New Delhi
The Reserve Bank of India (RBI) has stated that the dominance of fossil fuels in India’s electricity generation will end by the close of this decade. According to a recent report, renewable energy is expected to account for over 50% of global electricity generation by the same period. The report highlighted that the energy transition has gained momentum, with increased deployment of clean technology and record-level capital investment.
It was noted that the growth of cleaner power generation presents an opportunity to address ‘hard-to-abate’ sectors such as steelmaking and aviation, where low-carbon alternatives are still in the early stages. The RBI emphasized the need for greater investment in low-carbon energy to facilitate this transition.
For each dollar spent on fossil fuels, the report recommended that three dollars be allocated to renewable energy over the coming years. This represents a significant increase from the current investment ratio, where fossil fuels and renewables receive equal funding. A threefold increase in renewable energy capacity by 2030 is seen as necessary to achieve net-zero emissions by mid-century.
The cost of a fully decarbonized global energy system by 2050 is estimated at USD 215 trillion, according to the report. The RBI remains optimistic, suggesting that balancing public policy interventions with market competition will be critical to accomplishing this energy transition. Additionally, the report highlighted the progress made in financial inclusion as efforts continue toward a more sustainable energy future.
