Page 53 - Policy Economic Report - July 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Surya Ghar: Muft Bijli Yojana, solar park development, and the National Wind-Solar Hybrid Policy have
laid a strong foundation for this transformation. The bioenergy sector, which was once on the margins,
has now become an important contributor to both rural livelihoods and clean energy generation.

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) has empowered lakhs
of farmers by providing solar-powered pumps, enabling energy-secure and sustainable agriculture. The
scheme has also opened avenues for agrovoltaics and feeder-level solarisation. The PM Surya Ghar
scheme, launched in 2024, has brought about a rooftop revolution by making solar energy accessible to
one crore households, fostering decentralised energy generation and empowering citizens as energy
owners.

Expanding Renewable Base with Co-Benefits

Solar parks across the country have facilitated utility-scale renewable energy installations at record-low
tariffs. Wind energy, particularly in states such as Gujarat and Tamil Nadu, continues to play a vital role in
meeting the country’s evening peak power demand. The bioenergy sector has advanced considerably,
contributing to circular economy objectives and providing significant employment opportunities in rural
areas.

These initiatives have not only decarbonised the power sector but have also delivered widespread co-
benefits—enhanced energy access, employment generation, reduced air pollution, better public health
outcomes, and stronger rural incomes. India’s clean energy revolution is as much about inclusive growth
and social justice as it is about reducing emissions.

India’s Global Leadership in Climate Action

India’s progress assumes greater significance in the global context. Despite having one of the lowest per
capita emissions globally, India remains among the few G20 countries that are on track to meet—or even
exceed—their NDC commitments. At international platforms such as the G20 and the Conference of
Parties (COP) to the United Nations Framework Convention on Climate Change, India has consistently
advocated for climate equity, sustainable lifestyles, and low-carbon development pathways.

By achieving the 50% non-fossil milestone well ahead of schedule, India further reinforces its leadership
as a clean energy frontrunner, demonstrating that economic growth and environmental stewardship can
go hand in hand.

Towards a Modern, Inclusive Energy Future

This early achievement provides an opportunity to aim even higher. The next phase of India’s energy
transition must prioritise quality, equity, and resilience in clean energy access. Key focus areas include
doubling per capita clean electricity consumption, especially in rural and underserved regions, by
promoting distributed renewable systems and energy-efficient appliances. There is a need to build a
robust, digitally integrated electricity grid that can effectively manage high levels of renewable energy
penetration, demand fluctuations, and two-way power flows.

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