Note4Students
From UPSC perspective, the following things are important:
Mains level: Renewable Energy Transition;
Why in the News?
With Donald Trump’s win in the U.S. and ongoing conflicts in West Asia, India faces a significant challenge at COP29: it must reduce carbon emissions fairly, sustain economic growth, and attract climate funding for essential investments.
Primary Challenges Facing India’s Renewable Energy Transition
- Policy Instability: Frequent changes in policies create uncertainty for investors, hindering long-term planning and investment in renewable energy projects.
- Financial Constraints: India requires substantial investment—estimated at about $10 trillion by 2070—for its energy transition, yet access to affordable financing remains a significant barrier.
- Infrastructure Limitations: The existing energy infrastructure is often inadequate to support the rapid deployment of renewable technologies, particularly in rural areas where access to clean energy is limited.
- Dependence on Fossil Fuels: Coal remains a dominant source of energy, accounting for approximately 73% of total power generation. This reliance complicates the shift towards renewables.
- Geographical Disparities: There are uneven resources and infrastructure across regions, affecting the adoption and efficiency of renewable technologies.
- Environmental and Social Concerns: Rapid expansion of renewable energy can lead to land use conflicts, impacting agriculture and local ecosystems. Additionally, there are concerns about job losses in traditional energy sectors during the transition.
How India Can Secure Financing for Its Green Transition?
- International Collaboration: Engaging with global partners through initiatives like the International Solar Alliance can attract foreign investments and technology transfers.
- Innovative Financing Models: Implementing operational expenditure (opex) models rather than capital expenditure (capex) can lower upfront costs for consumers. For example, community solar projects can allow shared ownership and reduce individual financial burdens.
- Public-Private Partnerships (PPPs): Encouraging collaborations between government entities and private investors can mobilize resources for large-scale renewable projects while sharing risks.
- Targeted Subsidies: Redirecting subsidies from fossil fuels to clean energy technologies can create a more favorable financial environment for renewable investments. This includes enhancing support for green technologies through tax incentives and grants.
Strategies That Can Be Implemented (Way Forward)
- Decentralized Energy Systems: Promoting distributed renewable energy sources (like rooftop solar) can empower local communities and reduce dependence on centralized power systems. Innovative business models such as community solar can enhance accessibility.
- Digital Integration: Leveraging digital technologies to manage energy distribution more efficiently can optimize resource use and enhance system resilience. Investments in smart meters and AI-driven energy management systems are essential.
- Circular Economy Initiatives: Developing a circular economy framework for managing waste from renewable technologies can improve resource efficiency and reduce environmental impacts. This includes recycling materials from solar panels and batteries.
- Focus on Supply Chains: Positioning India within global clean energy supply chains rather than adopting protectionist policies can enhance competitiveness and attract investments. Collaborating with other countries on technology development is crucial.
- Public Awareness Campaigns: Educating consumers about the benefits of renewable technologies and encouraging adoption through financial incentives can drive demand for green solutions
Mains PYQ:
Q Discuss global warming and mention its effects on the global climate. Explain the control measures to bring down the level of greenhouse gases which cause global warming, in the light of the Kyoto Protocol, 1997. (UPSC IAS/2022)
Note4Students
From UPSC perspective, the following things are important:
Mains level: Renewable energy;
Why in the News?
Tamil Nadu, a leader in wind energy with turbines over 30 years old, introduced a new policy for upgrading old windmills in August 2024. However, wind energy producers opposed it, took the issue to the Madras High Court, and obtained a stay.
What is Tamil Nadu’s wind power capacity?
- Installed Capacity: As of November 2023, Tamil Nadu has an installed wind energy capacity of approximately 10,377.97 MW, making it the second-largest wind energy producer in India after Gujarat. This represents about 23% of India’s total installed wind capacity.
- Age of Turbines: Many turbines in Tamil Nadu are over 30 years old, which raises concerns about efficiency and technological advancements5.
- Potential for Repowering: The state has a repowering potential of over 7,387 MW, which could significantly enhance its energy generation capabilities if older turbines are replaced or refurbished.
What about national wind energy capacity?
- Total Potential: The National Institute of Wind Energy (NIWE) estimates that India has a wind power potential of 1,163.86 GW at a height of 150 meters, ranking fourth globally for installed capacity.
- Current Utilization: At 120 meters (the standard height for modern turbines), India’s potential is around 695.51 GW, with only about 6.5% currently utilized nationally and nearly 15% in Tamil Nadu.
