Covid Hurdle in Global Energy Transition

Context: Pandemic induced vulnerabilities of global energy system should not obstruct the Paris agreements target of global cleaner energy transition.

Need for Global Energy Transition

• The production and consumption of energy accounts for 2/3rd of annual global anthropogenic emissions.

• To fulfill Nationally Determined Contributions (NDC) and keep global temperature in line with Paris agreement. 
• Vulnerabilities exposed by Covid-19 pandemic: Requires reallocation of resources and a collective conviction.
• Economic dimensions of energy transition: 

• Destabilized global energy system due to drop in energy demand.
• Accompanying price volatilities (fiscal implications and impacts the livelihoods of millions of energy sector workers) 
• Geopolitical implications alters competitiveness of renewable energy technologies and reduces incentives for energy efficiency. 

• Energy transition roadmaps need to be integrated with global disruptions for sustainable economic growth and social development.

India and Global Energy Transition

• India with consistent progress (since 2015) in The World Economic Forum's Energy Transition Index (ETI) has improved on dimensions of the energy triangle:

• Economic development and growth

• Energy access and security

• Environmental sustainability. 

• Strong political commitment: enabling policy environment, ramping up installation of renewable sources of power supply, enacting measures to address indoor pollution through clean cooking fuels, and achieved gains in efficiency of domestic appliances and lighting.

Improvement opportunities 

• Scaling up renewable power generation to a new target of 275 gigawatts by 2027.

• De-carbonization of sectors like heavy industry and freight transport

• Modernizing the power sector infrastructure.

• Improving levels of regulations and political commitment, capital and investment, and technology development.