Rajasthan, India’s largest state by area, has  unveiled its draft for “Rajasthan Energy Policy 2050” seeking to transition the state towards a sustainable and eco-friendly economy.

2030 Targets: 90 GW of Solar and Wind Power

One of the policy’s targets is to deploy a combined 90 GW of solar and wind capacity by 2030. This leap in renewable energy capacity is expected to generate employment opportunities for approximately 110,000 individuals, spanning various skill sets required for business development, project design, construction, commissioning, and maintenance.

The state also plans to expand its rooftop solar capacity. Rajasthan holds untapped potential in residential rooftop solar, with just 835 MW installed as of September 2022, despite an economic potential of 5.5 GW.

Additionally, Rajasthan is committed to achieving 100% compliance with the National Renewable Purchase Obligation (RPO) trajectory and significantly reducing the Aggregate Technical and Commercial (AT&C) loss levels of power distribution companies (DISCOMs) to just 12–15% by 2025-26, down from a troubling 26.23% in 2021.

2050 Vision: 70% Non-Fossil Energy Generation

Rajasthan’s long-term objectives include envisioning non-fossil energy sources accounting for 70% of electricity generation, from 20% recorded in 2020.

Simultaneously, Rajasthan aims to shrink AT&C losses in the distribution sector to less than 10%, a substantial improvement from the 26.23% level in 2021.

Green Hydrogen

One of the most notable aspects of the policy is its explicit focus on green hydrogen—a pivotal resource for decarbonizing various sectors. Rajasthan currently consumes about 250,000 metric tons of hydrogen. Rajasthan has committed an investment of ₹400 billion (~$4.8 billion) for green hydrogen production. The investment will facilitate the creation of 5 GW of green hydrogen capacity, primarily generated using solar power and advanced electrolysis techniques.

To drive this transformation, the state plans to formulate a comprehensive ‘Green Hydrogen Policy.’

Roadmap for Progress

The policy outlines two broad economy-wide and 14 specific sectoral goals to be achieved by 2050.

• Achieve a 60% reduction in the energy intensity of the state’s economy compared to 2020 levels.
• Reduce total projected carbon emissions by 700 million tonnes from 2020 to 2050.

While Rajasthan’s energy transition holds immense promise, it also faces several challenges. The state must meet growing electricity demand while reducing carbon emissions, enhance the financial health of DISCOMS, and promote consumer engagement to create a decentralized, energy-efficient sector.

Currently, over 70% of the state’s electricity comes from coal-powered generators, contributing to 54% of its total emissions in 2020. If no changes occur, by 2050, electricity demand is projected to surge by 325%, and the power sector’s emissions are expected to rise by 88% compared to 2020. To counter this, the state must aggressively expand renewable energy capacity beyond the current target of 37.5 GW by 2025, requiring substantial efforts to integrate variable renewable energy into the grid.

They will also foster an environment for increased biofuel production by promoting industry collaboration for advanced biofuel technology adoption and workforce development.

Transformation for a Cleaner Future

The policy aims to rapidly reduce industrial energy emissions by increasing grid electricity use, enhancing energy efficiency, and establishing green hydrogen hubs.

By 2030, the policy targets a 40% grid electricity use in industries, up from 32% in 2020. Furthermore, it seeks to achieve global energy efficiency standards in sectors like cement and textiles, establishing Rajasthan as a hub for India’s green hydrogen production.

The transport sector, accounting for a significant portion of carbon emissions and energy demand in Rajasthan, is also in focus. By 2030, the policy aims to achieve a modal share of at least 40% for non-motorized and public transport, with substantial penetration of electric vehicles (EVs). By 2050, it targets an 80% market penetration for EVs and universal electrification of passenger buses and taxi fleets.

By 2030, the policy aims to meet 45% of agricultural power demand with renewable sources, both grid-connected and off-grid. It also targets improved on-farm irrigation efficiency to 40%.

By 2050, the state strives for 75% of agricultural power demand to come from renewables, coupled with a commitment to enhance on-farm irrigation efficiency to 70%.

Rajasthan had the highest cumulative large-scale solar installations, boasting over 16 GW by the end of Q2 2023, representing approximately 29% of the cumulative utility-scale solar capacity, according to Mercom’s Q2 2023 India Solar Market Update.

The Rajasthan Electricity Regulatory Commission recently notified the new renewable purchase obligation for the state to include energy storage and move solar along with biomass into the other RPO category.