Renewable Energy and India

WHY IN NEWS?

India has pledged that by 2030, 40% of installed power generation capacity shall be based on clean sources as part of the Nationally Determined Contributions (as per the Paris Accord on Climate Change), also dependence on renewable energy sources can reduce pollution, impact on climate change and reduce India's import-dependency on fossil fuels.

WHAT IS RENEWABLE ENERGY?

Renewable energy is energy that is collected from renewable resources, which are naturally replenished on a human timescale. As per the International Energy Agency (IEA), ‘Renewable energy is derived from natural processes that are replenished constantly. In its various forms, it derives directly from the sun, or from heat generated deep within the earth. Included in the definition is electricity and heat generated from solar, wind, ocean, hydropower, biomass, geothermal resources, and biofuels and hydrogen derived from renewable resources.’ Renewable energy displaces conventional fuels in four areas: electricity generation, heating, transportation, and off-grid energy services.

INDIA AND RENEWABLE ENERGY:

• India is one of the countries with the largest production of energy from renewable sources. Renewables currently account for 35% of India's total installed capacity of about 357 GW.
• India has attained 4th and 5th positions globally in wind and solar power installed capacities.

• As part of the Nationally Determined Contributions (as per the Paris Accord on Climate Change) India made a pledge that by 2030, 40% of installed power generation capacity shall be based on clean sources.
• India has set an ambitious target of installing 175 GW of renewable energy capacity by the year 2022, which includes:
  • 100 GW from solar
  • 60 GW from wind
  • 10 GW from bio-power; and
  • 5 GW from small hydro-power

NEED FOR RENEWABLES:

• To enhance energy security:
  • India’s fossil fuel requirements, which comprise nearly 90% of primary energy supply, are increasingly being met by imports. Hence, India incurs huge expenditure and uncertainty with regards to energy security.
  • Abundance of solar and wind energy can fulfill India clean energy demands, thereby diversifying its energy basket and reduce import bill.
• Promote energy accessibility & usage:
  • India suffers from chronic energy poverty. Indians use biomass such as dung, agricultural waste and firewood as their primary energy resource for cooking. These fuels cause indoor pollution and increase the burden of disease of the womenfolk. Clean renewable sources can help counter these issues while promoting energy accessibility and usage.
  • Also, because they can be setup as standalone off-grid units, they are ideal for areas such as remote locations of north east India, Ladakh, Kashmir and LWE affected areas of the country.
• Enhance inclusive growth:
  • Ensuring basic energy services to all is a major goal under the SDGs. Access to quality energy is critical for the holistic utilization of human resources.
  • Renewable energy is becoming cheaper by the day. Eg: lowest ever wind tariff of Rs.2.43 per unit was registered in Gujarat in 2017. Thus it can help promote the use of clean energy among the poorest sections of the society.
• For sustainable development:
  • India today faces both an environmental crisis and a developmental crisis. Renewables offer an ideal solution to address this twin challenge.
  • Certain renewable sources offers not only clean energy but also help in carbon sequestration. Eg: Plants like Jathropha used for bio-ethanol production acts as sinks for carbon.
  • Renewables are the only way for India to successfully meet its INDC commitments.
• To meet diversifying needs:
  • A world where most household, commercial, transport and industrial activity is performed by electricity is becoming a reality.
  • India is pushing for a complete shift to electric mobility. The Centre is pushing for a full transition of three-wheelers, and scooters and motorcycles with engine capacities of less than 150cc to electric by 2023 and 2025, respectively through initiatives like FAME-II and Make in India. Thus there will be a rise in demand for electric power.
• Abundance of sources:
  • India lacks sufficient petroleum reserves. Its coal reserves are poised to be depleted by the end of this century.
  • However, with 300 clear sunny days, over a dozen perennial rivers and a coastline of more than 7,500 KMs, India has abundant sources of renewable energy.
• Employment generation:
  • Renewable sources require skilled manpower for their operation. This is ideal for India’s potential demographic dividend, especially for the technically educated youth.

