Renewable Energy and CO2 Reduction in Indian Power Sector: A MARKAL Approach

India’s electrical energy scenario is characterized by considerable gap between demand and supply and increasing emissions from the power sector, which predominantly uses coal as the energy source. In the business as usual scenario, this gap between demand and supply may grow up to 70% in the year 2045.Introducing energy efficiency measures in all sectors of economy can reduce this gap to 50%.The remaining gap can be filled by indigenous use of all energy scenario in an optimal mix of all energy sources. Considering the emissions from fossil fuels renewable energy technologies are the best options. In this paper MARKAL model has been used to generate an optimal electrical energy supply system with an aggressive approach towards renewable energy sources. The result shows that 22% electricity market will be captured by renewables in the year 2045.This validate the Indian Government plan to generate 25% electricity by renewables in the year 2050. The Aggressive renewable energy scenario shows that about 72% CO2 emissions can be reduced in the year 2045 with respect to business-as-usual scenario.