What Happened
- NITI Aayog released a study titled "Scenarios Towards Viksit Bharat and Net Zero" projecting India's power sector fuel mix transformation
- Under the Current Policy Scenario (CPS), renewable energy's share in electricity generation could rise from around 20% in 2024-25 to over 80% by 2070
- Coal's share in electricity generation is expected to decline sharply from the current 74% to 6-10% by 2070 under the same scenario
- Nuclear energy is identified as a key baseload power source to complement the intermittent nature of solar and wind energy
- The study projects that coal power will shift from an energy generation role to an "insurance against shortages" role
- Total installed power capacity is projected to grow 14 times by 2070 in the net-zero pathway, dominated by solar and wind
Static Topic Bridges
India's Net Zero 2070 Target and Climate Commitments
India announced its net-zero emissions target for 2070 at COP26 in Glasgow (November 2021). This was accompanied by the "Panchamrit" — five climate action targets. India's updated Nationally Determined Contribution (NDC) was submitted in August 2022 under the Paris Agreement framework.
- Net Zero 2070: Announced by PM Modi at COP26, Glasgow, November 2021
- Panchamrit targets: (1) 500 GW non-fossil fuel energy capacity by 2030; (2) 50% electricity from renewable sources by 2030; (3) Reduce total projected carbon emissions by 1 billion tonnes by 2030; (4) Reduce carbon intensity of the economy by 45% by 2030 (from 2005 levels); (5) Net zero by 2070
- Updated NDC (August 2022): 45% reduction in emissions intensity of GDP by 2030 (from 2005); 50% cumulative electric power installed capacity from non-fossil fuel sources by 2030
- Paris Agreement (2015, COP21): India ratified on 2 October 2016
- UNFCCC principle of CBDR-RC (Common but Differentiated Responsibilities and Respective Capabilities) under Article 3 — India advocates that developed nations must take the lead in climate action
Connection to this news: The NITI Aayog study provides the first comprehensive government-led modelling exercise showing how India can achieve its 2070 net-zero target while simultaneously pursuing the Viksit Bharat (Developed India) 2047 goal.
India's Renewable Energy Landscape — Current Status and Targets
India has emerged as a global leader in renewable energy deployment. The country's installed renewable energy capacity (including large hydro) has grown substantially, and the government has set ambitious targets under the Panchamrit framework.
- Installed RE capacity (as of January 2025): Approximately 203 GW (including large hydro); approximately 152 GW excluding large hydro
- Solar: Around 90 GW installed; National Solar Mission launched 2010 (Jawaharlal Nehru National Solar Mission)
- Wind: Around 47 GW installed; India is 4th globally in wind energy capacity
- Target: 500 GW non-fossil fuel capacity by 2030 (Panchamrit)
- International Solar Alliance (ISA): Co-founded by India and France at COP21 (2015); headquarters in Gurugram; 120+ member countries
- Green Hydrogen Mission: Launched January 2023; target of 5 million tonnes per annum (MTPA) production by 2030; outlay of Rs 19,744 crore
- Solar capacity projections under net-zero: 3,250 to 5,500 GW by 2070 (NITI Aayog study)
Connection to this news: The study projects that solar and wind will dominate India's future power mix, but this requires massive scaling — from current ~90 GW solar to potentially 5,500 GW by 2070, alongside large-scale battery storage and pumped hydro.
Nuclear Energy — India's Three-Stage Programme and Baseload Role
India's nuclear energy programme follows a unique three-stage approach designed by Homi Bhabha to utilise the country's limited uranium but abundant thorium reserves. Nuclear energy is increasingly viewed as essential for baseload power — providing continuous, reliable electricity that complements intermittent renewables.
- Three-stage programme: Stage 1 — Pressurised Heavy Water Reactors (PHWRs) using natural uranium; Stage 2 — Fast Breeder Reactors (FBRs) using plutonium from Stage 1; Stage 3 — Thorium-based reactors using U-233 bred in Stage 2
- Current installed capacity: 8,180 MW from 24 reactors (as of 2025)
- Target: 22,480 MW by 2031-32 (10 PHWRs of 700 MW each under construction)
- Prototype Fast Breeder Reactor (PFBR): 500 MW at Kalpakkam, Tamil Nadu — expected commissioning delayed multiple times
- India-US Civil Nuclear Deal (123 Agreement, 2008): Opened international nuclear commerce for India; NSG waiver in 2008
- Atomic Energy Act, 1962: Governs India's nuclear programme; Department of Atomic Energy (DAE) reports directly to the PM
- Nuclear Power Corporation of India Limited (NPCIL): PSU responsible for nuclear power generation
Connection to this news: The NITI Aayog study identifies nuclear energy as a "key baseload" source — critical because solar and wind are intermittent and India needs 24/7 reliable power supply for industrial growth aligned with the Viksit Bharat 2047 vision.
Climate Finance — Investment Requirements
Achieving net zero requires unprecedented capital mobilisation. The NITI Aayog study quantifies the investment gap between current policy trajectories and the net-zero pathway, highlighting the need for both domestic and international climate finance.
- Total investment needed for net zero by 2070: USD 22.7 trillion (NITI Aayog estimate)
- Power sector alone: USD 14.23 trillion
- Estimated aggregate finance flows: USD 16.2 trillion
- Financing gap: USD 6.53 trillion — expected to require external sources
- Annual investment required: Approximately USD 500 billion
- Current climate finance flows to India: Estimated at USD 44 billion annually (CPI, 2023)
- Green Climate Fund (GCF): Multilateral fund under UNFCCC; India is both contributor and recipient
- Loss and Damage Fund: Operationalised at COP28 (2023) in Dubai
Connection to this news: The USD 22.7 trillion price tag underscores why India consistently advocates for developed countries to honour their climate finance commitments under the CBDR-RC principle and the Paris Agreement.
Key Facts & Data
- Coal's current share in power generation: 74%; projected 6-10% by 2070 (CPS)
- Renewables' current share: ~20%; projected over 80% by 2070 (CPS)
- Total installed capacity growth: 14 times by 2070 under net-zero pathway
- Solar capacity projection: 3,250 to 5,500 GW by 2070
- Total net-zero investment: USD 22.7 trillion; power sector: USD 14.23 trillion
- Financing gap: USD 6.53 trillion
- Coal demand projected to peak by 2050 at 1.83 billion tonnes (75% rise from current levels)
- Net Zero target year: 2070 (announced at COP26, November 2021)
- Panchamrit: 500 GW non-fossil fuel capacity by 2030; 50% RE share in electricity by 2030