- Leading States: The states contributing most to India’s wind power include Gujarat, Tamil Nadu, Karnataka, Maharashtra, Rajasthan, and Andhra Pradesh, which collectively account for approximately 93.37% of the country’s installed capacity.
What does the repowering and refurbishing of wind turbines mean?
- Repowering involves replacing old turbines with new ones to enhance efficiency and output. Refurbishing includes upgrading components like gearboxes and blades to improve performance without complete replacement.
- Regulatory Framework: The Tamil Nadu government introduced a new policy aimed at facilitating these processes. However, generators argue that the policy lacks provisions that effectively promote wind energy generation and financial viability.
Why are wind energy generators opposing the new policy of the TN government?
- Concerns from Generators: Wind energy generators have opposed the new “Tamil Nadu Repowering, Refurbishment and Life Extension Policy for Wind Power Projects – 2024”, claiming it does not adequately support the promotion of wind energy generation. They have approached the Madras High Court and received a stay on the policy implementation.
- Financial Viability Issues: The opposition stems from concerns that repowered turbines will be treated as new installations without banking facilities for generated energy, impacting financial returns on investments.
- Generators emphasize that without a commercially beneficial framework, investments in repowering will decline.
Way forward:
- Revise the Policy to Ensure Financial Viability: The Tamil Nadu government should amend the policy to provide incentives like banking facilities for energy generated from repowered turbines, making the projects financially viable for investors.
- Promote Technological Advancements and Infrastructure Upgrades: The policy should focus on facilitating the replacement of old turbines with modern, high-capacity ones and improving wind energy transmission infrastructure to harness the full potential of Tamil Nadu’s wind resources.
Mains PYQ:
Q Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above bjective? Explain. (UPSC IAS/2022)
Note4Students
From UPSC perspective, the following things are important:
Prelims level: International Energy Efficiency Hub
Why in the News?
The Union Cabinet has approved the signing of a ‘Letter of Intent’ that will enable India to join the International Energy Efficiency Hub (Hub).
About the International Energy Efficiency Hub
- The Hub was established in 2020 as the successor to the International Partnership for Energy Efficiency Cooperation (IPEEC), of which India was already a member.
- It is a global platform that promotes collaboration and energy efficiency among governments, international organizations, and the private sector.
- Members: As of July 2024, 16 countries (Argentina, Australia, Brazil, Canada, China, Denmark, the European Commission, France, Germany, Japan, Korea, Luxembourg, Russia, Saudi Arabia, the US, and the UK.)
- The Bureau of Energy Efficiency (BEE), a statutory agency, has been designated as the implementing agency for India’s participation in the Hub.
Significance for India
- India will benefit from opportunities to collaborate with other member states as a member.
- India can share its expertise and learn from international best practices in energy efficiency.
- The country will also contribute to global efforts to address climate change by promoting energy-efficient technologies and practices.
- India’s participation will:
- Accelerate the transition to a low-carbon economy.
- Improve energy security by adopting more efficient energy practices.
Back2Basics: Bureau of Energy Efficiency (BEE)
|
Details |
| Establishment |
Established in March 2002 under the Energy Conservation Act, 2001 |
| Objective |
To promote energy efficiency and conservation, reduce energy intensity, and enhance energy security |
| Governing Body |
Functions under the Ministry of Power, Government of India |
| Key Functions |
• Develops energy efficiency policies and strategies
• Implements energy conservation programs
• Coordinates with various sectors like industry, transport, and municipalities on energy efficiency
• Promotes R&D in energy conservation technologies |
| Key Initiatives |
• Standards and Labeling Program (Star rating system for appliances)
• Perform, Achieve, and Trade (PAT) Scheme (for energy-intensive industries)
• Energy Conservation Building Code (ECBC) (for commercial buildings)
• National Mission for Enhanced Energy Efficiency (NMEEE)
• Energy Efficiency Financing Platform (EEFP) |
| Important Programs |
• National Energy Conservation Awards
• Demand Side Management (DSM)
• Street Lighting National Program (SLNP) (LED streetlight replacement) |
| Goals |
• Reduce energy intensity in India
• Improve energy efficiency in key sectors like agriculture, industry, buildings, and appliances
• Contribute to sustainable development and reduce greenhouse gas emissions |
| International Cooperation |
Collaborates with UNDP, World Bank, and ADB on energy efficiency projects globally |
| Legislative Framework |
Operates under the Energy Conservation Act, 2001 |
| Achievements |
• Significant reduction in carbon emissions
• Supports India’s climate commitments under the Paris Agreement |
|
PYQ:
[2016] On which of the following, can you find the Bureau of Energy Efficiency Star Label?
