The world is in the midst of yet another energy crisis, driven by unstable fossil fuel supplies and, as a result, soaring prices. Its effects are immediate and widespread: at fuel pumps, where ₹500 buys less; in factories forced to halt production due to gas shortages; and in households, where inflation continues to rise.
This crisis calls for a range of responses. Yet across countries, two themes stand out: electrification and greater energy self-reliance. In other words, the energy crisis demands an accelerated green transition—not only for climate reasons, as was once the case, but increasingly for national security.
The key message is clear: solutions to the energy crisis and the climate crisis must be integrated. Short-term, carbon-intensive fixes may offer temporary relief, but they risk imposing far greater costs in the long run.
“Tackling climate change is a shared global responsibility, and India plays a pivotal role...because its size means that its energy choices carry global consequences”
India is already well underway in its transition away from fossil fuels. More than 250 GW of renewable capacity has been installed, and the political target of 500 GW by 2030 is within reach. Due to its size, India is the world’s third-largest emitter of greenhouse gases, after China and the United States—and it may not be long before it surpasses the latter.
For India, the choice is compelling. Solar power can be generated around ₹2 per kWh—domestically, affordably, and cleanly. Few, if any, energy technologies can match this combination of low cost, energy independence, and minimal carbon dioxide emissions.
However, time is not on India’s side. The energy crisis coincides with the intensifying climate crisis, alongside India’s legitimate need for greater energy to support development and rising living standards. This creates a difficult balancing act between advancing the green transition and sustaining economic growth.
According to NITI Aayog report ‘Scenarios Towards Viksit Bharat and Net Zero’, India’s per capita electricity consumption is expected to rise almost four times—from 1.4 MWh today to more than 5 MWh annually by 2047, when the country aims to become a fully developed economy. By 2070, when India is projected to reach Net Zero emissions, this figure could increase further to 9.9 MWh per capita.
Meeting this demand will require an enormous expansion of renewable energy capacity: more than 4,000 GW by 2047 and around 6,500 GW by 2070. Scaling from roughly 250 GW today to 4,000 GW in just over two decades would place India on a development trajectory unparalleled in human history.
“Tackling climate change is a shared global responsibility, and India plays a pivotal role...because its size means that its energy choices carry global consequences”
In this challenging journey, India can rely on international partnerships. Denmark has established a Green Strategic Partnership with India—not merely in response to the current energy crisis, but as part of a broader effort to address global warming.
Tackling climate change is a shared global responsibility, and India plays a pivotal role. Not because it has historically driven the crisis—its per capita emissions have remained relatively low—but because its size means that its energy choices carry global consequences.
At the same time, climate change poses significant risks to India itself, potentially reducing GDP by up to 10 percent and pushing millions back into poverty. Today, India is the world’s third-largest emitter of greenhouse gases, after China and the United States. Projections suggest it could overtake the United States within a few years to become the second-largest emitter—despite its ambitious renewable energy plans.
Denmark has long partnered with India on the green transition, formalised in 2020 through the India–Danish Energy Partnership (INDEP). Drawing on decades of experience, Denmark has successfully integrated large shares of renewable energy into its grid. Around 25 years ago, Denmark undertook a rapid shift away from fossil fuels—a transition expected to be completed by 2030, when 100 percent of its electricity will come from renewable sources, primarily wind and solar.
By 2031, Denmark also expects to replace all natural gas with biogas. India has similar potential. The International Energy Agency estimates that India could sustainably produce up to 90 billion cubic metres of biogas annually—exceeding its current natural gas consumption. This would not only enhance energy security, but also generate income in regions in need of economic development.
Several lessons from Denmark and the Nordic countries may be relevant for India, with appropriate adaptation: creating genuine competition in the power sector helps lower electricity prices. This requires unbundling generation, transmission, and distribution. Developing a robust energy market in which both producers and consumers respond to price signals—for example, through smart metering in industry and households.
Committing to long-term, scenario-based planning and making bold decisions, such as retiring existing plants or investing in critical grid infrastructure, which can be cost-effective in the long run. Supporting, as India is already doing, emerging technologies—such as offshore wind, biogas, and green hydrogen—through targeted incentives, while remaining as technology-neutral as possible. Reducing overall energy consumption. Denmark has successfully decoupled economic growth from rising energy use.
“India, with its emphasis on self-reliance and strong indigenous knowledge systems, is uniquely positioned to lead by example, demonstrating how development, energy security, and environmental responsibility can be successfully aligned”
Denmark is now focusing on deeper system integration, aligning diverse energy sources with a responsive demand side. While challenging, the right planning and pricing mechanisms can enable variable renewable sources such as wind and solar to serve as the backbone of modern energy systems.
Cost remains a decisive factor in the green transition—especially for countries balancing ambitious climate goals with immediate energy affordability. The current energy crisis has, however, begun to shift this equation. Even so, accelerating progress will require more than technological solutions. It calls for a broader cultural shift in how energy is produced and consumed.
Scalable behavioural changes—at both individual and societal levels—can unlock transformative and lasting impact. In this regard, India, with its emphasis on self-reliance and strong indigenous knowledge systems, is uniquely positioned to lead by example, demonstrating how development, energy security, and environmental responsibility can be successfully aligned.
The author is Energy Counsellor at the Royal Danish Embassy in New Delhi. The views and opinions expressed in this article are those of the author and do not necessarily reflect the official position of the Embassy of Denmark in India.
