MAINS Current Affairs includes Renewables to Lead India’s Power Mix by 2070 & Rural Transformation Through Decentralisation

Energy

1. Renewables to Lead India’s Power Mix by 2070

Context

A study titled “Scenarios Towards Viksit Bharat and Net Zero” by NITI Aayog projects a major transformation in India’s electricity composition, with renewable energy expected to dominate the power sector by 2070, replacing coal as the primary source.

Current Electricity Scenario in India

Coal continues to form the foundation of India’s electricity generation, contributing nearly 74% of total generation, ensuring reliable base-load supply.

As per global renewable statistics:

• India ranks 3rd in solar capacity,
• 4th in wind capacity, and
• 4th in overall renewable capacity.

India’s total installed capacity stands at around 513 GW, with:

• 48% fossil-based sources,
• 50% renewables, and
• 7% nuclear energy.

However, renewable energy’s contribution to actual generation has increased only modestly—from 19.6% (2013-14) to 22% (2024-25)—indicating utilisation challenges.

Projections Under Current Policy Scenario (CPS)

• Renewable energy share may increase to over 80% by 2070.
• Coal’s contribution could decline sharply to 6–10%.

Constraints in Renewable Energy Expansion

Low Capacity Utilisation Factor (CUF)

Renewables are weather-dependent and intermittent:

• Solar CUF: ~20%
• Wind CUF: ~25–30%
• Coal CUF: ~60%
• Nuclear CUF: ~80%

Coal as Base-Load Support

Coal remains critical for round-the-clock electricity, especially during nighttime when solar output drops.

Storage and Transmission Gaps

• Limited grid-scale battery storage prevents efficient use of surplus solar energy.
• Transmission infrastructure expansion lags behind renewable capacity addition.

Tariff Design Issues

Absence of time-of-day pricing discourages shifting electricity demand to peak solar hours.

Land and Regulatory Bottlenecks

Large renewable projects face land acquisition hurdles and delays in regulatory approvals.

Government Initiatives

• Green Energy Corridor (GEC): Strengthening transmission networks for renewable evacuation.
• PM-KUSUM Scheme: Promotes solar pumps and decentralised solar plants in rural areas.
• National Green Hydrogen Mission: Encourages green hydrogen production to decarbonise hard-to-abate sectors.
• PLI Scheme: Supports domestic manufacturing of solar PV modules and advanced battery systems.
• Renewable Energy Hybrid Policy: Encourages integrated solar-wind projects to improve reliability and CUF.

Way Forward

Grid Modernisation

• Adopt smart grids with real-time demand management and implement time-of-day tariffs.

Expand Storage Infrastructure

• Accelerate deployment of Battery Energy Storage Systems (BESS) through incentives like VGF and PLI.

Promote Hybrid and Decentralised Systems

• Fast-track hybrid solar-wind-hydro projects and expand rooftop solar, mini-grids, and distributed solutions.

Reform Tariff and Market Mechanisms

• Introduce peak/off-peak differential pricing and expand green power trading platforms.

Strengthen Nuclear Power

• Scale nuclear capacity gradually to provide firm, low-carbon base-load power. Encourage development of advanced reactors and Small Modular Reactors (SMRs) for safer and flexible deployment.

Conclusion

India’s energy transition envisions a shift from coal dominance to renewable leadership by 2070. While policy projections are ambitious, overcoming storage, grid, regulatory, and financial challenges will be crucial. A balanced approach integrating renewables, nuclear energy, storage solutions, and smart market reforms will determine the success of this transformation.

Polity

2. Rural Transformation Through Decentralisation

Context

India’s rural development over the past decade reflects a shift from fragmented welfare schemes to a more integrated, decentralised, and community-driven development model.

Decentralisation in Governance

The 73rd Constitutional Amendment Act, 1992 institutionalised Panchayati Raj Institutions (PRIs) as instruments of grassroots democracy, empowering rural communities to actively participate in planning, execution, and oversight of development programmes.

Participation has been strengthened through capacity building, digital tools, community institutions, and participatory planning processes.

Fiscal decentralisation has also expanded:

• Transfers to panchayats under the 15th Finance Commission (2021–26) amounted to around ₹2.36 lakh crore.
• Under the 16th Finance Commission (2026–31), allocations have risen to nearly ₹4.35 lakh crore.

Why Decentralisation Matters

• Deepening Grassroots Democracy: Empowers institutions like the Gram Sabha to make decisions on local priorities.
• Context-Specific Planning: Local bodies are better placed to address agriculture, irrigation, drinking water, sanitation, and infrastructure needs.
• Better Service Delivery: Improves last-mile implementation of schemes such as MGNREGA and rural housing programmes.
• Accountability & Transparency: Proximity between elected representatives and citizens enhances responsiveness and strengthens social audit mechanisms.
• Cooperative Federalism: Encourages fiscal autonomy through State Finance Commissions and Finance Commission grants.

Challenges

• Incomplete Devolution: Several States have not fully transferred Functions, Funds, and Functionaries to PRIs.
• Financial Constraints: Heavy reliance on central and state grants, with limited capacity for raising own-source revenues.
• Capacity Gaps: Shortage of skilled personnel and technical expertise affects effective governance.
• Elite Capture: Local power structures sometimes dominate decision-making; women representatives may face proxy representation.
• Weak Gram Sabhas: Low participation, irregular meetings, and limited awareness reduce their effectiveness.
• Transparency Deficits: Inadequate auditing and digital oversight create risks of fund misuse.

Achievements in Rural Development

• Extreme poverty reduced to 3% (2022–23); multidimensional poverty declined to 11.28%.
• Women-led collectives under DAY-NRLM mobilised 10+ crore women across 90 lakh SHGs.
• Rural road connectivity strengthened, with PMGSY allocation increasing significantly.
• Over 7 crore rural houses constructed under PMAY-G, with major budgetary expansion.

Key Government Initiatives

• Rural development budget increased by over 211% between 2016–17 and 2026–27.
• Model Youth Gram Sabha (MYGS) promotes civic engagement among students.
• Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) enhances PRI capacity through training and e-governance.
• Women-led institutions under Deendayal Antyodaya Yojana–NRLM serve as engines of rural transformation.
• Community Resource Persons (Bank Sakhis, Krishi Sakhis, Pashu Sakhis, etc.) strengthen local institutional functioning.

Conclusion

India’s rural development approach has evolved into a decentralised and community-centric framework. By empowering Panchayati Raj Institutions and women-led collectives, rural India is emerging not merely as a beneficiary of schemes but as a central force driving inclusive growth, democratic participation, and sustainable development.

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