1. Ceiling fans
2. Electric geysers
3. Tubular fluorescent lamps
Select the correct answer using the codes given below:
(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3 |
Note4Students
From UPSC perspective, the following things are important:
Prelims level: European Hydrogen Week
Why in the News?
India will be the exclusive partner for European Hydrogen Week in November 2024.
About European Hydrogen Week
- European Hydrogen Week is an annual event organized by the European Commission, Hydrogen Europe, and others.
- It serves as a platform to discuss the future of hydrogen technologies, policy developments, and their role in decarbonizing Europe’s economy.
- It features conferences, exhibitions, and networking opportunities.
- It focuses on the development, deployment, and scaling of green hydrogen as part of the European Green Deal and the EU’s climate-neutrality targets for 2050.
Significance of India’s Partnership
- Strengthening Green Energy Goals: Aligns India with global initiatives in decarbonizing industries and energy systems, advancing its commitment to the Paris Agreement and Net Zero 2070 target.
- Access to Advanced Hydrogen Technologies: Provides India with cutting-edge hydrogen technologies from Europe, enhancing production, storage, and transportation capabilities for Green Hydrogen.
- Boosting Technological Innovation: Facilitates collaborative research and development, allowing India to create cost-effective hydrogen solutions and drive domestic innovation in clean energy.
- Building Global Leadership: Establishes India as a global leader in the Green Hydrogen sector, reinforcing its commitment to climate change mitigation and sustainable development.
PYQ:
[2019] In the context of proposals to the use of hydrogen-enriched CNG (H-CNG) as fuel for buses in public transport, consider the following statements:
1. The main advantage of the use of H-CNG is the elimination of carbon monoxide emissions
2. H-CNG as fuel reduces carbon dioxide and hydrocarbon emissions.
3. Hydrogen up to one-fifth by volume can be blended with CNG as fuel for buses.
4. H-CNG makes the fuel less expensive than CNG.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 4 only
(d) 1, 2, 3 and 4 |
Note4Students
From UPSC perspective, the following things are important:
Prelims level: BioE3 Policy;
Mains level: Significance of BioE3 Policy;
Why in the News?
The Union Cabinet has approved the ‘BioE3 (Biotechnology for Economy, Environment, and Employment) Policy’ proposed by the Department of Biotechnology to promote advanced biomanufacturing.
What is the BioE3 Policy?
The BioE3 (Biotechnology for Economy, Environment and Employment) Policy is a strategic initiative approved by the Indian Cabinet to foster high-performance biomanufacturing.
Aims and Objectives of the Policy:
- Innovation Support: The policy promotes research and development (R&D) and entrepreneurship in various thematic sectors, facilitating technological advancement and commercialization.
- Biomanufacturing Hubs: It proposes the establishment of Biomanufacturing & Bio-AI hubs and Biofoundries to enhance India’s bioeconomy.
- Focus Areas: The policy targets several strategic sectors, including high-value bio-based chemicals, biopolymers, smart proteins, precision biotherapeutics, climate-resilient agriculture, carbon capture, and marine and space research.
Significance of the Policy
- Economic Growth: It is expected to catalyze a “bio revolution” similar to the IT revolution, generating substantial job opportunities in biotechnology and biosciences.
- Sustainability Goals: The policy aligns with government initiatives for achieving a ‘Net Zero’ carbon economy and promotes sustainable lifestyles, thereby steering India towards accelerated green growth and a circular bio-economy.
- Job Creation: By expanding the skilled workforce in biotechnology, the policy aims to create various kinds of employment opportunities, addressing critical societal issues such as climate change, food security, and human health.
Present Status of Indian Bio-economy
- Growing Potential: The biotechnology sector is seen as a key player in addressing challenges in health, agriculture, environment, and energy. India has a large pool of young, skilled workers, with 47% of its population under the age of 25.
- Investment in R&D: Despite its potential, India spends less than 1% of its GDP on research, compared to countries like Israel and South Korea, which invest over 4%.
- Existing Infrastructure: The government has established 9 biotech parks and 60 bio-incubators, which support the growth of the biotechnology sector.
