The Vertical strives to provide top-quality policy support to all stakeholders to make India energy-secure. It aims to boost investment to achieve an efficient, sustainable, and clean energy system.

The Vertical makes concerted efforts towards reducing energy import, ensuring an alternative supply of energy and enhancing domestic supply. It seeks to strengthen the energy infrastructure and resolve cross-sectoral issues. The policy framework is geared such that energy is supplied through efficient markets to improve India’s competitiveness and spur economic growth.

Policy Analysis

The Energy Vertical deals with five key sectors: power, coal, petroleum and natural gas, new and renewable energy, and atomic power.

The Vertical examines:

1. Project proposals of SFC/EFC/PIB/PPRs for investment decisions

2. DPRs related to oil and gas, power, new and renewable energy, coal, climate-related issues pertaining to energy, and furnishing comments on technical and financial feasibility

3. Proposals in the form of Cabinet Notes/sector for CCEA, Committee on Establishment Expenditure (CEE)/Cabinet Committee on Security, of Ministries for comments and approval

4. Joint ventures/subsidiary proposal of Ministries

Designing Strategic and Long-Term Policies and Programmes

1. The Vertical provides inputs for formulation of policies/regulations/strategies and vision for the energy sector;

2. It utilises analytical tools/energy modelling in generating long-term scenarios for the supply and demand sides of the energy sector.

Appraisal of Projects Related to Loan Tie-Up from Multilateral Institutions
Examining energy-sector projects of Ministries and furnishing comments to the Department of Economic Affairs, Ministry of Finance, for loan and grant tie-up with multilateral financial institutions (for example, World Bank, ADB, BRICS New Bank etc.).

Infrastructure Review by Prime Minister

1. To coordinate and provide support in organising review meetings on outcome-based energy infrastructure projects, chaired by the Hon’ble Prime Minister of India;

2. To provide support in preparing output-outcome based budget for the Ministries of Power, Coal, New and Renewable Energy, Petroleum and Natural Gas.

Committees and Sub-Committees on Energy Sector

To constitute committees for resolving issues pertaining to the energy sector and preparing policy documents and strategy papers. The energy team is also part of various committees and groups constituted by the Ministries.

Energy Data Management

Robust energy data is essential to formulate and analyze policies for promoting energy access, security and sustainable development. A review report of India’s Energy Data Management revealed that there is a lack of coordination among the energy ministries/departments in the five sectors. A study on the Assessment of Energy Data Management revealed that the collection and analysis of demand sectors' data are weak. To strengthen the energy sector data, the Vertical has taken up the following five activities:

1. Development of India Energy Dashboards

2. Setting up of India Energy Modelling Forum

3. Development of India Energy Security Scenario 2047

4. Development of MESSAGEix Model

5. Development of Geospatial Energy Map of India

• Ministry of Power

• Ministry of New and Renewable Energy

• Ministry of Coal

• Ministry of Petroleum and Natural Gas

• Department of Atomic Energy

Energy Sector Reforms
 

1. A High-Level Committee on Coal Sector was constituted by the Government of India, under the chairmanship of Vice Chairman, NITI Aayog, to provide recommendations for enhancing domestic exploration, production, reduction of imports and for achieving rapid growth in export. Based on the Committee’s recommendations, the Ministry of Coal has notified commercial coal mining. This was launched in June 2020, wherein 41 blocks were offered, of which 19 blocks have been allotted so far.

2. A High-Level Committee on Enhancement of Domestic Oil and Gas Exploration and Production, under the chairmanship of Vice Chairman, NITI Aayog, finalised its recommendations. Based on the recommendations, the policy was approved by the Cabinet and notified. It is under implementation and we may expect results in the next 5–10 years.

3. Transition Towards Green Hydrogen Strategy: Green Hydrogen has proven to be a game-changer in the renewable energy space. India should aim at replacing all grey hydrogen with green. India has the potential to become the world leader in green hydrogen and associated technologies like electrolyzers. The green hydrogen strategy document has undergone several rounds of consultations with different stakeholders, who are encouraging many industries to consider opting green hydrogen. NITI Aayog is supporting the initiatives on the National Hydrogen Energy Mission for promoting green hydrogen.

4. Future Coal Scenario: Various reforms initiatives have been undertaken by the government in the coal sector, including commercial coal mining with no end-use restrictions. At the same time, there is a global move towards clean energy transition. NITI Aayog has initiated a study on the future coal scenario. The report is currently being prepared based on the literature review of eight studies employing bottom-up and top-down approaches to estimate coal requirements.
    

Vision Document 2035

NITI Aayog kickstarted the exercise for drafting Vision Document 2035 for India, with the base year of 2020. The vision intends to provide a broad roadmap for addressing the concerns of energy access, affordability, reliability rational pricing and energy security. The document is under finalisation after due consultations with the relevant stakeholders and the Ministries/Departments.

State Energy and Climate Index

NITI Aayog is working on a State Energy and Climate Index to assess the performance of States based on a number of indicators. These include discoms’ viability and competition, access, affordability and reliability of energy, clean energy initiatives and energy efficiency. The work is in progress and the tool will be designed to assess States’ performance on various energy parameters, which will help them to efficiently manage their energy resources and provide better access to citizens.

India Energy Security Scenario 2047 (Version 3.0)

NITI Aayog has partnered with UK Department of Business, Energy and Industrial Strategy for technical support to update India’s national calculator IESS 2047. IIT Bombay has been selected as the lead downstream partner from India for leading the project. A consortium has been formed with stakeholders from 18 institutes/organisations (industry, academia, government and think tanks/policy research organisations) who would be involved in updating the calculator. 

