20 Dec

Renewable Energy

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Contents

• Introduction
• India’s Situation
• India’s NDC and Renewable Energy
• Why do we need to invest more in the Renewable Energy Sector?
• Steps taken by Government
• What further needs to be done?
• Problem of Storage in Renewable Energy
  • Why is storage needed in renewable energy sector?
  • Some initiatives to deal with these challenges

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Introduction

• Non-conventional energy sources refer to renewable energy sources which are replenishable at a rate faster than it is consumed i.e., they don’t get depleted when used. These sources are also much less hazardous to environment compared to conventional sources of energy.
• Popular Sources of Non-Conventional Energy Sources are:

i. Solar Energy
ii. Wind Energy
iii. Tidal Energy
iv. Geothermal Energy
v. Hydropower
vi. Biomass Energy
vii. Fuel Cell (Green Hydrogen)

India’s Situation:

• As of Feb 2023, India’s total power generation capacity was 412.21 GW.
  • Total Renewable Energy Capacity: 168.96 GW [122 GW without including large hydro]
    • Solar Energy: 64.38 GW
    • Wind Energy: 42.02 GW
    • Hydro (large + Small): 51.79 GW (Small Hydro – Around 5 GW)
    • Bio: 10.77 GW
  • Another 86.62 GW of green energy capacity is under implementation and 40.89 GW of capacity is under various stages of tendering.

Future Target: Government aims to achieve 500 GW of installed electricity capacity from non-fossil sources by 2030.

India’s NDC and Renewable Energy:

• While the target was to achieve 40 per cent of the installed electric capacity from non-fossil fuel sources by 2030 in the initial NDC submitted in 2015, the target has already been achieved.
• India is now striving to achieve the target of 50 per cent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030, in line with updated NDCs.

Why do we need to invest more in the Renewable Energy Sector?

• Energy Security and Reduced Import Dependency: As for fossil fuels, India is mostly dependent on crude oil imports.
• Economic growth:
  • Reduced cost of energy supply
  • Reduced CAD -> Saving Forex
  • Opportunity to emerge as a renewable energy hub for the world -> this can become an important source of employment and entrepreneurship.
  • Improved export opportunity in the non-conventional energy sector.
• Inclusive Development: Electricity in inaccessible areas
  • Solar, small hydro, wind energy etc. can easily provide electricity in the region where Grid connected electricity has not reached.
• Environmental sustainability:
  • Fighting Climate Change: Meeting NDCs submitted at COP26 of UNFCCC.
  • Reducing Air Pollution and Water Pollution
• Strengthening India’s Soft Power and Global Leadership: India could also handhold other developing nations to explore the path of sustainable development via making best utilization of non-conventional sources of energy.

Steps taken by Government:

• Ambitious Targets: GoI has set a target of achieving 50% of its electricity supply through non-fossil sources by 2030.
• Attracting Investment: FDI upto 100% under automatic route for renewable energy projects including offshore wind energy projects has been allowed.
• Promoting Ease of Doing Business:
  • Waiving of Inter-State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025.
  • Laying of new infrastructure: New transmission lines and subs station capacity for evacuation of renewable power etc. under Green Energy Corridor scheme for evacuation of renewable energy
• Sectoral Initiatives:
  • National Solar Mission
    • Setting up of ultra-mega renewable energy parks to provide land and transmission to renewable energy developers on a plug and play basis.
    • Pradhan Mantri Kisan Urja Surakha Evam Utthaan Mahabhiyan (PM-KUSUM): It is aimed a de-dieselization of the farm sector along with providing energy security and increased income for farmers.
  • National Hydrogen Mission: It aims to make India a green hydrogen hub, aiding to fulfill its target of production of five million tonnes of green hydrogen by 2030 along with allied development of renewable energy capacity.
    • In Aug 2022, India’s first indigenously developed Hydrogen Fuel Cell Bus developed by KPIT-CSIR was launched.
  • Steps to promote wind Energy:
    • National Offshore Wind Energy Policy notified in 2015
    • National Wind Solar Hybrid Policy was adopted in 2018
  • Steps to promote bioenergy:
    • National Policy on Biofuels
    • Scheme to support promotion of Biomass based cogeneration in sugar mills and other industries.
    • Program on Energy from Urban, Industrial and Agricultural Wastes/Residues
    • Biogas Power (Off-Grid) Generation and Thermal Application Program (BPGTP)
• International Collaboration:
  • International Solar Alliance
  • Global Biofuel Alliance announced during 2023 G20 Summit in India.

Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022 notified (June2022) – It is aimed at ensuring access to affordable, reliable, sustainable and green energy for all.

• Electricity (Promoting Renewable Energy Through Green Energy Open Access) Amendment
  Rules, 2023 (Jan 2023)

Problems faced by Renewable Energy Sector

i. Mobilization of Finance and investments: India is a developing country with limited resources and renewable energy sector is a capital-intensive sector.

ii. Land Acquisition: Solar and wind Power projects require large land areas, which has in recent years emerged amongst the biggest challenges faced by the sector.

• For e.g., windmills and Solar plants are impacting the habitats of critically endangered the Great Indian Bustard.

iii. Intermittent Nature of Renewable, Lack of energy storage, and wastage (15-20%)

• This makes grid integration difficult.
• The absence of storage facilities leads to wastage to the tune of 15-20% of electricity generated.

iv. Poor Manufacturing Ecosystem in the country leads to import dependency for wind mills and solar power panels.

v. Lack of Skilled Manpower: India still has not been able to attract youth towards this sector. Moreover, the opportunity to train in the sector is also negligible

vi. The financial conditions of our distribution companies (discoms) is another hindrance.