Challenges Ahead
- Educational Gaps: The current educational curriculum does not adequately prepare students for industry demands, creating a skills mismatch.
- Funding Issues: There is a lack of venture capital funding due to information asymmetry regarding the biotech industry, which hampers innovation and growth.
- Clinical Trials: India conducts a low percentage of clinical trials compared to global standards, which is a concern for the development of biopharmaceuticals.
- Research Investment: The government currently covers over 60% of total R&D spending, which is very different from countries where the private sector contributes a large portion.
Way forward:
- Enhance Industry-Academia Collaboration: Encourage partnerships between educational institutions and biotech companies to align curricula with industry needs, thereby reducing the skills mismatch and preparing students for emerging job markets.
- Increase Private Sector Investment: Implement policies and incentives to attract more private sector investment in R&D, such as tax benefits, public-private partnerships, and improved access to venture capital, to stimulate innovation and reduce reliance on government funding.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Clean energy
Mains level: Govt. initiative related to clean energy
Why in the News?
In her seventh consecutive Budget address, the Finance Minister unveiled initiatives demonstrating India’s dedication to advancing its clean energy transition.
Recent Observations
- In a seventh consecutive Budget speech, the Finance Minister announced measures indicating India’s commitment to its clean energy transition, including developing policies on pumped hydro storage, energy transition pathways to support nuclear energy, and energy efficiency.
- The memories of this summer’s record-breaking heatwaves, which drove up power demand, reflect both a growing economy and a warming climate.
- India has achieved 3 key milestones in the last decade:
-
- Near-universal electrification through the Saubhagya scheme;
- Five-fold increase in installed renewable energy capacity making India the fourth-largest country globally, and
- 40% drop in aggregate losses of power distribution companies.
- India’s annual electricity demand has been growing by 7-9% every year since the COVID-19 pandemic, with peak demand rising even faster. Climate change-induced weather extremes further exacerbate these challenges.
- In 2023 alone, China added 300 GW of solar and wind capacity, while the European Union added 73 GW. As of March, India’s cumulative renewable capacity stood at 144 GW, with another 128 GW in the pipeline
Investing in a cleaner, flexible, and resilient power grid will help our economy grow sustainably and create jobs in the clean energy sectors
- Infrastructure Development: The government has allocated significant resources for infrastructure development, recognizing that a robust energy grid is crucial for economic growth.
- Renewable Energy Capacity Goals: India aims to achieve 500 GW of renewable energy capacity by 2030. This goal is part of a broader strategy to increase the share of renewables in the energy mix, which currently stands at only 13%.
- Job Creation: Investments in clean energy infrastructure are expected to create numerous jobs.
- Diverse Clean Energy Resources: The Budget encourages the faster deployment of various clean energy resources, including solar and wind, to meet rising energy demands.
- Energy Storage Solutions: The emphasis on developing pumped energy storage systems and battery storage solutions is crucial for addressing the intermittency of renewable energy sources, enhancing grid flexibility and reliability.
- Taxonomy for Climate Finance: The introduction of a taxonomy to identify green activities aims to attract climate finance, facilitating investments in clean energy projects and supporting the transition to a sustainable energy economy.
Way forward:
- Accelerate Renewable Energy Deployment: Need to expedite the deployment of solar, wind, and other renewable energy projects to meet the 500 GW target by 2030.
- Enhance Energy Storage and Grid Resilience: Need to develop robust energy storage solutions, such as pumped hydro and battery storage, to address renewable energy intermittency.
Mains PYQ:
Q Clean energy is the order of the day.’ Describe briefly India’s changing policy towards climate change in various international fora in the context of geopolitics. (2022)
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Renewable energy
Mains level: Significance of Pumped Storage Projects
Why in the news?
The Union Budget for 2024-25 announced that “a policy will be introduced to promote pumped storage projects aimed at electricity storage and ensuring the seamless integration of the increasing share of renewable energy.
Why is renewable power generation subject to variations and weather changes?
- Due to Intermittent nature: Renewable energy sources, particularly solar and wind, are inherently intermittent. Solar energy is only available during daylight hours and is affected by weather conditions such as cloud cover, while wind energy varies with wind speed and direction. This variability leads to fluctuations in power generation, making it challenging to match supply with demand consistently.
- Daily and Seasonal Variations: The generation capacity of renewable sources can change significantly over short periods (hours to days) and longer periods (seasonal). For instance, solar power generation peaks during sunny days and drops to zero at night, while wind power can vary greatly depending on seasonal weather patterns.
