Why does the economic survey cover energy and climate change?

Sustainable Development, Energy and Climate Change find mention in the Economic Survey for a second straight year. Climate change is in fact mentioned in two chapters, with one chapter looking at the impact of climate change on agriculture. (Climate Change, Sustainable Development and Energy)

Sustainable Development

The government plans to setup a committee with NITI Aayog at the helm to track the implementation of Sustainable Development Goals (SDG). The SDG no 7 , access to energy is a crucial component to India’s progress. In addition to that, affordable urban housing is key and India is likely to have 7 mega cities with population of 10million+ by 2030.

Access to clean energy

The highlight of 2017, was the announcement of Saubhagya scheme, with a target to electrify the 40 million odd households by 2018.

The economic survey identifies another key issue, access to clean cooking which unfortunately is lacking in India.


On the positive side, the percentage of Renewable Energy (RE) has been increasing year on year with a significant contribution from solar power projects which has seen rapid decline in tariffs. (Read more:Solar bids, no more outliers)

SolarTrendShare of RE

Climate Change

It is no surprise that climate change has been covered in two different chapters of the economic survey. The impact of climate change has been increasingly felt in India in recent years especially in the agricultural sector.

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There is one positive on the forest cover change in India, if the survey findings are correct.


Although the economic survey mentions about State level action on climate change there is not much progress on this front at the state level. On a different but important note, Delhi’s woes in tackling air pollution has been a major talking point in recent years.

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Budget 2018-19

One of the key takeaways from the economic survey reports, is an indication towards the annual budget and this year it was no different. The increased budget outlay for smart cities is a clear indication of the economic survey findings on the state of Indian cities. The Ujjwala scheme found mention in the budget speech and also saw an increased outlay, again building up on the findings of the economic survey. Saubhagya as expected featured prominently in the budget speech with the target year being 2018. The air pollution woes of the national capital Delhi also found mention with a special package announced to stop the burning of crop residues.

Overall, the economic survey in the last couple of years has increasingly emphasized on energy, climate change and sustainable development. India is also spearheading the International Solar Alliance which also finds mention in this year’s economic survey. The analysis that looks at the correlation between agriculture and climate change is very interesting and with increasing use of analytic tools the survey documents is definitely a good read.

Reference documents : Climate Change and agriculture; Sustainable Development, Energy and Climate Change


Is it too late for a public consultation on Electric Vehicles (EV)?

NITI Aayog earlier this month released a Public Consultation document on Zero Emission Mobility. The document as it claims, aims to align with the Government of India’s vision to have a policy that facilitates a transition only Zero Emission Vehicle (ZEV) sale in 2030. The consultation specifically seeks opinions on 12 aspects on the proposed policy namely

  • The global scenario of ZEV in the past few years and future forecasts in terms of technology and performance.
  • Prioritizing the first adopters of ZEV: Which category of vehicles should be prioritized, whether public of private fleet?
  • Charging Infrastructure
  • Manufacturing: Policy options to promote manufacturing of EVs and batteries
  • Balancing energy demand for EVs with influx of Renewable Energy (RE)
  • Regulatory reforms/amendments
  • Fiscal and non-fiscal incentives
  • Promoting Research & Development (R&D) in EV and energy storage
  • Skill development
  • Recycling and treatment at end of life of EV and battery
  • The general user perspective of EVs
  • Potential impact on the automobile industry

NITI Aayog’s open consultation is a welcome step considering it is looking to formulate a road-map that involves multiple government ministries. For once, it is a real test of its ability to break the silos in the government and get every ministry on board through this policy, the very purpose it was entrusted to do at inception.

India’s ambitious Electric Vehicle vision: What does it mean?

Is it too late?

As it stands, the draft of the national Electric Vehicle (EV) policy was first submitted to the inter-ministerial group around September-October 2017. There has been no traction at the ministry level ever since. In the mean time, Karnataka has come up with a comprehensive policy on energy storage and electric vehicles and Telangana is close to releasing its policy.

