India’s Green Energy Transition

The agriculture sector in India holds significant untapped potential to drive the country’s green energy revolution. With more than half of India’s population dependent on farming and rural livelihoods, integrating clean energy into agriculture can simultaneously address challenges of energy access, food security, employment generation, and climate change.

India’s Agriculture and Energy Transition

The agriculture sector contributes nearly 18 per cent to India’s Gross Domestic Product (GDP) and employs over 42 per cent of the workforce. According to Energy Statistics India 2025, agriculture accounts for approximately 17 per cent of total electricity consumption, primarily for irrigation purposes. In several states, agricultural electricity use exceeds 20 per cent of total power consumption.

Despite this high energy demand, the sector remains both energy-intensive and energy-deficient. It continues to rely heavily on diesel-powered irrigation pumps, while inadequate cold storage and processing infrastructure lead to high post-harvest losses. Additionally, many states provide free or heavily subsidized electricity to farmers, resulting in inefficient usage, groundwater depletion, and financial stress on power utilities.

Employment Potential and Green Jobs in Agriculture

According to the International Labour Organization (ILO), India’s renewable energy transition could generate 3.7 million green jobs, many of which are linked to agricultural systems. For example, a single solar-powered cold storage unit functions as a local enterprise requiring technicians, operators, logistics workers, and community managers. Thus, clean energy adoption in agriculture can support inclusive rural employment.

Key Issues in India’s Agriculture Sector

Hidden Cost of Food Loss

India loses nearly 30–40 per cent of fruits and vegetables after harvest due to inefficiencies in transportation, storage, and processing. These systems depend heavily on reliable power. Cold storage units and food processing facilities become ineffective when electricity supply is erratic or when operations depend on costly diesel generators.

Policy Fragmentation

Agriculture and energy policies in India are often designed in isolation, limiting cross-sectoral innovation. While schemes such as PM-KUSUM, the National Solar Mission, and the PM Surya Ghar Muft Bijli Yojana have expanded solar access in rural areas, their impact remains limited due to fragmented policy design and weak coordination.

Awareness, Training, and Financing Gaps

Many farmers are either unaware of decentralized renewable energy (DRE) solutions or lack the skills to operate and maintain them. Small and marginal farmers also face limited access to affordable credit, making it difficult to adopt renewable technologies. High upfront costs, maintenance challenges in remote areas, and the risk of water overuse through solar irrigation further constrain adoption.

Utilising Clean Energy in Agriculture

Decentralised Renewable Energy (DRE) Solutions

DRE solutions such as solar mini-grids, rooftop solar systems, and hybrid energy units reduce dependence on unreliable grid power and diesel fuel. These systems lower operating costs, promote community ownership of energy assets, and localize power generation. By enabling reliable energy access, DRE solutions strengthen rural food systems, resilience, and sustainability, while also generating employment across the agricultural value chain.

Energy Transition and Digital Innovation

India’s rural transformation is increasingly shaped by digital platforms such as ITC MAARS, which provide AI-driven crop advisory services and market intelligence. However, digital tools alone are insufficient without supporting energy infrastructure. When renewable energy powers cold storage units, dryers, and processing facilities, farmers can convert digital insights into tangible economic outcomes. Together, smart energy systems and digital advisory platforms form a powerful engine for rural resilience.

Local Innovation and Context-Specific Solutions

Across India, farmers and rural communities are developing innovative, low-cost energy solutions suited to local conditions. These include solar dryers made from locally available materials, converted refrigerated trucks used as mobile cold storages, and community-managed solar-powered processing units. Such innovations demonstrate the importance of grassroots-led energy transitions.

Bridging Policy Silos Between Agriculture and Energy

Agriculture and energy are managed by separate ministries and financing mechanisms, leading to missed opportunities. Linking renewable energy initiatives with agricultural value chains can reduce post-harvest losses, strengthen rural infrastructure, and promote climate-smart agriculture. Effective inter-ministerial coordination is essential to achieve these outcomes.

Case Study: Odisha’s Solar Cold Storage Initiative

The Markoma Women Farmer Producer Company (FPO) in Odisha established a 5-metric-tonne solar-powered cold storage unit developed by Ecozen, with support from the Harsha Trust. Since its pilot in 2018, the initiative has reduced post-harvest losses, stabilized prices through organized market linkages, and increased awareness of solar energy in surrounding communities. This case demonstrates that reducing food loss requires not just infrastructure, but smarter and cleaner energy systems.

Government Policies and Institutional Framework

PM-KUSUM Scheme (Ministry of New and Renewable Energy)

The PM-KUSUM scheme aims to reduce farmers’ dependence on diesel and grid electricity, lower carbon emissions, and provide additional income through surplus power generation.

• Component A: Installation of 10,000 MW of decentralized grid-connected renewable power plants on barren or fallow land.

• Component B: Installation of 2 million standalone solar agricultural pumps.

• Component C: Solarization of 1.5 million existing grid-connected agricultural pumps.

Voluntary Carbon Market Framework

The Ministry of Agriculture’s Voluntary Carbon Market Framework promotes climate-smart agriculture by enabling farmers to register greenhouse gas mitigation projects, earn carbon credit certificates, and monetize eco-friendly practices under the Carbon Credit Trading Scheme. This framework is especially beneficial for small and marginal farmers.

Energy Data Management in Agriculture (NITI Aayog)

NITI Aayog has emphasized the need for accurate energy consumption data in agriculture to design effective clean energy interventions. It recommends inter-ministerial coordination, data-driven policymaking, and systematic monitoring of DRE deployment in rural areas.

Other Policy Initiatives

Additional initiatives include the Clean Plant Programme, which promotes climate-resilient horticulture through disease-free planting material, along with incentives for renewable energy adoption in rural infrastructure and agri-processing under various centrally sponsored schemes.

Way Forward: Towards a Resilient and Net-Zero Future

The NITI Aayog ‘Energy and Agriculture Nexus Report 2025’ highlights several transformative opportunities. Bioenergy derived from crop residues could generate up to 20 GW of power, helping reduce stubble burning. Agro-voltaic systems, which combine farming with solar panels, can enhance land productivity by nearly 60 per cent, as demonstrated in pilots in Rajasthan and Tamil Nadu. Emerging technologies such as green hydrogen from biomass and waste-to-energy plants represent the next frontier of agri-linked clean energy.

As India moves toward its 2070 net-zero target, integrating renewable energy with food systems must become a national priority. Key actions include expanding solar use beyond irrigation to post-harvest systems, providing targeted credit to farmer collectives, promoting public–private partnerships, and investing in green skills training for rural youth.