Significance of Pumped Storage Projects
- Grid Stabilization: Pumped storage projects are critical for stabilizing the power grid by addressing the variability and intermittency of renewable energy sources like solar and wind.
- Energy Storage Capacity: PSPs account for over 94% of the installed global energy storage capacity, making them the most widely used technology for large-scale energy storage.
- Flexible Energy Generation: These projects can provide both base load and peaking power, offering flexibility in energy generation.
- Environmental Benefits: Pumped storage is a clean and environmentally friendly technology.
- Economic Viability: The cost of energy from pumped storage is competitive compared to other energy storage technologies.
How do Power Managers decide which energy source to use?
- Use of forecasting Techniques: Power managers utilize advanced forecasting techniques to predict renewable energy generation based on expected weather conditions. This allows them to plan the operation of different power plants in advance, ensuring a steady supply of electricity.
- Demand and Supply Management: Decisions on which energy source to use are based on real-time demand and the availability of renewable energy. When there is a surplus of renewable energy (e.g., during sunny or windy periods), it may be used to pump water in pumped storage systems. Conversely, when renewable generation is low, power managers may rely on more stable sources like hydro, coal, or nuclear power to meet demand.
Where are some of the Pumped Storage Projects of India situated?
- Kadamparai: Located in Tamil Nadu, this facility has a capacity of 400 MW and operates by pumping water to a higher reservoir during periods of surplus power generation.
- Other Notable Projects: India has several other pumped storage projects, including those at Nagarjunasagar, Kadana, and Panchet. These facilities contribute to managing the variability of renewable energy generation in the country.
How do the reservoirs in Kadamparai, Tamil Nadu operate?
- The Kadamparai pumped storage plant consists of two reservoirs at different elevations. Water is pumped from the lower reservoir to the upper reservoir when there is surplus power available, typically from solar or wind sources.
- When demand rises, especially during peak evening hours, water flows from the upper reservoir to the lower reservoir, turning turbines to generate electricity. This operation allows the plant to provide power for three to four hours during peak demand periods, effectively stabilizing the grid.
- The plant can switch between pumping and generating modes, allowing it to respond quickly to changes in power demand. This flexibility is crucial for integrating variable renewable energy sources into the grid.
Conclusion: The need to Develop a robust and flexible grid infrastructure that can efficiently handle the integration of renewable energy sources is crucial. Implementing smart grid technologies, including real-time monitoring, advanced forecasting techniques, and automated demand-response systems, can optimize the balance between supply and demand.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Upper Siang; Brahmaputra River.
Why in the News?
Activists are protesting against the Upper Siang Hydropower Project in Arunachal.
About Upper Siang Multipurpose Storage Project
- The Upper Siang project is a proposed 11,000 MW hydropower project on the Siang River in Arunachal Pradesh.
- The Siang, originating near Mount Kailash in Tibet (Tsangpo), flows over 1,000 km eastward, enters Arunachal Pradesh as the Siang, and later becomes the Brahmaputra in Assam.
- Initially proposed as two separate projects, it was consolidated into one larger project in 2017, to be built by the National Hydroelectric Power Corporation (NHPC), featuring a 300-metre high dam.
Strategic Importance:
- The Upper Siang project is seen as a strategic move to counter China’s hydel projects on the Tsangpo, particularly a 60,000 MW ‘super dam’ in Tibet’s Medog county.
- This super dam’s capacity is nearly 3x that of the Three Gorges Dam in China and is intended to divert water to northern China.
Environmental and Social Concerns
- Anti-dam organizations express concerns about the project’s environmental and social impact in their memorandum.
- The memorandum highlights the threat to delicate ecosystems, wildlife habitats, and biodiversity in Arunachal Pradesh, which already hosts numerous dams.
- The activists are particularly worried about the displacement of communities, as the project could submerge over 300 villages of the Adi tribe, including the district headquarters of Yingkiong.
- Activists are also wary of the project’s portrayal as a national interest endeavor and are troubled by a provision in the Forest (Conservation) Amendment Act, which exempts strategic projects within 100 km from India’s borders from clearance requirements.
Back2Basics: Forest (Conservation) Amendment Act, 2023
|
Details |
| Land Under the Purview of the Act |
Defines two categories of land under its purview:
- Land declared as forest under the Indian Forest Act or any other law, or notified as a forest after 25th October 1980.
