Future of India’s Energy Mix

Future of India's Energy Mix

As the country’s population continues to grow and industrialization expands, India’s energy needs are set to increase significantly over the next few decades.


My vehicle needs energy or fuel to ensure I reach my destination. My home needs energy to lighten up our evenings and for cooling purposes as the sweltering summer soon approaches. In a similar manner, each one of us, our communities and the economy at large is dependent on energy.


India’s continued industrialisation and urbanisation will make huge demands from its energy sector and its policy makers. Energy use on a per capita basis is well under half the global average, and there are widespread differences in energy use and the quality of service across states and between rural and urban areas. The affordability and reliability of energy supply are key concerns for India’s consumers.


As the country’s population continues to grow and industrialization expands, India’s energy needs are set to increase significantly over the next few decades.


With political, economic and social factors disrupting the industry, Energy and Utility companies continue to steer towards greener, more customized solutions for the planet and its ever-conscientious citizens.


We in this blog we will try to delve on the trends that will shape the future of the energy and the industry in general.


India’s Energy Mix


India’s energy mix is dominated by coal, which accounts for approximately 55% of the country’s energy consumption. Oil and natural gas follow with a combined share of around 37%. India’s renewable energy sector is also growing rapidly, with solar and wind power accounting for about 5% of the total energy mix.


Based on India’s current policy settings, around 60% of CO2 emissions in 2030 will be produced from infrastructure that does not even exist today. This demonstrates a huge opportunity for the country to steer the demand towards non-fossil energy. India is already laying the groundwork to scale up important emerging technologies such as hydrogen, battery storage, and low-carbon steel, cement and fertilisers.


The decision to navigate towards non-fossil fuels will mitigate to a certain extent the present challenges viz:

  • Dependency on imports , viz as 80% of Oil and 50% of Natural Gas requirement is met by imports.
  • Inferior domestic quality of coal, resulting in significant air pollution.
  • Unreliable and uninterrupted power supplies

Renewable Energy Potential


This brings us to the infinite potential of renewable energy , The country has abundant solar and wind resources, with some of the highest solar radiation levels in the world. In recent years, India has made significant progress in increasing its renewable energy capacity, with a target of achieving 175 GW of renewable energy by 2022.The Indian government has also introduced several initiatives to support renewable energy development, including incentives and subsidies for renewable energy projects. By backing solar power adoption, the sector is enabling clean, affordable and reliable power production to meet the needs of a growing number of households and industries.


Further , In a bid to cut emissions, the Union Cabinet has already approved the National Green Hydrogen mission. The move aims to make India a global hub for using, producing and exporting green hydrogen which is a key fuel with a variety of applications – production of ammonia, steel, refineries and electricity. Unlike other forms of hydrogen, green hydrogen is produced via electrolysis – splitting water into hydrogen and oxygen with electricity generated from Solar or Wind. This proves to be one of the most sustainable and clean ways of producing energy.


The next in line focus for renewables is the transportation sector, The transport sector accounts for nearly 18% of the total energy consumed in India. Nearly 98% of the energy needs of transportation are met through petroleum products and almost half of the total consumption of petroleum products in India occurs on account of transport activities. Here  EV adoption is a significant step towards a cleaner, greener India. It is a viable strategy for reducing carbon emissions from the transportation sector as an estimated 40 crore customers would need mobility solutions by 2030.


However as with all the industries in India, there are still several barriers to the growth of renewable energy in India, including land acquisition issues, regulatory challenges, and financing constraints.




Overall, in the immediate future, India Energy mix is likely to be a combination of renewable energy sources and traditional sources, with greater emphasis on renewable energy as the country works to reduce its carbon footprint and meet its energy needs in a sustainable manner.


Green hydrogen has the potential to play a significant role in India’s energy mix in the future. As India seeks to reduce its carbon footprint and meet its energy needs in a sustainable manner, green hydrogen / Ammonia could become an important part of the country’s energy mix. However, the growth of green hydrogen in India will depend on several factors, including the availability of renewable energy, the cost competitiveness of green hydrogen compared to traditional fossil fuels, and the development of infrastructure to support the production, storage, and distribution of hydrogen.


Electric vehicles (EVs) are also likely to play an important role in India’s energy mix in the future. One of the key drivers of the growth of EVs in India is the need to reduce the country’s dependence on imported oil and reduce its carbon footprint. However, the growth of EVs in India will depend on several factors, including the availability of affordable EV models, the development of a reliable charging infrastructure, and the reduction of battery costs. Additionally, India’s electricity generation mix will need to become cleaner for EVs to truly be a sustainable option.


With the right policies and investment, India can transition to a more sustainable and reliable energy system, which would have significant benefits for the country’s economic development and the health and wellbeing of its citizens.


Mr. Rajiv Menon,
President and COO – Energy and Industrial,
Tata Projects Limited
Simplify. Create.

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