Tourism · Gulf Today
The race for green energy is on. New Delhi's plan to create a self-reliant energy ecosystem by expanding its renewable energy footprint is facing a China problem. Solar and wind power plants now make up over 40% of total electricity generation capacity, nearly as much as coal-fired plants, according to data from Niti Aayog.
However, battery-based energy storage solutions—critical for reliability—originate overwhelmingly from China, hampering India’s self-reliance goals. Nearly 80% of these batteries come from China, with only 1% of India’s estimated 260 GWh demand pipeline met domestically. This dependency risks deepening India’s reliance on Beijing, despite recent diplomatic improvements after Modi-Xi Jinping’s Tianjin meeting.
While India is easing investment rules for Chinese firms, it imposes trade restrictions in sectors where it aims for self-sufficiency. Meanwhile, China remains wary of technology transfers to India, fearing it could undermine its global supply-chain dominance. India’s energy security is critical for its manufacturing push, AI development, and data center investments.
Experts warn that curtailment risks—when renewable plants cut generation due to grid capacity limits—could worsen without local battery manufacturing. A decade-long ramp-up is needed for India to reach 140 GWh of local cell manufacturing capacity, according to S&P Global Energy. Despite progress in alternative energy production, its role in enhancing energy security remains limited.
Source: CNBC
