India's Shift from Fossil Fuels to Renewables by Decade's End: RBI Report

The Reserve Bank of India reports that fossil fuel dominance in electricity generation will end by this decade's end, with renewables expected to surpass 50% globally. The report highlights increased investments in low-carbon energy essential for aggressive emissions cuts and meeting future net-zero targets.

The Reserve Bank of India (RBI) has projected an end to the dominance of fossil fuels in India's electricity generation by the close of this decade. According to their latest report, the share of renewable energy in global electricity production is expected to surpass 50% in the same timeframe.

The report notes a significant acceleration in the energy transition, driven by record levels of clean technology deployment and capital investment. The rise of cleaner power generation presents a crucial opportunity to address 'hard-to-abate' sectors like steelmaking and aviation, where low-carbon alternatives remain underdeveloped.

RBI emphasized that to achieve the net-zero emissions target by mid-century, investment in renewable energy must significantly outpace that in fossil fuels—by a ratio of three to one. Achieving a fully decarbonized global energy system by 2050 is projected to require an estimated investment of USD 215 trillion.

Despite the scale of these challenges, the report expresses optimism. It stresses the importance of balancing public policy interventions with market-based competition to ensure a successful energy transition. Positive strides in financial inclusion are also noted as the world progresses towards a sustainable energy future.

(With inputs from agencies.)