Economic Survey 2025: Must Prioritise Grid Infra Investments To Boost Renewable Energy

India must prioritise investment in extensive grid infrastructure improvements and sourcing of critical minerals, to strengthen its renewable energy initiatives, the Economic Survey 2025 said.

Despite India's efforts in reducing the emissions intensity of its energy consumption, growth of renewable energy faces substantial hurdles, particularly in energy storage technologies and the sourcing of critical minerals necessary for this transition.

While alternative solutions, such as green hydrogen, present a viable option for the medium term, affordability issues remain a significant barrier to widespread adoption.

"Furthermore, although nuclear energy could contribute to India's energy mix, its expansion is impeded by a lack of a supportive ecosystem and the monopolistic nature of nuclear fuel supply chains," the survey said.

These challenges in harnessing renewable energy at scale indicate that India will need to continue the efforts to maximise the efficiency of its existing fossil fuel resources in the medium term.

"The advancement and deployment of low-emission thermal power technologies, including Advanced Ultra Super Critical power plants, will play a pivotal role in this transition," it said.

This has come as lessons learned from the experiences of developed economies underscore the risks of prematurely shutting down thermal energy sources, without viable technological alternatives that ensure a stable energy supply.

To develop carbon capture, utilisation, and storage, technology is essential for the continued use and enhancement of thermal power plants in the medium term.

In the agricultural sector, developing climate-resilient seeds and improving agricultural practices, which may include the rejuvenation of water bodies, will be vital in building resilience against climate impacts.