67 times from 75 GW in 2014 to 201 GW in 2024. India aims to achieve 500 GW of renewable energy capacity by 2030.
During this period, India has emerged as one of the largest unified grid in the world and transformed the country into an unified power market. This allows the distribution companies to buy power at the cheapest available rates from any generator in any corner of the country thereby enabling cheaper electricity tariffs for the consumer.
India was plagued with transmission and distribution losses earlier. The aggregate technical and commercial losses which include non-payment and theft have come down from 22.62 % in 2013-14 to 15.40% in 2022-23. 100% of villages have been electrified. In urban areas, electricity is available almost 24 hours while in rural areas the average is around 21 hours.
The growth of the Indian power sector has also benefited the neighbouring countries. While Bhutan and Nepal sell hydropower to India, India also sells power to Nepal during off-season. Bangladesh’s power purchase from India has significantly brought down its cost of power.
Hydrocarbon sector of India is highly import dependent. The import dependence for oil is around 88% and 51% for natural gas. As we are not blessed with these natural resources, we are taking other measures to improve the situation.
Biofuel production and electric vehicles are two major programmes in that direction. India’s ethanol blending program has seen significant progress, with the percentage of ethanol blended with petrol increasing from 1.53% in 2014 to over 15% in 2024. The government’s goal is to blend 20% ethanol with petrol by 2025.
Electric vehicles adoption is another measure not only to reduce India’s import dependence on oil but also to lessen harmful emissions. More than 1,6 million electric-powered vehicles, including cars, scooters, motorcycles, and three-wheelers were sold in the financial year 2023-24 in India, an increase of 42% over the previous year.
Access and affordability have also been part of the government programme, especially to access cleaner fuel for cooking and electricity connections. There has been a revolution in cooking gas connections.
The number of LPG connections has gone up from 145 million in April 2014 to 325 million in August 2024. Similarly, piped gas connections have multiplied from 2.54 million to 13.2 million. This has not only addressed emissions but also improved the health of women folk.
Another measure taken to improve energy efficiency has been the fast adoption of L.E.D lighting, which has not only led to less use of electricity but also developed a whole industry, employing thousands of people. It also allowed India to phase out fluorescent lighting which uses harmful mercury.
India has committed to reducing its emissions intensity by 45% by 2030, compared to 2005 levels. This is part of India’s Nationally Determined Contributions under the Paris Agreement. It has also committed to doubling the rate of improvement in energy efficiency by 2030 as part of a voluntary action plan within the G20 framework.
India has launched a National Green Hydrogen Mission (NGHM) to make it a global leader in the production, use, and export of green hydrogen. The mission was launched in January 2023 and aims that by 2030 India should produce at least 5 million metric tonnes (MMT) of green hydrogen per year out of which it plans to export 3.5 MMT.
Apart from domestic measures India has taken to enhance its energy security, it has also supported the formation of two global organisations - namely the International Solar Alliance and the Global Biofuel Alliance.
The International Solar Alliance, which was launched in collaboration with France during the Paris climate meeting in 2015, has already had significant traction with 101 full members.
The Alliance aims to popularise solar energy technologies, which would not meet our energy requirements but also mitigate the adverse effect that other energy sources have on the planet.
Last year, during India’s Presidency of G-20, the Global Biofuel Alliance was launched. It is a multi-stakeholder alliance of governments, international organisations and industries, bringing together the biggest consumers and producers of biofuels to drive development and deployment of biofuels.
The initiative aims to position biofuels as a key to energy transition and contribute to jobs and economic growth. Twenty-five countries and 12 international organisations have already agreed to join the alliance.
India, therefore, has taken several strides in augmenting its energy security in the last 10 years, that has not only increased the availability, affordability and accessibility of energy throughout the country but has also addressed its climate related international commitment.
The Matla-Urja Energy Conference will endeavor to stress on these aspects and at the same time look into possible areas of cooperation and collaboration with South African companies, which would further enhance the energy security of both countries.