Irrespective of what happens with the existing draft of the EV policy, there is not much that can get into it from the public consultation that NITI Aayog is currently hosting unless the proposal is any radical step. Sources from the team have already confirmed to me that they are already aware of the popular schemes and are definitely not keen to hear them again through this process. On the other side, the entire process could actually delay the release of a policy. It is definitely a welcome step to open the doors for public consultation, but NITI Aayog should focus its efforts on plugging the regulatory hurdles that are already known. It would enable private players to actual invest and create a market rather than wait for a full policy. All said, now that an opportunity is given, I will definitely submit my views.

Reference:Zero Emission Mobility. (Full document)


Renewable Energy in India, 2017: A review

The year 2017 has been yet another landmark year for the Indian energy sector. At a national aggregate level India recorded net surplus energy for the first time. It also turned to be a net exporter of energy.  Renewable Energy capacity addition accounts for more than 50% of the total capacity added in this year.  Starting with national level policies, we had the Goods & Service Tax rollout in July. Although electricity supply has been kept out of the GST purview, its impact is felt considering the project development costs saw a price correction in the market. At a high level, there was a change at the ministry with R K Singh replacing Piyush Goyal as the Power Minister.

A comprehensive National Energy Policy was promised to be out by end of 2017 but we only had the release of draft version in June. The draft policy did receive critical feedback on how the supply and demand scenarios’ were forecasted running up to 2040. In a recent comment, the government has said the policy is close to being finalized.

The year in review was discussed in two parts on the Emerging Tech Radio, a podcast that I host. On the first part, Harsh Thacker joined the conversation.

Similarly, a draft policy on introduction of energy storage systems was proposed and again the industry is eagerly looking forward to the final version on that.

On the projects front, large scale project tenders was the order of the day. Wind power projects which for long has sustained on Feed in Tariffs at state level had to compete on a competitive tariff determined through reverse auctions. Solar tariffs first breached 3 rupee/unit mark in the bid for Rewa solar project in Feb and subsequently saw further bids stay below the mark. (Read more about solar bids)

Renewable Energy projects in India: A year-end discussion with Vish Iyer on the second part of the year-end review.

A big news that brought some cheer in the year was the release of the greening of grid report, a report that concluded that integration of 175GW of RE would be a possibility by 2022. The study was a collaboration between the Indian and US governments through the PACE-D programme. However, the analysis did leave some experts asking for details. For e.g. the report claimed energy storage wouldn’t have a great impact on grid integration and was not considered in planning. In return, grid balancing was mainly considered with hydro, gas and thermal power plants. The analysis expects the thermal power plants to operate below their current minimum requirement of 55% PLF.

The economic survey that precedes the union budget had valuable insights as expected. However, an interesting analysis came in the second part of the report released in the second half of the year. The Chief Economic Adviser in the chapter Climate Change Sustainable Development and Energy highlights the energy trajectory in India like projecting RE would account for a 43% of total grid capacity by 2027. The survey chapter also looks at the costs and benefits of different energy sources. Like for instance, looks at the record low solar tariffs and asks a question on whether there is an opportunity lost in land given for solar if they tend to under-perform etc. However, the report did leave some unanswered questions in terms of showing a low social cost for per unit of electricity from coal in comparison to renewables. (Read more about the analysis)

Forum of Regulators signed MoU with National Association of Regulatory Utility Commissioners (NARUC) the US body that represents the state public service commissioners. The MoU is part of the USAID’s PACE-D project, ‘Greening the Grid’. The partnership also aims to look at sharing experience in market design between the two countries.

So yes, there is optimism in the industry (ME INCLUDED). With a new minister at the helm, there have been some radical steps taken in the last few months which has created a new wave of enthusiasm in the sector. As Vish  mentioned in the podcast a few times (above), the RE industry now sees a transformative phase as India marches on towards an ambitious goal of 175GW of RE by 2022.

On a personal note, wrapping up five years of blogging on this platform (In case you missed my 5 year review as a clean-tech evangelist, here). More to come for sure. Just that it’ll also include integration of my audio blogging platform aka podcast.