Economic Survey calls for policy roadmap for pace of shift from fossil-fuel sources to Renewable Energy

The country needs a policy roadmap for clarity about the pace at which it wants to make a shift from conventional fossil-fuel based sources to determine investments in the renewable energy generation sources, the Economy Survey said.
“The pace will determine the extent and mix of investment in renewable sources of energy,” the survey tabled in Parliament on Monday said.

Emphasizing on encouraging R&D to fasten the transition, the survey said, “With the developed countries as frontrunners of net-zero emission plans, it is important to avoid the risk of being a late comer. The inelastic supply of minerals is already increasing the prices of minerals which is likely to shoot up even further in the future.”

The two main pillars for mitigation action to achieve net-zero carbon ambition are transition to clean and renewable sources of energy and storage of this energy, it said.

The survey quoted a World Bank report on Minerals for Climate Action that this transition from conventional fossil fuel-based energy to clean energy as well as battery storage will be mineral intensive.

Minerals and metals like copper, aluminum, iron, manganese, nickel etc are critical for developing clean energy sources like solar PV, wind, nuclear while minerals like lithium and graphite are important for energy storage, it said.

It said the energy crisis being experienced by Europe brings to the fore the need for having a diversified mix of sources of energy of which fossil fuels are an important part.

“The recent surge in prices of natural gas in Europe on account of higher energy demand coupled with cold spells across the region and slower winds to run wind turbines has resulted in lower electricity output. Simultaneously focus should be laid on building storage for intermittent electricity generation from solar PV and wind farms to ensure on-demand energy supply,” it said.