- Land converted from forest to non-forest use before 12th December 1996.
|
| Exemptions from the Act |
Allows exemptions for:
- Up to 0.10 hectares of forest land for connectivity purposes along roads and railways.
- Up to 10 hectares for security-related infrastructure.
- Up to 5 hectares in Left Wing Extremism Affected Districts for public utility projects.
- Additionally, strategic projects within 100 km of international borders, LAC, and LoC are also exempted.
|
| Permitted Activities in Forest Land |
- Includes conservation, management, and development efforts.
- Activities like zoos, ecotourism facilities, silvi-cultural operations, and specified surveys are exempted from non-forest purposes.
|
| Assignment/Leasing of Forest Land |
- Extends the prerequisite for obtaining prior approval from the central government for the assignment of forest land to any entity, broadening the scope beyond private entities.
- It also grants the central government the authority to stipulate the terms and conditions governing such assignments.
|
|
PYQ:
[2011] The Brahmaputra, Irrawady and Mekong rivers originate in Tibet and flow it through narrow and parallel mountain ranges in their upper reaches. Of these rivers, Brahmaputra makes a “U” turn in its course to flow into India. This “U” turn is due to:
(a) Uplift of folded Himalayan series
(b) Syntaxial bending of geologically young Himalayas
(c) Geo-tectonic disturbance in the tertiary folded mountain chains
(d) Both (A) and (B) above |
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Viability Gap Funding (VGF) Scheme; Its features.
Why in the News?
- The Union Cabinet, chaired by the PM, approved the Viability Gap Funding (VGF) scheme for offshore wind energy projects.
Note: Offshore wind energy projects refer to developing and operating wind farms located offshore, typically in coastal waters or oceans.
Back2Basics: Viability Gap Funding (VGF) Scheme
- The VGF scheme is a financial tool to support infrastructure projects that are economically justified but face financial viability challenges.
- It was launched in 2004 to address the gap between economically viable infrastructure projects and their financial feasibility under traditional financing models.
- Administration: Administered by the Ministry of Finance, Government of India, the scheme operates as a Plan Scheme with annual budget allocations.
Features:
- Capital Subsidy: VGF provides a grant (capital subsidy) to infrastructure projects to make them financially attractive for private sector participation. This subsidy helps cover part of the cost that private investors would find economically unviable.
- Project Eligibility: Projects eligible for VGF are typically selected through competitive bidding processes. They must demonstrate economic justification but face challenges in attracting private investment solely on commercial terms.
- Disbursement Timing: The VGF grant is disbursed during the construction phase of the project. However, disbursement is conditional upon the private sector developer making the required equity contribution to the project.
- Budgetary Allocation: Funds for VGF are allocated from the government’s budget. Sometimes, contributions may also come from the statutory authority that owns the project asset.
- Limitations: Additional financial assistance beyond the VGF amount is capped at 20% of the total project cost. This additional support can be provided by the sponsoring Ministry, State Government, or the statutory entity involved.
Benefits:
- Encouraging Investment: By reducing the financial risks associated with infrastructure projects, VGF encourages private sector participation, leading to faster project implementation and improved service delivery.
- Infrastructure Development: The scheme supports the development of critical infrastructure such as transportation (roads, railways, airports), energy (power generation, transmission), and public utilities.
|
About VGF Scheme for Offshore Wind Energy Projects
-
- The VGF scheme aligns with the National Offshore Wind Energy Policy (2015) to harness India’s offshore wind potential.
- It aims to reduce power costs from offshore wind projects, making them viable for DISCOMs through government support.
- It seeks installation and commissioning of 1 GW of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu).
-
- Private Developers will execute projects via transparent bidding.
- Power Grid Corporation of India Ltd (PGCIL) will build power evacuation infrastructure.
- Total outlay: Rs. 7453 crore, including Rs. 6853 crore for installing and commissioning 1 GW of projects in Gujarat and Tamil Nadu.
Advantages of Offshore Wind Energy:
- Offshore wind offers higher reliability, lower storage requirements, and greater employment potential than onshore wind and solar.
- The development will attract investments, build indigenous manufacturing capabilities, and foster technology advancements.
Environmental and Economic implications:
- 1 GW projects will generate 3.72 billion units annually, reducing CO2 emissions by 2.98 million tons per year for 25 years.
