India’s role in the next era of smarter, cleaner power

India's energy journey in the last six decades

India has committed to achieving Net Zero emissions by 2070^[i], a significant goal for a developing economy. However, coal-based energy production in India reached 80% in early 2024^[ii]. As the world’s second-largest coal consumer, India faces the challenge of transitioning to sustainable energy. This paradox highlights India’s complexity in reducing its carbon footprint while supporting its 1.4 billion people as the third-largest energy consumer after China and the United States. India's energy demand is driven by urbanization, industrialization, and population growth, with coal and oil imports remaining central to its energy needs.

How Is India’s government encouraging change towards cleaner power?

India's shift toward cleaner energy is driven by government regulations, policies, and incentives focused on sustainability. With 65% of its population in rural areas, India adopts a multi-faceted approach, combining renewable energy adoption, infrastructure development, and policy support for urban and rural regions.

The Bharat Stage (BS) emission standards, introduced in the early 2000s and tightened through BS-VI in 2020, control industrial pollution and improve air and water quality.

Key policies supporting India's 2070 net-zero target include the National Hydrogen Mission (2021), which positions India as a global green hydrogen hub, and the National Solar Mission, which promotes rooftop solar panels and solar parks and aims to achieve 450 GW of renewable energy by 2030.

In rural areas, initiatives like the Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and the Saubhagya Scheme aim to provide electrification and decentralized renewable energy. The Perform, Achieve, and Trade (PAT) scheme encourages industries to improve energy efficiency. At the same time, the National Electric Mobility Mission Plan (NEMMP) 2020 and FAME (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles) India Scheme drive electric vehicle adoption and Charging infrastructure development.

India’s comprehensive approach addresses diverse energy needs across economic and social sectors.

Key focus areas to accelerate India’s clean energy journey

While government initiatives and policies play a crucial role in making progress in developing democracies, some key focus areas will show impact sooner than others.

• Widespread adoption of green hydrogen: Hydrogen, especially green hydrogen, is a versatile alternative energy source with low carbon emissions, crucial for sectors like heavy-duty transport and construction. India’s National Hydrogen Mission aims to make the country a global leader in green hydrogen production and export. Cummins is supporting India in this goal by developing hydrogen-powered engines and fuel cell systems, which are crucial for reducing heavy-duty transport and industry emissions.
  • Cummins also collaborates with Tecnimont Private Limited to build one of India’s largest green hydrogen facilities for GAIL in Madhya Pradesh, using advanced Proton Exchange Membrane (PEM) electrolyzer technology.
• Private sector and international collaborations: It is important to remember that India's mixed economy combines government oversight with private sector strengths, such as resources and operational capacity, to benefit the broader population. India’s public-private collaboration, therefore, fosters investment in green technologies like electric vehicles and renewable energy. 
  • Cummins has partnered with Tata Motors in India to develop low—and zero-emission propulsion technologies for commercial vehicles. This private-sector collaboration focuses on creating hydrogen-powered internal combustion engines, fuel cells, and battery electric vehicle systems.
• Implementation of fuel-agnostic and battery electric platforms: Fuel-agnostic platforms designed to operate with various low-carbon fuels—including diesel, natural gas, and hydrogen using a common engine base—are crucial in the transition to sustainability. This is a key focus area for Cummins and presents a significant opportunity to support India in achieving its energy transition goals.
  • Cummins’ fuel-agnostic platform in India offers hydrogen, natural gas, and advanced diesel technologies. This allows users the flexibility to choose fuels based on availability, costs, and infrastructure while still helping reduce emissions across different sectors.
  • Cummins also advances hydrogen-powered internal combustion engines and highly efficient after-treatment systems, like the Single Module™, which reduces pollutants by more than 99%.
  • To support India’s sustainability goals, Cummins is producing CPCBIV+ generator sets that reduce harmful emissions by around 90% compared to previous models. These fuel-efficient generators can smoothly switch from grid to generator power, even in harsh conditions, and feature advanced technology for real-time remote monitoring. The CPCBIV+ standards, effective July 2023, apply to all fuel engines up to 800 kWh, representing some of the country's most stringent emission norms.
• Encouraging smart grids: A smart grid uses digital technology to improve electricity control, monitoring, and management. India’s National Smart Grid Mission aims to enhance energy security, integrate renewable energy, and reduce carbon emissions. This involves upgrading power infrastructure with smart meters, real-time data collection, and remote network management while enabling customers to track usage and adjust consumption during peak hours. These steps create a more resilient, sustainable, and future-ready electricity network to meet growing energy demands and environmental goals.

Overcoming challenges in India's energy transition journey

While government initiatives and private sector partnerships are crucial, several challenges must be addressed to achieve India's ambitious sustainability goals.

India faces international pressure to meet its climate commitments while balancing domestic development needs. The shift to renewable energy, electric mobility, and green hydrogen requires significant investment in technology, infrastructure, and research, which can be challenging in a developing economy. Additionally, sustaining private sector investment requires a supportive regulatory environment; overly restrictive policies could deter investors.

Socially, the transition to green technologies faces hurdles due to low awareness and resistance to change, especially in rural areas where 65% of the population resides. Differences in infrastructure and energy needs between rural and urban areas further complicate the transition. Additionally, cleaner energy sources might increase consumer costs, particularly in rural regions, making it essential to balance affordability with sustainability while gradually reducing fossil fuel dependencies.

Employment in coal mining and related industries will be affected by the energy transition journey. The government will need to plan efforts to retrain workers and create new jobs in green industries.

Despite these challenges, India's position as the world's most populous country and third-largest energy consumer makes its sustainability efforts globally significant. With strong regulatory initiatives, private sector investments and public welfare programs, India is on the right path to achieving its 2070 targets and playing a pivotal role in global sustainability efforts.

^[i] (2020, September 28). "India is committed to achieve the Net Zero emissions target by 2070 as announced by PM Modi, says Dr. Jitendra Singh". Ministry of Science and Technology. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1961797.

^[ii] (2024, March 12). India's coal-fired electricity output & emissions hit record highs. Reuters. https://www.reuters.com/markets/commodities/indias-coal-fired-electricity-output-emissions-hit-record-highs-2024-03-12/.