Discuss the key reasons behind the global underinvestment in electricity grids despite rapid growth in renewable generation. How can this mismatch be corrected in the Indian context?
Kartavya Desk Staff
Topic: Infrastructure: Energy
Topic: Infrastructure: Energy
Q5. Discuss the key reasons behind the global underinvestment in electricity grids despite rapid growth in renewable generation. How can this mismatch be corrected in the Indian context? (10 M)
Difficulty Level: Medium
Reference: DTE
Why the question: China is set to account for over 25 per cent of global energy investment in 2025, a stark contrast to developing countries that struggle to mobilise capital for energy infrastructure, according to a new report released on June 5, 2025, by the International Energy Agency (IEA). Key Demand of the question: The question requires an explanation of why grid infrastructure is being underfunded globally despite rising renewable generation, and how India can resolve this imbalance through targeted reforms. Structure of the Answer: Introduction: Introduce the grid-renewable investment mismatch as a growing structural bottleneck in energy transitions globally, especially for emerging economies like India. Body: Mention financial, regulatory, and logistical factors causing global underinvestment in grid infrastructure. Suggest India-specific solutions such as DISCOM reform, faster approvals, and integrated grid planning to address this gap. Conclusion: Conclude by stressing that without grid readiness, clean energy gains will remain underutilised, and India’s transition goals will face serious setbacks.
Why the question: China is set to account for over 25 per cent of global energy investment in 2025, a stark contrast to developing countries that struggle to mobilise capital for energy infrastructure, according to a new report released on June 5, 2025, by the International Energy Agency (IEA).
Key Demand of the question: The question requires an explanation of why grid infrastructure is being underfunded globally despite rising renewable generation, and how India can resolve this imbalance through targeted reforms.
Structure of the Answer:
Introduction: Introduce the grid-renewable investment mismatch as a growing structural bottleneck in energy transitions globally, especially for emerging economies like India.
• Mention financial, regulatory, and logistical factors causing global underinvestment in grid infrastructure.
• Suggest India-specific solutions such as DISCOM reform, faster approvals, and integrated grid planning to address this gap.
Conclusion: Conclude by stressing that without grid readiness, clean energy gains will remain underutilised, and India’s transition goals will face serious setbacks.