• The additional solar and wind capacity will come from private sector and developers would be discouraged if they are not assured of market and timely payments.

vii. International Trade Rules

• WTO trade rules have sometimes hindered our local manufacturing.

What further needs to be done?

For increasing Finance

1. More government investment
2. Creating mandates for provident funds to invest in infrastructure and environmentally sustainable projects.
3. Increasing the priority sector lending limit for bank loans under solar energy from a meagre Rs 15 crore.
4. Mobilizing retail savings by way of tax exemption on the lines of Section 80CCF.
5. Promote Green Bonds.

Standardizing the definition of green to be able to target government efforts in the direction.

Promoting more R&D on Green sector

Promoting local manufacturing

Dealing with intermittency and wastage (due to variability and lack of storage facilities)

• Focus more research towards storage technology -> use tax incentives and VGF.
• Promoting use of smart grid, net metering and storage devices.
• Redesign power markets to reflect the new feed for flexible supply and demand
• Options available for storage: Hydrogen based storage, lithium ion batteries, and pump storage plants.
• Hydrogen based storage is used for long term
• Lithium-ion batteries are suitable for day-to-day storage

Dealing with Land Acquisition Issues:

1. Minimising total land-use requirements for renewable energy by promoting offshore wind, rooftop solar and solar on water bodies

2. Identification and assessment of land for renewable generation by limiting undue regional concentration and developing environmental and social standards for rating potential sites.
3. Attention on Indian agri-voltaics sector — securing benefits to farmers and incentivising agri voltaics uptake where crops, soils and conditions are suitable and yields can be maintained or improved.

Ensure Greater Synergy among all the concerned stakeholders through a participatory approach and awareness generation, can further help to fasten the pace of shift towards renewable sources of energy.

International Cooperation:

• Renewable Energy Technology should be declared as a global public good, including removing of IPR barriers to technology transfer.
• Improve global access to supply chains for renewable energy technologies, components and raw material.

Conclusion1: Time is not on our side and our climate is changing before our eyes. We need a complete transformation of the global energy system.

Conclusion2: By addressing these challenges and implementing these measures, India can further accelerate its transition to renewable energy, promoting sustainable economic development while reducing its environmental footprint.

Problem of Storage in Renewable Energy

Introduction:

• India is emerging as a renewable energy powerhouse with a target of 450 GW of installed RE capacity by 2030. However, the country faces a major challenge in the form of lack of storage capacity.

Why is storage needed in renewable energy sector?

• Handling Intermittency and variability problem of renewable due to sudden cloud cover and decreased wind velocity.
• Providing energy in non-solar/wind hours

India’s doesn’t feel the pinch right now because we have more than 200 GW of coal based capacity which is managing the show by backing renewables in case of variability. So, decarbonization will be difficult without finding an alternative.

Various Storage options and their benefits and Limitations

i. Hydrogen based storage:

• It is found feasible for long-term storage (cross seasons)

ii. Lithium-ion batteries: They are the ideal source for day-today storage.

• Concerns: Though the cost of batteries have declined by 80% over the last decade, it is still quite expensive as the levelized cost of battery is about Rs 8 to Rs 10 per unit.

iii. Pump Storage Plants:

• India has a total capacity of about 4.7 GW (out of a worldwide capacity of 149 GW). The CEA estimates that India’s storage potential is of 100 GW.
• Concerns:
  • High investment cost
  • Long Gestation Periods
  • Non-remunerative pricing models
  • Lack of adequate sites having the required topography
  • India’s expertise in pump storage plants is somewhat a suspect with the Tehri pump storage project yet to be commissioned though construction began in 2011 and was to be complemented in 4.5 hours.
  • There may be environmental concerns associated with this kind of storage.

In general, we can say that there are two main reasons for lack of storage capacities:

• Cost of storage technologies is still relatively high.
• Regulatory Framework for storage is not yet fully developed.

Some initiatives to deal with these challenges:

i. Budget 2023:

• Pumped Storage Projects have received a push with a detailed framework to be formulated.
• 4 GWh Battery Energy Storage Systems supported through Viability Gap Funding (VGF).

ii. National Storage Mission launched in 2020 and wants to develop 100 GW of storage capacity by 2030.

iii. The Green Energy Corridor: These are corridors which will be used to transmit electricity from renewable energy projects to load centres. These will also include storage facilities.

iv. The National Battery Manufacturing Policy, launched in 2020, aims to promote the manufacturing of batteries in India. This will help to reduce the cost of storage technologies.

These are steps in the right direction, however, more efforts needs to be put to expand the capacities
in parallel with the expansion of the renewable energy.

i. More R&D in battery storage to reduce the cost: Government should increase the financial incentive and subsidies to development and adopt more advanced energy storage technologies.

ii. Grid Modernization: To accommodate energy storage and intermittent renewable energy sources effectively. Implement smart grid technologies to enhance grid flexibility.

iii. Finalize a regulatory framework which would help investors to develop and deploy storage projects.

iv. Public Private Partnerships – It can be used to develop and deploy storage projects.

v. Demand Side measures to reduce the need of storage e.g. smart metering, smart grid, energy
efficiency etc.

vi. Skill Development (Human Resource Creation): To develop workforce capable of designing, installing and maintaining energy storage systems.

vii. International Collaboration bilaterally and multilaterally to leverage best practices and sharing knowledge on energy storage solutions.

Conclusion: These steps have the potential to increase the storage capacity for renewable energy sector
and to help to make renewable energy a more reliable and affordable source of electricity.

Example Question:

• Discuss the significance of renewable energy in India’s sustainable economic development. What are the factors hindering the growth of renewable energy sector in the country? Suggest some measures to deal with these problems. [15 marks, 250 words]
• Evaluate the economic and employment opportunities presented by the renewable energy sector in India [10 marks, 150 words]