MESSAGEix

NITI Aayog, with support from IIASA and IIT Kanpur, is developing the MESSAGEix model as an energy optimisation tool.

Geospatial Energy Map of India

NITI Aayog collaborated with Indian Space Research Organisation (ISRO) to develop a comprehensive Geospatial Energy Map of India, which provides a holistic picture of India’s energy sector. This includes the visualisation of spatial and non-spatial data on renewable and non-renewable power plants, oil and gas downstream sector, renewable energy potential, fossil fuel resources, and other energy assets. The Geospatial Energy Map of India will be launched soon. The maps can be accessed here.

India Energy Dashboards

In order to create a one-stop destination for the energy data of the country, NITI Aayog has developed India Energy Dashboards (IED) with the support of the Ministries of Coal, Power, Renewable Energy, and Petroleum and Natural Gas. The IED was launched in April 2021. It can be accessed here. The Vertical is in the process of integrating the demand side data into the India Energy Dashboards based on the reports by the sub-groups. The efforts will also be there to bridge the supply side data gaps.

International Energy Agency (IEA)

NITI Aayog, in collaboration with IEA, has taken up the following activities:
 

1. Power System Transformation Workshop 2020–21: NITI Aayog and IEA organised workshops on ‘Power System Transformation’ in Maharashtra, Gujarat and Karnataka. The objective of these workshops was to bring together the international, national, and state-level stakeholders to address the issues of increasing shares of solar and wind in the grid. The workshops also explored opportunities for flexibility solutions to overcome issues faced by the States with regard to forecasting of solar and wind, transmission challenges, technical challenges, such as inertia, system strength, frequency and voltage issues, demand forecast, etc.

2. Launch of Renewables Integration in India 2021: The analysis in this report is based on the outcomes of national and regional workshops focused on India’s low-carbon transition strategy for renewable energy integration held in 2018 and a series of power system transformation workshops in Maharashtra, Gujarat and Karnataka in 2020 and 2021. The report not only includes outcomes of the workshops but also presents analysis to address future grid integration challenges due to a high penetration of renewables in India by 2030. The report provides an international framework for renewables integration and highlights a full repertoire of power system flexibility solutions. Power system transformation pathways and renewables integration challenges, solutions and priorities are vastly different in States and Union Territories.

3. Capacity building exercise: IEA and NITI Aayog has jointly worked with the States for capacity building and training program better energy data management.

Saudi Centre for International Strategic Partnership (SCISP)

Under the India–Saudi Arab strategic partnership, NITI Aayog has been engaged with SCISP to identify priority areas for strategic investment. Ministries and departments have identified priority areas for discussion.

Lighthouse DISCOM Programme

NITI Aayog has collaborated with Rocky Mountain Institute (RMI) to create the Lighthouse DISCOM programme, which is aimed at identifying reforms that can improve the operational and financial performance of Discoms. A report that draws learnings and best practices from domestic as well as global experience has been published.

Prime Minister’s Interaction with CEOs of Global Oil and Gas Companies

NITI Aayog, in consultation with the Ministry of Petroleum and Natural Gas, organises an annual interaction of the Hon’ble Prime Minister of India with the CEOs of global oil and gas companies. An annual event since 2016, the objective of the interaction is to create a global platform to understand best practices, discuss reforms, and plan strategies for accelerating investments into the Indian oil and gas value chain. This helps in key policy reforms in oil and gas sectors.

Coal to Chemical

A Coal Gasification Committee has been set up under the chairmanship of Dr VK Saraswat, Member, NITI Aayog, to prioritise coal gasification projects in consultation with the Ministry of Coal. A technical standing group has also been created under his chairmanship. The Committee provides policy direction and recommendation for appropriate coal gasification technology suitable for Indian coal gasification projects.

World Bank (USD 1 million) TA for Assessment of Battery Storage

NITI Aayog has been provided USD 1 million as technical assistance (TA) to carry out a study (i) on preparing grid-level policy and regulations framework for energy storage demand (ii) demand study at ISTS (interstate transmission system) level and (iii) demand study at the distribution level (in the state) for energy storage requirement of all kinds. The report is in the final stage and would help for planning of energy storage at grid and distribution levels.

India-USA Strategic Clean Energy Partnership (SCEP)

Under the US–India Strategic Energy Partnership (SEP), NITI Aayog and USAID lead the sustainable growth pillar. Under this, activities such as low carbon technologies, energy data management, transition and decarbonisation of heavy industries are being pursued.

India Climate and Energy Modelling Forum (ICEMF

India Climate and Energy Modelling Forum (ICEMF) is a platform for leading energy experts, think tanks, researchers, modellers and policy makers to collaborate and examine important climate, energy and environment related issues, including their economic linkages, through integrated modelling exercises.

ICEMF was originally institutionalized as IEMF (India Energy Modelling Forum) on 2nd July 2020, under the aegis of the Sustainable Growth Pillar (SG Pillar) of India-US Strategic Clean Energy Partnership (SCEP). To meet the “Panchamrit” commitments made by Hon’ble Prime Minister of India during COP26 at Glasgow, the scope of IEMF was expanded to include climate and economic modelling leading to a revitalised ICEMF.

Mine Developer and Operators (MDOs)

NITI Aayog, in consultation with the Ministries of Mines, Coal, Steel and Finance, finalised the framework for appointment of MDO. The framework has been submitted to the Cabinet Secretariat. Based on the recommendations, 51 mines have been put on development through MDO route.