MODULE 3 - Sectoral Actions for Energy Transition

The Indian Energy Transition Series

Sectoral Actions for Energy Transition | Module 3 | The Indian Energy Transition Series - Heinrich Böll Stiftung Delhi

video-thumbnail Watch on YouTube

Module 3 -Sectoral Actions for Energy Transition

(Playtime - 5:51)

This video breaks down how India’s major sectors — industry, transport, buildings, MSMEs, and agriculture can shift to cleaner energy, and why some sectors are easier to decarbonize than others.

🔑 Key Takeaways
  • India’s major sectors—industry, transport, buildings, MSMEs, and agriculture—must transition differently for the country to meet its clean energy goals

  • Electrification can cut emissions in many areas, but heavy industries need additional solutions like green hydrogen

  • MSMEs represent one of India’s biggest opportunities for fast, cost-effective clean energy adoption

  • Growing cities and rising cooling demand require efficient, renewable-powered buildings and urban systems

  • Rural India can significantly reduce fossil fuel dependence through solar irrigation, micro-grids, and decentralized renewables

  • Smart planning, supportive policies and the right technologies are key to driving a balanced, affordable, sector-wise transition

Why Sectoral Action Matters

India’s energy transition has three major goals:

  • Achieve net zero

  • Increase renewable energy generation

  • Shift citizens and industries to cleaner energy

But as the economy grows, energy demand is rising — making it essential to reshape how individual sectors use energy.

India’s Sector-wise Emissions
Source: Ideas for India (I4I)
Hard-to-Abate Sectors

Heavy industries require very high temperatures and currently depend on fossil fuels, often with facilities located close to coal resources. This makes reducing emissions in these sectors particularly challenging. Decarbonising them is costly, and today’s low-carbon solutions are still limited in scale and maturity. Even so, green hydrogen is emerging as a promising option for the future.

More on Green Hydrogen
MSMEs: A High-Potential Opportunity

63.3 M

MSMEs in India

Micro, small, and medium enterprises across the nation.

30%

Manufacturing Sector

MSMEs in India operating in the manufacturing sector (e.g. pharmaceuticals, steel forging, and textiles sectors).

20–25%

Share of Industrial Energy Use

MSMEs account for roughly one-quarter of India’s industrial energy consumption, a major lever for decarbonisation.

 

India's 63.3 million MSMEs represent a transformative opportunity. Many operate in industrial clusters with shared infrastructure.

These enterprises don't require high-temperature fossil fuels. They can adopt clean energy solutions quickly and cost-effectively.

Rooftop Solar

On-site renewable generation reducing grid dependency.

Efficient Machinery

Energy-smart equipment lowering operational costs.

Green Logistics

Electric transport for supply chains and distribution.

Smart Buildings

Energy-efficient design and climate control systems.

Transport & Mobility

EV adoption is accelerating steadily. Multiple vehicle segments are transitioning simultaneously.

Global EV penetration was 16.48% in 2024, whereas India’s rate was 7.66%, underscoring the gap India must bridge to meet its 30% target by 2030.

 

 

Buildings, Cities & Cooling Demand
70%

India’s Future Infrastructure Yet to Be Built

Most of India’s 2047 urban infrastructure is still ahead — shaping long-term energy demand.

6

Megacities

Urban expansion will sharply increase energy use in homes, offices, and public buildings.

32%

Buildings Consume a Third of India’s Electricity

Homes and commercial buildings together account for nearly one-third of India's total electricity use.

Strategic Opportunities

Energy-Efficient Design

Buildings incorporating passive cooling, natural ventilation, and thermal insulation.

Renewable-Powered Spaces

Commercial buildings generating their own clean electricity on-site.

Climate-Resilient Planning

Smart, integrated urban systems designed for extreme weather events.

Agriculture

Decentralised renewable solutions can transform rural energy use. These technologies offer independence from unreliable grids.

Solar-Powered Irrigation

Reliable, cost-effective water pumping for farms.

Micro-Grids

Community-level renewable electricity distribution systems.

Biogas Plants

Converting agricultural waste into cooking fuel.

Solar Powered Dryers & Cold Storage

Preserving crops using renewable-powered systems.

Further Readings

 

 

More Modules

Module 1 
What is Energy Transition

Module 2 
Energy Transition: The Indian Perspective

Module 4 
Just Energy Transition

Module 5
Women and Energy Transition

Homepage