Tripling energy demand, nuclear expansion, and urgent grid modernization among key challenges for India’s net-zero transition
India has reached a significant milestone in its energy transition, achieving 50% non-fossil power capacity in 2025—five years ahead of its 2030 target. However, a new joint report by EY and the Confederation of Indian Industry (CII) warns that the road to becoming a developed economy under the Viksit Bharat 2047 vision will demand an unprecedented transformation of the country’s energy landscape.
The report, Eigenvectors of Net Zero Energy Transition: Pathways to Viksit Bharat 2047, projects that India’s primary energy supply must triple to nearly 35,000 TWh by 2047, with non-fossil energy expanding forty times current levels to meet two-thirds of this demand. The analysis underscores that energy transition is not just about technology—it is a multidimensional challenge involving affordability, security, sustainability, and competitiveness.
Clean Energy Ambitions and Risks
Somesh Kumar, Partner & Leader, Power & Utilities at EY India, stressed that India’s net-zero pathway must be designed to balance resilience with inclusive growth.
“The transition is not just a technology challenge—it is a multidimensional optimization problem. Modernizing grids, scaling renewables and nuclear, securing supply chains, and addressing health impacts such as PM2.5 exposure are all critical. By adopting a human-centric approach, India can meet its net-zero goals while ensuring economic and social well-being,” he said.
The report highlights several key challenges:
- Affordability: Energy cost share (ECS) must be contained within 10–11% of GDP to sustain growth.
- Health risks: Rising PM2.5 exposure demands integration of health, energy, and environmental policies.
- Technology reliance: Low-carbon technology imports already account for 0.21% of GDP in FY25, raising concerns about manufacturing self-reliance.
Nuclear Energy: From 8.8 GW to 100 GW
One of the most striking projections is the scale-up of nuclear power. India’s civil nuclear energy capacity, currently at 8.8 GW, is expected to reach 100 GW by 2047. The report calls for greater private sector participation, legal clarity on permissible activities, and robust supply chain development to enable this expansion. It also recommends a framework to involve private players in the proposed Bharat Small Reactors program.
Renewables Outpace Transmission Capacity
While renewable energy growth has been robust, transmission capacity has lagged, creating bottlenecks. The report stresses the urgent need for green corridors and grid modernization to ensure integration of large-scale renewables.
A Defining Moment for Policy
Chandrajit Banerjee, Director General of CII, noted that India’s achievement of 50% non-fossil capacity well ahead of its NDC target demonstrates its global leadership.
“The report highlights that becoming a developed economy by 2047 will require three times more primary energy and a forty-fold scale-up of non-fossil sources. By treating the transition as a multidimensional optimization challenge, the findings provide actionable guidance for policymakers, businesses, and investors,” he said.
The EY–CII study urges a shift from fragmented, target-driven planning to integrated, risk-informed policymaking, balancing affordability, supply security, sustainability, and competitiveness. Done right, India’s energy transition could be transformed into a powerful driver of economic growth, social well-being, and global climate leadership.