An Alternative Higher Growth and Faster Green Energy Transition Policy for India

Our research from new power plants commissioned in FY23–24 shows that RE+storage offers 23% cost savings over coal power, while gas plants are 52% costlier, despite coal subsidies (lower GST, customs duty, and 65% public financing vs. 3% in RE), RE+ storage installs in 1–2 years (vs. 5+ for coal), and uses wasteland preserving precious arable land and water. India’s installed 15 GW last year and ~130 GW of cumulative wind and solar installed capacity is far below the ~ 50–60 GW required to meet demand growth. Replacing $29B coal imports with $2B battery/solar imports could nearly eliminate India’s Current Account Deficit (-ve USD 23 billion for FY23–24). Near-term tariffs would be self-defeating, much like limiting Chinese APIs in pharma. Other QUAD sources exist but nurturing Indigenous options will require long-term efforts. Hence a mindset shift as shown by China’s policy enabling it to install 217 GW of Solar PV and 46 GW of wind is vital, and we recommend ways to re-level the field for RE+storage vs. coal power and accelerate installations 4–5× faster.