The global shift towards renewable energy is frequently described as moving away from dependence on resources to energy independence. But this is not a true geographical fact: renewable energy does not occur everywhere. The solar radiation, wind corridors, hydropower potential and critical mineral reserves are focused in certain areas.
Thus, the green transition is not about the end of resource dependency, it is about the reconfiguration of a new geography of resource dependency. The potential of renewable energy is different from fossil fuels, which is mostly concentrated in specific geological formations, while renewable energy is mostly dependent on climatic, physical and geographical conditions.
High solar insolation regions like Rajasthan, Gujarat and Sahara, have tremendous potential in solar power generation. The wind potential is high in the coastal areas and in the areas with favourable atmospheric circulation, and the hydropower potential is high in mountainous areas with perennial rivers.
Geothermal energy, on the other hand, is limited to regions of tectonic activity, like Iceland, Indonesia and Japan. But the growing reliance isn’t limited to energy production, it’s also on the minerals needed to produce renewable technologies. Strategically important battery storage, electric vehicles, solar panels and wind turbines are lithium, cobalt, nickel, copper and rare earth elements.
Australia is the leading producer of lithium, Chile is the 2nd largest producer, the Democratic Republic of Congo is a significant producer of cobalt, and Indonesia has increased its lithium production. Meanwhile, China has a dominant position in several aspects of clean energy manufacturing and mineral processing.
This focus is reflected in the IEA’s Energy Technology Perspectives 2026, which estimates that China currently has about 85 per cent of the world’s solar PV production capacity and 80 per cent of lithium-ion battery supply-chain production capacity. This geographical concentration is changing the location of industries.
Historically, industries have been concentrated around coalfields, petroleum reserves, ports and transportation systems. Availability of low-cost renewable power, critical minerals, transmission, and technological ecosystems are impacting industrial investment in growing ways. Companies in energy-intensive industries including steel, aluminium, fertilisers and chemicals are seeking out sites with renewable energy.
The production of green hydrogen is also likely to attract industrial clusters to areas with high levels of solar and wind power. This change offers significant opportunities for India. The potential for large-scale solar generation is good in Rajasthan and Gujarat, whereas Tamil Nadu and Gujarat have good wind energy potential. The connectivity of Gujarat’s coastline further enhances its potential in the field of green hydrogen, ammonia and export industries.
The National Green Hydrogen Mission, Production Linked Incentive schemes for solar manufacturing and battery storage, and the National Critical Mineral Mission are all a part of India’s efforts to convert geographical opportunities into industrial competitiveness. But the availability of resources does not necessarily mean industrial development.
Resource-rich areas may fail to reap the economic benefits due to transmission bottlenecks, insufficient storage, technological reliance, water shortages, and a shortage of skilled labour.
Moreover, the location of renewable energy generation does not necessarily coincide with the location of manufacturing. Industrial ecosystems are more likely to be found in areas that already have infrastructure, capital, skilled workforce and access to markets. This poses a high risk of exacerbating inequalities between the regions. Areas of high resource value can produce electricity and extract minerals, and high-value manufacturing and processing and technological innovation are clustered in existing industrial centres.
This imbalance is shown in African and Latin American mining areas where the extraction of minerals does not necessarily lead to significant value addition within the country. The shift in the energy mix could lead to job and revenue losses in coal-dependent states like Jharkhand, Chhattisgarh and Odisha, and fresh investment in renewable energy in renewable-rich states in India.
Environmental costs are also a concern. Solar parks are huge and are bidding for land, mining is putting pressure on ecosystems and water sources, and unplanned projects can displace local communities. Thus, the shift should not only be towards energy security, but also distributive justice.
The solution is to link the availability of resources to local value addition. The investments in India need to be made in the transmission networks, energy storage systems, domestic mineral processing, research and development, and decentralised renewable infrastructure. Just transition strategies that are tailored for the region are also critical, to help workers and diversify fossil fuel economies.
The transition to renewables is, after all, a reconfiguration of economic geography. The nations and regions that hold control over the critical minerals, manufacturing technologies and energy infrastructure will have a significant influence on the new green economy.
The true success will not just be in terms of the amount of renewable energy that is generated globally, but in how the economic benefits of this energy is shared out compared to the fossil-fuel era.
*Janvi Singhi is a Senior Research Fellow at India Forth, Sydney based geo-economic intelligence firm. She holds a Master’s degree in Political Science and is a Gold Medalist in International Relations. Her research focuses on geopolitics, geoeconomics, strategic affairs, of South Asia and Indo-Pacific.