|Introduction: Explain just energy transition (JET) strategy.|
Body: Explain how India can adopt a just energy transition (JET) strategy.
Conclusion: Write a way forward.
The Just Energy Transition is about a movement towards a lower carbon future, whilst enabling the creation of job opportunities for those displaces by the replacement of coal by these new technologies. The JET occurs in a phased manner over time. It is emerging as the key mechanism for multilateral financing by developed countries to support an energy transition in developing countries.
JET initiative is modelled for the South Africa, to support South Africa’s decarbonisation efforts. JET was launched at the COP26 in Glasgow with the support of the United Kingdom (UK), the United States (US), France, Germany, and the European Union (EU). Following that G7 has announced for a similar partnership in India, Indonesia, Senegal, and Vietnam.
India can adopt a just energy transition (JET) strategy in following manner:
- Acceleration in RE deployment rates: Meeting India’s 2030 target requires accelerating non-fossil capacity addition from 16 GW a year in 2022 to 75 GW a year by 2030, a 22% year-on-year growth.
- For this option is shifting energy demand patterns in ways that enable faster RE capacity addition: solarisation of agricultural electricity demand; electrification of diesel-powered Micro, Small and Medium Enterprises (MSMEs); and decentralised RE for residential cooking and heating.
- Stimulation of energy demand through rural productivity enhancement will further aid RE acceleration as well as help to address the rural-urban economic divide, create rural jobs, and thereby address inter-generational and spatial inequities.
- Domestic manufacturing of clean energy components: Indian components are 20% costlier than Chinese components. The way around this is to negotiate access to markets outside India as part of a JET-Partnership, to reduce the cost gap through economies of scale.
- Re-aligning the current use of coal resources to enhance efficiencies: until the period of phase-down.
- One option is to optimise use of coal-fired power plants closer to where coal is mined rather than based on energy demand in States. This would enable coal to be used more efficiently because transportation of coal is energy-intensive.
- It would also lead to cheaper power; the resultant savings could also help finance much needed emission control retrofits. Finally, it would indirectly reduce emissions due to more efficient use of coal.
Any future JET-P deal must consider broader framework for financing and supporting an energy transition. With India holding the G-20 presidency, it has an opportunity at hand to negotiate a deal for itself while also shaping international cooperation on just energy transitions.