Clean energy for clean transportation in India

Co-authored with Nitish Arora

India, the world’s fourth-largest renewables market and fifth-largest in automobile producer, is also the world’s third-largest oil importer. By transitioning to renewable energy powered electric vehicles, the country can save billions on energy imports, drastically improve air quality in India’s cities, while combating the climate crisis already impacting millions of Indians. Key policies enacted now can have a far-reaching impact in ushering a clean transportation era in the country. 

India has one of the lowest vehicle penetration rates of any major economy and has a unique opportunity to establish a sustainable electrified transportation system. Electric vehicles (EVs) are steadily gaining traction across Indian cities and offer several benefits: improving air pollution, reducing oil import costs, and improving demand profile for India’s beleaguered power sector. Moreover, renewable energy and electric vehicles are also large scale employment generators of the future – potentially creating 13.8 million clean jobs by 2030 according to one estimate.  

The Indian Government, led by NITI Aayog, has proactively developed strong policy initiatives since 2018 to encourage the development of the EV ecosystem in India. Now, as the government is looking to amend the Electricity Act and the National Electricity Policy, the time is right to think futuristically about greening the grid, and subsequently, the transportation sector.

Here are three policy levers that can help unlock the billion-dollar opportunity of powering EVs through renewable energy. 

Transitioning to EVs in India is a major opportunity for revving up the economy, spurring job growth, improving air quality, and reducing carbon emissions. Although electric vehicles are cleaner even with conventional grid power, pairing them with renewable energy can accelerate India’s decarbonization efforts. 

Nitish Arora is Electric Mobility and Clean Energy Expert working as a consultant with NRDC’s India Program.