Nageswaran emphasised that the expansion of renewable energy should incorporate transition fuels such as natural gas and, more importantly, nuclear power
India's energy transition requires a multifaceted approach and cannot focus solely on renewable energy, stated Chief Economic Advisor V Anantha Nageswaran during a press conference following the presentation of the Economic Survey 2024–25 in Parliament on January 31.
Nageswaran emphasised that the expansion of renewable energy should incorporate transition fuels such as natural gas and, more importantly, nuclear power.
He also highlighted that coal will remain a key component of India's energy mix, even as the country surpasses many others in achieving its nationally determined contributions (NDCs). According to him, India's coal usage has not hindered its progress on NDCs when compared to Western nations.
The Economic Survey noted there has been notable progress in energy generation from non-fossil fuels, including nuclear, hydro and renewable sources. This segment reached 420.8 thousand gigawatt hours in the 2022-23 provisional data, making up 22.8% of the total gross energy generation. Within this, large hydro represents 8.81%, nuclear contributes 2.49% and renewables account for 11.52%.
For electric vehicles, the survey suggested that India’s future policies must broaden their scope of coverage in a manner that adapts to the growing needs of the electric vehicle industry. As demand for EVs is expected to increase, dependence on imported components will likely rise. Policies for EVs must focus on de-risking supply chains by promoting a more self-reliant ecosystem powered by increased R&D in advanced battery technologies.
The survey also underscored China’s dominance in supplying minerals, materials, machinery, and equipment essential for the energy transition. It stressed the need for India to reduce its reliance on imports. "As the world navigates the challenges of climate change, the road to energy transition runs through China," the survey noted.
India's aspiration for low-carbon economic growth presents significant trade-offs. While the nation has made remarkable progress in building renewable energy capacity, effectively harnessing and scaling these resources remains challenging due to the lack of viable storage technologies and limited access to essential minerals, the survey highlighted.