GOVERNMENT INITIATIVES:

• Jawaharlal Nehru National Solar Mission:
  • Part of the National Action Plan on Climate Change. 
  • The objective of the National Solar Mission is to establish India as a global leader in solar energy, by creating the policy conditions for its diffusion across the country as quickly as possible.
  • Initially it targeted 20 GW solar power capacity by 2022. Later it was expanded to achieve a target of 100 GW grid-connected solar power capacity in the country by 2022.
  • The target comprises of 40GW Rooftop and 60GW through large and medium scale grid connected solar power projects.
• Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM)
  • Farmer-oriented solar power scheme that promotes setting up grid-connected solar plants in rural areas and off-grid solar pumps.
  • Government will incentivise farmers to run solar farm water pumps and use barren land for generating power for extra income up to Rs 60,000 per acre every year.
  • It aims at boosting farmers’ income by allowing them to sell additional power to the grid through solar plants.
• Green energy corridor project:
  • Aims at synchronizing electricity produced from renewable sources, such as solar and wind, with conventional power stations in the grid.
  • The conventional grids face difficulty in absorbing renewable electricity because of its varying voltage and supply. The planned transmission system under Green Energy Corridor Project is made dynamic to handle the voltage variations leading to an integrated grid across the nation.
• Sustainable Rooftop Implementation For Solar Transfiguration Of India (SRISTI):
  • The scheme, part of the larger grid-connected Rooftop Solar (RTS) power programme, aims to bring discoms to the forefront in the implementation of rooftop solar projects.
• Surya Mitra Scheme:
  • Aimed at creating 50,000 trained solar photovoltaic technicians by March 2020
  • The course is a 600 hours (i.e. 3 months) skill development program designed to create skilled manpower in installation, commissioning, and Operation & Maintenance of solar power plants and equipment
• PM Ji-VAN yojana:
  • Pradhan Mantri Jaiv Indhan - Vatavaran Anukool fasal awashesh Nivaran Yojana.
  • For providing financial support to Integrated Bioethanol Projects using lignocellulosic biomass and other renewable feedstock.
  • The scheme focuses to incentivise 2G Ethanol sector and support this nascent industry by creating a suitable ecosystem for setting up commercial projects and increasing Research & Development in this area.
• GOBAR-Dhan yojana:
  • GOBAR (Galvanizing Organic Bio-Agro Resources) - DHAN scheme, by Ministry of Drinking Water & Sanitation
  • Aims to positively impact village cleanliness and generate wealth and energy from cattle and organic waste.
  • The scheme also aims at creating new rural livelihood opportunities and enhancing income for farmers and other rural people.
• National offshore wind energy policy:
  • India has an ambitious target of installing 175 GW of renewable power by 2022 and of that 60 GW is targeted to come from wind power.
  • Ministry of New and Renewable Energy (MNRE) has been authorised as nodal ministry for use of offshore areas within the EEZ of the country.
  • National Institute of Wind Energy (NIWE) has been authorised as the agency for development of offshore wind energy in the country.
  • With the introduction of the National Offshore Wind Energy Policy, the Centre is attempting to replicate the success of the onshore wind power development.
• National wind-solar hybrid energy policy:
  • Under the category of wind-solar hybrid power plants, Wind Turbine Generators (WTGs) and Solar PV systems will be configured to operate at the same point of grid connection.
  • The main objective of the Policy is to provide a framework for promotion of large grid connected wind - solar PV hybrid system for optimal and efficient utilization of transmission infrastructure and land.
• Other Initiatives:
  • Barefoot College, Rajasthan has been promoting and training rural women solar engineers (solar mamas) from Africa in fabrication, installation, use, repair and maintenance of solar lanterns and household solar lighting under Government of India supported programmes.
  • Promotion of waste-to-energy plants. Eg: Delhi Metro became the first ever project in the country to receive power generated from a waste-to-energy plant
  • Solar city, to motivate the local Governments for adopting renewable energy technologies and energy efficiency measures
  • PAT scheme and Renewable energy certification scheme

NEW HYDROELECTRIC POLICY:

• The government, under New Hydroelectricity Policy, has approved to grand “renewable energy status” for large hydel projects.  
• Earlier, only smaller projects of less than 25 MW in capacity were categorised as renewable energy. Large hydro projects were treated as a separate source of energy.
• With the inclusion of large hydro in renewable energy, the energy mix changes drastically. Renewable energy capacity would now be 120 GW or 34.4% of the overall energy mix.

