India requires $50 billion each year for energy transition
POWER & RENEWABLE ENERGY

India requires $50 billion each year for energy transition

According to Prof. Ajay Kumar Sood, the Principal Scientific Adviser (PSA) to the Government of India, India will need an annual investment of $40-50 billion over the next fifty years to meet its energy transition goals. While addressing the Economic Times Energy Leadership Awards, Prof Sood highlighted the complexities involved in decarbonisation and stressed the urgent need to transform India's energy consumption patterns to achieve the net-zero target by 2070.

He emphasized that as India aspires to become a $5 trillion economy by 2047 while simultaneously pursuing its net-zero target, significant transformations in energy production and consumption are essential. Prof Sood pointed out India’s aim to fulfill 50 per cent of its energy needs with renewable sources by 2030, which he referred to as a “dual challenge” that requires both economic growth and climate action.

Furthermore, Prof. Sood linked the growth of India’s Human Development Index (HDI) with energy consumption, indicating that as the country progresses towards higher economic development, its energy requirements will increase significantly. He explained that to achieve an HDI of 0.9, India’s per capita energy consumption would need to rise to 56 gigajoules per year. He also noted that this growth would depend on factors such as enhanced electrification, urbanization, and the adoption of advanced technologies like green hydrogen, low-carbon solutions, and innovations in photovoltaic technologies.

He referenced a recent report titled ‘Synchronizing Energy Transition Towards Possible Net Zero for India’, prepared by IIM Ahmedabad, which underscores the necessity for substantial technological interventions. The report predicts that India’s energy mix will require a diverse array of technologies to meet the demands of its expanding economy and facilitate the transition to net-zero emissions. Prof. Sood mentioned that the report compares various energy mix scenarios to identify combinations that could assist India in reaching its net-zero target.

Additionally, Prof Sood identified carbon capture, utilization, and sequestration (CCUS) as a crucial tool for reducing CO2 emissions, asserting its significant role in the transition. He remarked that carbon markets would be vital in promoting CCUS by establishing a price on carbon emissions and encouraging investments in emission reduction technologies.

On the topic of green hydrogen, Prof. Sood noted the government's advancements, stating that a significant portion of the green hydrogen produced in India would be aimed at the export market. He added that the government has adopted a “whole-of-government approach,” with various ministries—including steel, power, and transport—collaborating to implement the green hydrogen mission.

According to Prof. Ajay Kumar Sood, the Principal Scientific Adviser (PSA) to the Government of India, India will need an annual investment of $40-50 billion over the next fifty years to meet its energy transition goals. While addressing the Economic Times Energy Leadership Awards, Prof Sood highlighted the complexities involved in decarbonisation and stressed the urgent need to transform India's energy consumption patterns to achieve the net-zero target by 2070. He emphasized that as India aspires to become a $5 trillion economy by 2047 while simultaneously pursuing its net-zero target, significant transformations in energy production and consumption are essential. Prof Sood pointed out India’s aim to fulfill 50 per cent of its energy needs with renewable sources by 2030, which he referred to as a “dual challenge” that requires both economic growth and climate action. Furthermore, Prof. Sood linked the growth of India’s Human Development Index (HDI) with energy consumption, indicating that as the country progresses towards higher economic development, its energy requirements will increase significantly. He explained that to achieve an HDI of 0.9, India’s per capita energy consumption would need to rise to 56 gigajoules per year. He also noted that this growth would depend on factors such as enhanced electrification, urbanization, and the adoption of advanced technologies like green hydrogen, low-carbon solutions, and innovations in photovoltaic technologies. He referenced a recent report titled ‘Synchronizing Energy Transition Towards Possible Net Zero for India’, prepared by IIM Ahmedabad, which underscores the necessity for substantial technological interventions. The report predicts that India’s energy mix will require a diverse array of technologies to meet the demands of its expanding economy and facilitate the transition to net-zero emissions. Prof. Sood mentioned that the report compares various energy mix scenarios to identify combinations that could assist India in reaching its net-zero target. Additionally, Prof Sood identified carbon capture, utilization, and sequestration (CCUS) as a crucial tool for reducing CO2 emissions, asserting its significant role in the transition. He remarked that carbon markets would be vital in promoting CCUS by establishing a price on carbon emissions and encouraging investments in emission reduction technologies. On the topic of green hydrogen, Prof. Sood noted the government's advancements, stating that a significant portion of the green hydrogen produced in India would be aimed at the export market. He added that the government has adopted a “whole-of-government approach,” with various ministries—including steel, power, and transport—collaborating to implement the green hydrogen mission.

Next Story
Infrastructure Transport

India to Form Consortium, Launch Bharat Shipping Line to Boost Trade Ties

India plans to establish a consortium involving equity participation by public sector enterprises to bid for operating overseas port asset. The stakeholders in this entity, tentatively named Bharat Global, will include the Indian Port Rail & Ropeway Corporation, Sagarmala Development Company, and the Shipping Corporation of India (SCI). A senior official remarked, “The consortium will replicate the Chabahar port model in other strategic locations.” India also plans to operationalise Bharat Container Shipping Line as a vertical within SCI to mitigate global trade disruptions. The move ali..

Next Story
Infrastructure Energy

ISTS-TBCB Projects Award Rs1 Trillion in 9MFY25

India Ratings and Research (Ind-Ra) has maintained a Stable rating outlook for transmission projects for FY26, supported by consistent regulations and expectations of steady operational performance. The agency highlighted significant capital expenditure plans and project awards during the first nine months of FY25 as major positives for the sector. Among 58 commissioned projects, only eight were completed on schedule, while the rest experienced an average delay of nine months. The Central Electricity Regulatory Commission (CERC) has been granting time extensions for delays caused by force ma..

Next Story
Infrastructure Energy

NTPC Group Reaches 350 BU Mark in 295 Days, 11 Days Before FY24

NTPC Group has set a new record in power generation, achieving 350 Billion Units (BU) of electricity production in the financial year 2024-25. This milestone was reached on January 20, 2025, marking the fastest accomplishment of this scale in the company’s history. It was achieved in just 295 days, which is 11 days earlier than the same milestone achieved in the previous financial year on January 31, 2024. The company boasts an installed capacity of 76.5 GW and has 29.5 GW of capacity under construction. This includes 9.6 GW of renewable energy projects, highlighting NTPC's focus on clean e..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000