Context
The World Economic Forum (WEF) recently released its “Fostering Effective Energy Transition 2025” report, assessing the progress of 118 countries towards a secure, sustainable, and equitable energy future. The Energy Transition Index (ETI) evaluates countries based on three main pillars: energy security, sustainability, and equity, alongside five readiness factors—political commitment, finance, innovation, infrastructure, and human capital. The index aims to provide a data-driven framework for policymakers to track and compare global energy transition efforts.
India’s Performance: Ranking and Score
In ETI 2025, India stands at 71, having slumped from its 63rd rank in 2024, although it has witnessed notable improvements in energy efficiency and clean energy investment. Top 5 countries are Sweden(1), Finland(2), Denmark(3), Norway(4), and Switzerland(5). India’s ETI score for 2025 is 53.3, whereas it generates a system performance sub-score of 60.4 and a transition readiness sub-score of 42.7.
Key Drivers of India’s Progress
Improvements in Energy Efficiency and Investment
- Lower Energy Intensity: India has been using energy more efficiently, contributing to lesser energy demand for each unit of GDP produced.
- Clean Energy Investment: The country has far escalated its investments in renewable power and clean technology to further its climate mitigation goals.
- Regulatory Framework: The advance in rules and policies has in turn supported the clean energy sector growth and thereby energy access.
Expanded Energy Access and Equity
- Rural Electrification: Over the past decade, India has made remarkable progress in expanding access to energy and clean fuels, especially in rural areas.
- Reduced Emissions: Efforts to lower methane emissions and improve energy efficiency have complemented India’s climate action plans.
Persistent Challenges
Energy Security and Equity Gaps
- Grid Reliability: Despite improvements, challenges still exist in providing reliable electricity supply, especially in the rural areas.
- Energy Security: Import of fuels is being exercised all the while posing threats to energy security in India.
- Transition Readiness: With a transition readiness score of 42.7, India lies well behind the top performers scores, thus highlighting systemic challenges in education, innovation, infrastructure, and finance.
Global Context and Uneven Progress
- Uneven Progress: Only 28% of countries showed improvement in all three ETI dimensions of security, sustainability, and equity, thus suggesting that the global progress is still uneven.
- Investment Gaps: With $2 trillion of clean energy investments in the world in 2024, emissions were recorded at the highest level ever, thus suggesting the time to gear-up for deployment and innovation is now.
Implications for India’s Energy Future
India may be one of the players who has the potential to influence the global energy transition because of its population, economic size, and high energy demand alongside China, the US, the EU, and Japan. The country has improvised much in energy efficiency, investment in clean energy, and reforms in regulations. Yet, there remain challenges pertaining to energy security, grid reliability, and transition readiness, which need to be tackled for ensuring continued development.
Recommendations for Policymakers
- Improve Grid Reliability: Considerable infrastructure investments are necessary for electricity supply in rural and underserved areas.
- Reduce Import Dependence: One of the energy sources must be considered while increasing domestic production of renewable energy for energy security.
- Enhance Transition Readiness: Reinforce education, innovation, and financial mechanisms aiming forever long-term energy transition goals.
- Leverage Global Partnerships: Collaborate with international stakeholders to fast-track technology transfer and investments in clean energy.
Conclusion
India’s slip to 71st rank in the WEF Energy Transition Index 2025 reflects both its achievements and ongoing challenges. While the country has made notable progress in energy efficiency, clean energy investment, and regulatory reforms, significant gaps in energy security, grid reliability, and transition readiness remain. Addressing these challenges will be crucial for India to achieve its long-term energy transition and climate goals.
Source: thewire.in
UPSC Mains Practice Question
Q. Critically examine this statement in the context of India’s energy policies and transition efforts.
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