Is India Renewable Energised?

By Sanjay Banerjee: The author is passionate about how businesses can benefit from technology. He is a tech enthusiast and a senior business leader at EFY.

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“Earth provides enough to satisfy every man’s needs, but not every man’s greed”—Mahatma Gandhi

A recent report published by Niti Aayog highlights that India’s current installed electricity generation capacity of 275GW is significantly higher than the peak demand of 140GW. The capacity level of coal, which dominates as the primary energy source in India, is higher than its peak demand. Then, why is the country facing power shortage? Reasons are plenty, including:
1. High transmission and distribution losses at the distribution company (discom) level
2. Sub-standard health of infrastructure units supporting power generation facilities
3. Shortage of coal supply across all generation points due to connectivity issues
4. Unregulated price of imported coal

Owing to these and other pertinent issues, discoms, which purchase energy from these plaguing power generation units, face the problem of higher input costs, which ultimately affects the consumer! So when you face a power outage in your home today, don’t think that energy production is low – maybe the discom that supplies power to your home has refrained from buying adequate power from generation units in order to cut facility cost.

That’s the reason why our honourable Prime Minister Shri Narendra Modi talks about the seven horses of energy. He emphasises on evolution beyond the plaguing areas to newer sources of energy generation like solar, wind and biomass (refer Fig. 1 for details). Today, India has more than 300 million people who don’t have electricity in their homes, and are still waiting for the first glow of light in their homes. In order to provide electricity to their houses, the country just can’t rely on traditional methods of power generation, and would need to look at expanding base towards renewable energy (RE).

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In my recent trip to the Hindi heartland of India, I was confronted with situations which I had never seen while growing up in a metropolis. Power cuts lasting more than ten hours were just like a norm. As a solution, people resort to costly backup solutions like diesel generators, which pose great risks to both human health and environment. And to top it all, estimates suggest that by 2021-22 India’s electricity demand will be more than double the level in 2011-12. So how to solve this quagmire?

Fig. 1 (Source : Ministry to New and Renewable Energy)

The answer lies in exploring renewable energy resources, which are vast and largely unexplored. Forecasts show that India’s solar energy potential is greater than 750GW, while installable wind energy potential is 302GW (actual figure could be higher than 1000GW). The India Energy Security Scenarios 2047 report launched in 2015 shows the possibility of achieving 410GW of wind energy and 479GW of solar PV energy by 2047. The potential of biomass and small hydro projects is also significant. Thus, renewable energy has the potential to anchor the development of India’s electricity sector and reach the hinterlands not even thought of.

Now the question before the industry is “how do we reach economies of scale both by and through RE?” The government can provide the broad policy parameters and frameworks, but it’s the industry which needs to act and support these avenues towards a conclusive growth story. This will surely have a positive impact on India’s macro-economic growth with the lowering of revenue outflows for expensive fossil fuels, giving energy to the country’s Mission 2030 towards sustainable electric vehicle (EV) culture and, above all, creating an environment where every home can be lit up. Reduction in pollution and polluting agents would ensure a better, healthy life. On the social front, local employment possibilities would emerge and thereby reduce over-dependence on metropolis to create new jobs. We shall be seeing a lot of involvement from private and public enterprises, which will create newer, economically viable and growth-oriented Public-Private Partnership (PPP) Models.

To reap the benefits of RE, the government needs to set up infrastructure facilities, which, over a period, can replace or modify existing fossil-fuel-powered plants. Under the 12th five-year plan, estimates had suggested a trillion-dollar investment in energy grid requirements. With RE being a catalyst, the figure may go up even further. Therefore, financing RE would be a challenge. An experts group has been set up by the Niti Aayog to assess, utilise and enhance financing to achieve the first milestone of 175GW RE by 2022.

Renewable Energy Factfile

Over the last decade, renewable energy sector in India has seen an upsurge in the grid-connected power generation capacity. The essence of this change has been driven by the government’s focus on sustainable growth in order to make the country energy-efficient within a specified time period. Solar enjoys the first-mover advantage with advanced technologies, innovations and skill training initiatives driving growth in this sector. Enlarging the scope of the National Solar Mission symbolises both, and indeed encapsulates the vision and ambition for the future. This transformational change is, perhaps, the highlight of the last five years of activities under the Mission. And the government is leaving no stone unturned with innovative solar solutions and parks, RE-investor global forums, major grid-connected rooftop solar programmes, earmarking of Rs 380 billion in Green Energy Corridor Projects (refer the map in Fig. 2). The first Green Energy Corridor Project is already underway to connect Raigarh in Chhattisgarh to Pugalur in Tamilnadu. It has been taken up by Power Grid Corporation (PGCIL) and is being commissioned by ABB Group in partnership with Bharat Heavy Electricals Ltd (BHEL) with layout cost in the range of Rs 43.5 billion. ABB’s statement on this project reads: “This link is a key element of integrating RE with the main grid. It will integrate thermal and wind energy for transmission of power to high-consumption centres located thousands of kilometres away, supporting electricity demands in the south and transmitting clean energy to the north, when there is excess wind power.”

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