Sansad TV: Energy Security & Energy Transition | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

• India's G20 presidency kicked off with the India Energy Week in Bengaluru.
• India has one of the fastest growing rates of Renewable Energy capacity in the world.
• India pledged in COP-21 to generate 40% of its power from non-fossil fuel sources by 2030.
• India set a target of 450 GW of Renewable Energy capacity by 2030.
• India achieved universal access to electricity by connecting every village, hamlet, and household.
• India reached 200 GW of demand even during the COVID-19 pandemic.
• India plans to become a leader in Green Hydrogen and Green Ammonia.

Coal Contradiction

• The target for coal production was set to 1.5 billion tonnes to be achieved by 2024.
• Privatization of coal mining and recent auctions gave a meaningful thrust to this.
• The target for coal production conveys contradictory signals to the renewable energy target.
• Even by 2030, targeted coal production of 1.5 billion tonnes means thermal generation capacity could double over the current 223 GW.
• If this occurs, India will not be able to achieve its emissions intensity Paris commitment.
• Announcing a doubling of coal production in five years may harm India's reputation as a global green champion.

Policy Challenges:

• Fluctuating duty structures and policy flip-flops on open access and net metering.
• Difficulties in land acquisition and transmission blockages, even in solar parks.
• Renegotiation of Power Purchase Agreements (PPAs) and curtailment of solar power.
• Delays in payments from some states and regulatory agencies.

Constraints in Solar Cell Manufacturing:

• Current capacity for solar cell manufacture is 3 GW, with workable capacity around 2 GW.
• Domestically manufactured cells are more expensive and less efficient than imported ones.
• Limited upgrades in a rapidly evolving technology landscape.
• 90% of cells and 80% of modules are imported, mostly from China or Chinese companies.
• Wafer imports are at 100% as India doesn't manufacture ingots/wafers.
• More than half the cost of every GW goes to China.

Storage Constraints:

• Hydro pump storage is limited, and costs may be an issue.
• Current projects do not meet peak power demand or baseload requirements.
• Battery costs are predicted to decrease by 50% by 2030, making it wise to wait for large-scale storage.

Domestic Manufacturing:

• Urgent need to plan for at least 5 GW of ingot/wafer manufacturing capacity.
• Electricity supply required at around Rs 3 per unit, and dedicated power plants.
• Risk of technology obsolescence must be factored in.
• Policy and financial support should aim to create a globally competitive industry.
• Need to develop batteries suitable for extreme Indian weather conditions but benchmarked globally.
• Mission approach required to get the best people and institutions together, properly funded and tasked to develop a battery in the next three years.
• Simultaneously launch a hydrogen mission for heavy vehicle mobility through fuel cells, which could also become a solution for RE storage.

What needs to be done now?

India must identify strategic opportunities for economic recovery that can also facilitate a clean energy transition in the short, medium, and long terms. In the transport sector, potential opportunities include enhancing non-motorized transport infrastructure and making public transport safe, reducing vehicle usage through remote work policies, supporting national strategies for adopting electric vehicles in freight and passenger segments, and developing India as an automotive export hub.

• In the power sector, possibilities include improving electricity distribution business and operations, enabling renewable and distributed energy resources, promoting energy resilience, and encouraging local manufacturing of renewable energy and energy storage technologies.

Suggested pathways

• Construct thermal power plants as per the Central Electricity Authority's (CEA) guidelines, and promptly retire inefficient plants, with plans for mining site restoration.
• Increase the adoption of renewable energy (RE) sources after 2030 by incorporating energy storage. Target annual installations of 10 GW solar and 5 GW wind.
• Urgently develop 5-10 GW ingot/wafer manufacturing capacity and broaden import sources, even at a higher cost.
• Design a battery tailored to Indian conditions within three years, with complete battery manufacturing within India within five years.
• Reassess solar energy generation methods, prioritize decentralized and solar-powered agriculture.
• Strategize a hydrogen economy with pilot projects and specialized highways for long and heavy cargo transport.
• Establish an efficient energy demand management system with a stronger focus on energy conservation and efficiency.
• Develop world-class, competitive manufacturing systems for photovoltaics (PVs) and battery storage in India.
• Formulate a clean energy technology strategy; technology holds the key to a successful energy transition.