Context
Of late, the World Economic Forum (WEF) reported that India’s Energy Transition secured 71st position in 2025 in the energy transition index. It also said that this time it went down from 63rd in 2024 because of several ‘structural challenges’.
India’s Global Standing in Energy Transition
(a) The World Economic Forum (WEF), along with Accenture, recently released its 2025 Fostering Effective Energy Transition report.
(b) It assessed more than 115 countries based on the Energy Transition Index (ETI). In this assessment of performance as well as readiness for clean energy transformation takes place.
(c) India bagged 71st place with a score of 53.3, down from 63rd in 2024. Also, Sweden was in the top spot with a score of 77.5.
(d) Renewable Energy’s share has increased from 48 GW in 2009 to 204 GW in 2024, achieving a 10% CAGR. Estimated PV capacity for 2025–2029 is 188–278 GW, making India a global leader (IRENA, 2025).
Foundational Challenges
(i) Fossil Fuel Dependence: India comes at the 3rd place when it comes to renewable energy production after China and the USA.
(a) Fossil fuels still dominate the country’s energy mix.
(b) Coal consumption rose to 21.98 Exajoules (EJ) in 2023, up from 6.53 EJ in 1998, marking a 5% CAGR.
(c) Petroleum consumption has also increased, especially in agriculture, between 2022 and 2023 (NITI Aayog)
(ii) Unequal Access to Clean Energy: Disparities in clean cooking fuel access continue to worsen in rural and low-income households:
(a) The Pradhan Mantri Ujjwala Yojana (PMUY) has ensured LPG access to BPL households. However, sustained usage is limited due to cost, supply issues, and inconvenience, leading to fuel stacking (the use of multiple fuels).
Other Challenges
(i) High Fossil Fuel Dependence: Despite progress, fossil fuels still supply the bulk of India’s primary energy. Today their contribution is more than 74%% in greenhouse gas (GHG) emissions.
(ii) Rising Energy Demand: The Country’s primary energy supply has grown by close to 55% in the last decade due to its population explosion and economic growth. Meeting future demand sustainably remains a challenge.
(iii) Emissions Intensity: India has reduced emissions intensity of its GDP by 33% from 2005-2019, but still steep reductions have to be there for the net-zero target.
(iv) Technological Gaps: A Large level of adoption of emerging technologies like green hydrogen, battery storage, and advanced grid management is required for deep decarbonization.
(v) Data & Governance: Precise, time-bound energy data and strong policy frameworks are required for evidence-based decision making and proper monitoring of transition progress.
(vi) Social Considerations: The transition has to be inclusive – ensuring energy access, affordability, and job creation while going through potential transitions in regions that rely on or are dependent on coal.
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Strategies and Initiatives taken
(i) National Solar Mission: Target of hundred GW of solar capacity, promoting grid-connected and off-grid solar projects.
(ii) National Green Hydrogen Mission: Aims to produce 5 MMT of green hydrogen yearly by 2030, with ₹19,744 crore allocated for incentives and R&D.
(iii) PM Surya Ghar: Muft Bijli Yojana: Supports rooftop solar installations for households, with over 17 lakh systems already deployed.
(iv) Production Linked Incentive (PLI) Scheme: ₹24,000 crore allocated to boost domestic manufacturing of solar PV modules and wind turbines.
(v) Viability Gap Funding (VGF) for Battery Energy Storage Systems (BESS): ₹5,400 crore scheme to build 30 GWh of storage capacity.
(vi) Renewable Purchase Obligations (RPOs): Mandate DISCOMs to procure a fixed percentage of power from renewable sources.
Way Forward
(i) Infrastructure and Technology: India has to pay heed to Grid stability, energy storage, and interconnectors. Also. off-grid solutions for electrifying remote regions.
(ii) Green Finance and Industrial Alignment: India needs sound fiscal support to de-risk and expand clean energy projects:
(a) The National Green Hydrogen Mission (2023) provides incentives to states as per their industrial strength.
(b) The National Investment and Infrastructure Fund (NIIF) can help co-finance clean energy projects by lowering systemic investment risks.
(iii) Policy Stability and Long-Term Capital: Stable and accommodative energy policies to attract long-term risk capital. Regulatory clarity to foster investor confidence in India’s energy systems.
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Conclusion
India is persistently demonstrating key strengths, including amelioration in energy efficiency, clean energy investments, and progressive energy policies, even after deteriortion in rankings. A multi-level strategy – reinforcing targeted policies, fiscal mechanisms, and decentralised infrastructure – will be essential to streamline economic growth with sustainable energy goals. We hope the above given information on ‘India’s Energy Transition’ will boost your knowledge and help you in SSB Interviews and other debates too.