New Delhi: The dominance of fossil fuels in India's electricity generation is projected to end by the end of this decade, according to a recent report by the Reserve Bank of India (RBI). The report highlights that renewable energy is expected to capture over 50% of the global electricity generation market by 2030. It also noted that the energy transition has gained significant momentum in recent years, with clean technology deployment and capital investment reaching record levels.
"The era of fossil fuels' dominance is coming to an end, with renewables expected to cross 50% of electricity generation globally by the end of this decade," the RBI report said.
The report further emphasized that the rise of cleaner energy provides an opportunity to tackle "hard-to-abate" sectors such as steelmaking and aviation, where low-carbon solutions are still in the early stages of development. The RBI underscored the importance of increasing investments in low-carbon energy.
"Cleaner power generation can drive the majority of the aggressive emissions cuts that are urgently needed, allowing more time to address 'hard-to-abate' areas like steelmaking and aviation, where cost-competitive low-carbon solutions have yet to scale," the report added.
The report also noted that for every dollar invested in fossil fuels, an average of three dollars should be allocated to renewable energy in the coming years. This marks a significant shift from the current scenario, where investments in both fossil fuels and renewables are nearly equal. The RBI highlighted that tripling renewable energy capacity by 2030 is crucial to achieving net-zero emissions by mid-century.
"On the energy supply side, for every US dollar that goes to fossil fuels, an average of three dollars needs to be invested in low-carbon energy over the remainder of the decade," the report said.
The RBI also projected that fully decarbonizing the global energy system by 2050 would cost an estimated USD 215 trillion. Despite the challenges, the report expressed optimism about ongoing efforts to green the financial sector, emphasizing that the right balance between public policy and market-based competition will be essential for a successful energy transition.
Additionally, the report noted that financial inclusion has significantly improved as the world advances toward a more sustainable energy future.
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