‘Local manufacturing to be priority in India's quest for supply chain diversification for energy transition’
2 min read . Updated: 03 Apr 2023, 09:26 PM IST
Premium- G20 energy transition working group chair Alok Kumar said that the consensus in the recent meetings has been that renewables will have an important role in reaching net-zero targets, and accessible supply chains will be important
NEW DELHI : As India looks to diversify the supply chain for components required in renewable energy projects, local manufacturing will be a key component of its diversification strategy, said Alok Kumar, secretary for the union power ministry on Monday.
Speaking at a side event ‘Diversifying Renewables & Critical Minerals Supply Chains to Advance Energy Transition’, as part of the second Energy Transitions Working Group meeting under India’s G20 Presidency in Gandhinagar, Gujarat, the secretary also laid emphasis on the need for battery storage and manufacturing of electrolyzers.
Energy Transition Working Group Chair Alok Kumar said that the consensus in the recent Energy Transitions Working Group meetings has been that renewables will have an important role in reaching net-zero targets, and accessible supply chains will be important.
“For a large country like India, diversification of supply chains will mean a lot of local manufacturing, thus generating green jobs. A circular economy and alternative technologies for battery storage will be key too," he said.
Bhupinder Singh Bhalla, Secretary, Ministry of New and Renewable Energy (MNRE) said: “India, under its G20 presidency, takes pride in hosting leaders, experts, government officials, energy sector financiers and other key players to focus on the critical need for a cost-effective and risk-proof scale-up of clean energy through diversified supply chains and distributive expansion of manufacturing base."
Vivek Bharadwaj, Secretary, Ministry of Mines said that the majority of critical mineral reserves are in 15 countries. “The human race has fought many crises – whether the Ozone layer depleting, the Covid pandemic or the energy crisis in the 1970s. I am sure we will be able to address the criticality of minerals too and the Indian government is working towards making the country secure," he said.
Arunabha Ghosh, CEO, CEEW, noted that a speedy, resilient and inclusive transition to renewable energy will only be possible if countries can secure access to uninterrupted and affordable supply chains of key technologies. “Through its G20 Presidency, India could promote comprehensive tracking of global RE manufacturing capacity and trade flows to inform expansion and diversification strategies, and foster competition in trade," he added.
The event witnessed the launch of two reports -- CEEW's ‘Developing Resilient Renewable Energy Supply Chains for Global Clean Energy Transition’, and CEEW, International Energy Agency (IEA), Institute of Transportation Studies UC Davis and World Resources Institute India (WRII)’s report ‘Addressing Vulnerabilities in the Supply Chain of Critical Minerals’. It also featured two panel discussions on securing renewable energy supply chains, and strengthening the mineral value chain by increasing production and infusing circularity.