Benefits:

• This reclassification will help India achieve its target of 175 GW by 2022
• There has been a huge imbalance in the thermal-hydro mix for the last few years because of a sharp growth in thermal and complete stagnation in hydro.
• Can positively impact the stock prices of State-run hydroelectric companies.
• Will help large hydel projects avail cheaper credit and increase demand from distribution companies for cleaner energy.
• State distribution companies will be obliged to purchase a certain percentage of hydropower—similar to renewable purchase obligations. This will create a market for hydropower, making the sector competitive.
• These projects will not only get the budgetary support for infrastructure, but will also be able to access “green finance”

ISSUES WITH RENEWABLES:

• Infrastructural deficiencies:
  • Large swaths of land are necessary for setting up renewable energy plants.
  • India relies on import of minerals such as silicon to manufacture solar cells.
  • Lack of capable transport facilities is a major hindrance to wind energy plants in India. Indian roads are not wide enough to carry large size windmill blades. This restricts the capacity of plants that can be set up in an area, especially rural areas.
  • Lack of necessary transmission infrastructure to provide sufficient grid connectivity.
  • Lack of efficient storage facilities such as batteries. Due to this, renewable sources such as wind and solar have limited viability in areas with fluctuating load demand.
• Institutional challenges:
  • Capital costs:
    • The upfront expense of building and installing solar and wind farms are very high. Hence it is unviable for state-run DISCOMs with fragile financial health to take up such projects.
    • Cut-throat competition among producers is forcing cost of renewables to decline to unsustainable levels. This, along with the NPA crisis, is creating shortage of capital for private investors.
  • Unpredictable government policies:
    • Rules, regulations and taxes are imposed without much discussions or warnings. This significantly affects the profitability of power plants. Eg: The introduction 5% GST on solar panels has forced several under construction projects to run into troubles of profitability.
    • Also, certain states have backed out of Power Purchase Agreements (PPAs), creating further uncertainty in the sector.
  • India’s domestic content requirement clause is facing legal challenge at WTO.
• Geographical constrains:
  • Most of the major renewable sources are location specific in nature. Eg: Wind of sufficient speed is available only in some areas.
  • Remoteness of generating source, especially off grid locations, makes periodic maintenance difficult
• Environmental concerns:
  • Solar plants increase the albedo, thereby affecting its microclimate of the region.
  • Used solar cells are e-wastes, the disposal of which poses challenges
  • Wind turbines are harmful for the avian population in the area.
  • Tidal plants are not conducive for the littoral ecosystems, especially its components such as crustaceans and mangroves.
• Human resource shortages:
  • Shortage of trained technicians for installation. periodic repair and maintenance in acute in India
  • Limited academic and research facilities in this field means India is still largely dependent on import of technology in the area of renewable energy.

WAY AHEAD:

• India’s future is heavily dependent on how well it can develop on renewable energy. It has definitely stepped into the world markets of renewable energy and is steadily becoming a leading destination for investors from developed countries. The government’s active participation in the promotion of renewable energy projects along with key incentives offered like tax concessions managed to attract investment in this sector.
• However, the government needs to sort out its internal issues which are hindering the nation to achieve its target to tap potential energy resources.
  • Import dependency in renewable energy sector, especially for Rare Earth Minerals (REMs), should be reduced. India has several potential sources of REMs, such as in the beach sands along Kerala coast. What is needed now is a focused mission to efficiently utilize them. 
  • Efficient storage facilities are vital for improving the reliability on renewable sources. Hence, research should be encouraged in the development indigenous storage facilities
  • The rooftop solar market in India has not grown as much mostly because rooftop projects are often treated the same as a utility-scale projects in terms of financing and due diligence. Hence, the residential rooftop market needs innovative ways of financing
  • The power purchase agreement structure needs to be strengthened further to make renewable energy projects more bankable.
• India is blessed to have a huge potential in renewable energy resources and the country should exploit this to the maximum extent so as to meet its on-going energy deficit issues and reduce its dependence on other countries to acquire fuels and other resources.
• Last but not the least, in order to remain energy positive and to make the most of renewable energy sources, we will have to focus equally on aggressive promotion of energy efficiency practices. This can include measures such as smart metering, efficiency rating for appliances, mandating green building codes etc.

Practice Question

Q. India has set ambitious targets in developing its renewable energy capacity. Discuss the challenges in attaining these targets. What measures have been taken by the government in this regard?