India’s renewable energy share could grow to 13% of the primary energy mix by 2050, provided there is robust policy implementation and resolution of key structural challenges, according to Gauri Jauhar, Consulting Executive Director for Energy Transition at S&P Global Commodity Insights.
In an exclusive conversation with ANI, Jauhar said the future of renewable energy in India largely depends on the path the country chooses to take.
“Renewable energy outlook depends on the scenario we undertake. In our base case scenario, fossil fuels still remain foundational, making up around 67% of the energy mix. However, in a more aggressive green transition scenario—where we see a strong, coordinated policy push, resolution of issues such as rights of way, expansion of transmission infrastructure, functional green energy corridors, and active implementation at the state level—renewables could potentially expand to 13% of India’s primary energy mix by 2050,” she explained.
Nuclear Energy Faces Structural Hurdles
Speaking on nuclear energy, Jauhar pointed out that its progress in India has been slow due to complex liability frameworks and high costs.
“Nuclear energy remains a complicated story because of structural factors related to liability—how much liability is borne by the operator, the supplier, and the government. These issues need to be resolved, simplified, and made more transparent, with safety as the top priority,” she said.
While small modular reactors (SMRs) are gaining global attention, Jauhar noted that they are not yet a viable option for India.
“There is significant global momentum around SMRs, and we’re seeing that interest extend to India as well. However, the technology is still commercially unproven and costs roughly three times more than India’s current pressurized heavy water reactors. As such, integrating SMRs into the country’s energy mix at this stage would be highly challenging,” she added.
Private Investment Depends on Strategic Objectives
Jauhar also highlighted the role of private capital in driving India’s renewable energy growth, noting that investment decisions will vary based on investor priorities.
“If the investor’s objective is growth—such as stock market returns—over value-based outcomes like dividends or return on capital employed, then renewable stocks become a more attractive investment option. Ultimately, it depends on the objective function of the capital source in question,” she said.
