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India’s ascent to the fourth-largest global economy is intricately linked to transformative strides in its energy sector. Over the past decade, comprehensive structural reforms and pioneering innovations have not only bolstered energy security but also catalyzed sustainable economic growth and development.

Structural Reforms in the Energy Sector Supporting Economic Growth

• Coal Sector Reforms: Implementation of the Coal Mines Special Provisions Act 2015 led to record coal production of 893.19 MT in FY23, marking a 57.8% growth since FY14.
• Power Sector Transformation: Addition of 196,558 MW generation capacity since 2014 and achievement of “One-Nation, One Grid – One Frequency” ensured consistent power supply.
  Example: Rural power availability increased from 12 to 20.6 hours(2023), boosting rural productivity.
• Renewable Energy Expansion: India ranks 4th globally in renewable energy installed capacity, with a target of 500 GW by 2030.
  Example: As of April 2025, solar power capacity reached 107.94 GW, reducing dependence on fossil fuels.
• Electrification Initiatives: Schemes like Saubhagya achieved near-universal household electrification, enhancing quality of life.
  Example: Over 28 million households electrified since 2017 under Saubhagya Scheme, fostering inclusive development.
• Energy Efficiency Measures: Programs under the National Mission for Enhanced Energy Efficiency (NMEEE)led to significant energy savings.
  Example: NMEEE has avoided capacity addition of 19,598 MW and reduction of 98.55 million tonnes of CO₂ emissions annually.
• Petroleum Sector Reforms: Adoption of BS-VI standards and promotion of biofuels improved fuel quality and reduced emissions.
  Example: Ethanol blending is aiming for 20% blending by 2025-26, saving ₹85,000 crore in foreign exchange.
• Hydropower Development: Expansion of pumped storage capacity to nearly 4,800 MW enhanced grid stability and energy storage.
  Example: Additional 2,780 MW under construction as of December 2023, supporting peak load management.

Innovations in the Energy Sector Supporting Economic Growth

• Solar Energy Initiatives: Launch of National Solar Mission and development of large solar parks accelerated solar adoption.
  Example: Bhadla Solar Park in Rajasthan generates 2,245 MW, contributing to energy diversification.
• Battery Energy Storage Systems (BESS): Deployment of BESS improved renewable energy integration and grid reliability.
  Example: Delhi inaugurated South Asia’s largest 20-MW BESS, benefiting over 100,000 residents with stable power supply.
• PM-KUSUM Scheme: Promotion of solar-powered irrigation reduced diesel dependence in agriculture.
  Example: Installation of 2.73 lakh  standalone solar pumps by october 2023 , enhancing farmer incomes and sustainability.
• Green Hydrogen Development: Establishment of incubation centers for green hydrogen fostered clean energy entrepreneurship.
  Example: MoU between The National Institute of Solar Energy (NISE) and the National Solar Energy Federation of India (NSEFI) to promote innovation in green hydrogen technologies.
• Energy Access Solutions: Deployment of decentralized renewable solutions like micro-grids improved rural electrification.
  Example: Tata Power initiative electrified 10,000 villages, bridging the urban-rural energy divide.
• Electric Vehicle (EV) Promotion: Incentivization of EV adoption reduced urban pollution and oil imports.
• International Collaborations: Trade agreements focused on critical minerals ensured resource availability for clean energy technologies.
  Example: India-Australia negotiations aimed at securing critical minerals essential for renewable energy expansion.

India’s strategic structural reforms and innovative approaches in the energy sector have been instrumental in propelling its economic ascent. By enhancing energy security, promoting sustainability, and fostering inclusive growth, these initiatives have laid a robust foundation for India’s continued development and global leadership in the energy domain.

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