- Expected to kickstart India’s offshore wind sector, supporting initial development of 37 GW capacity with an investment of Rs. 4,50,000 crore.
- Creates an ecosystem for ocean-based economic activities, contributing to India’s energy transition goals.
PYQ:
[2018] With reference to solar power production in India, consider the following statements:
- India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.
- The solar power tariffs are determined by the Solar Energy Corporation of India.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
[2016] Give an account of the current status and the targets to be achieved pertaining to renewable energy sources in the country. Discuss in brief the importance of National Programme on Light Emitting Diodes (LEDs). |
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Critical Mineral Acquisition Plans of India in Africa
Mains level: Government Initiatives to Secure Critical Minerals
Why in the news?
India has signed new agreements and updated existing ones with a dozen African countries to secure critical minerals. This initiative is crucial for achieving India’s energy transformation goals.
India’s Critical Mineral Acquisition Plans in Africa
- India has signed new agreements and updated existing ones with a dozen African countries to secure critical minerals.
- This initiative is crucial for India’s energy transformation goals, aiming to diversify sources and reduce dependence on any single supplier.
- The agreements are part of a broader strategy to secure access to minerals necessary for renewable energy technologies and electric vehicles.
Demand for Energy in India and China’s Dominance
- Energy Demand in India: India’s peak power demand increased to 250 GW in 2023-24, marking a 12.7% increase from the previous year. By 2030, India’s peak power demand is expected to reach 366 GW, up from the current level of 240 GW.
- China’s Dominance: China leads in securing and processing critical minerals, having established long-term relationships with mineral-rich countries in Africa and Latin America. Chinese companies dominate mining rights in economically poor yet mineral-rich nations.
- China has built significant capacities for processing and refining minerals, making it the primary global hub for critical mineral processing.
India’s Other Overseas Critical Mineral Acquisition Plans
- Earlier this year, India signed an agreement with Argentina to explore and develop five lithium brine blocks.
- The Geological Survey of India (GSI) discovered inferred lithium reserves of 5.9 million tonnes in Jammu & Kashmir.
- India aims to diversify its sources of critical minerals by securing mining leases abroad, ensuring a stable and sustainable supply chain.
|
Government Initiatives to Secure Critical Minerals
- Exploration and Geological Studies: The government is pushing for more extensive exploration and geological studies within India to identify potential reserves of critical minerals. The Geological Survey of India has been tasked with accelerating the exploration of India’s 3.2 lakh sq km land mass using new data and technologies.
- Securing Mining Leases Abroad: India is focusing on securing mining leases in other countries to ensure a diversified supply of critical minerals. The agreements with African countries and Argentina are examples of this strategy.
- Building Domestic Capacities: The government is providing incentives to build refining and processing capacities within India for critical minerals. There is an emphasis on attracting private miners, both domestic and global, to participate in critical mineral exploration within India.
- Policy and Auction Reforms: The government is analyzing why auctions often fail to generate enough interest and is considering policy changes to attract big players. Coordinated efforts between the Centre and state governments on clearances and royalty payments are being emphasized to streamline the auction process.
- White Hydrogen Exploration: There is a call for active exploration of potential White Hydrogen deposits within India’s geographical borders.
Way forward:
- Accelerate exploration efforts across India’s 3.2 lakh sq km land mass.
- Utilize new data sources and advanced technologies to identify potential reserves of critical minerals.
- Focus on unexplored areas for potential discoveries of critical minerals, including White Hydrogen deposits.
Mains PYQ:
Q Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objectives? Explain. (UPSC IAS/2022)
Note4Students
From UPSC perspective, the following things are important:
Prelims level: World Future Energy Summit 2024, YFEL Program
Mains level: NA
Why in the news?
A panel discussion on “Future Growth Opportunities for Long Duration Energy Storage” was held at the World Future Energy Summit 2024 in Abu Dhabi.
About World Future Energy Summit (WFES)
- The WFES is an annual event held in Abu Dhabi; hosted in the United Arab Emirates, aiming to advance future energy, energy efficiency, and clean technologies.
- It began in 2008, held under the patronage of Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi.
- Public relations firm Edelman helped set it up to “burnish the UEA’s green credentials“.
- It was established as a platform to address the growing need for renewable energy solutions and sustainable development in response to global energy challenges.
Key Initiative: Young Future Energy Leaders
- The Young Future Energy Leaders (YFEL) is an element of the annual World Future Energy Summit (WFES).
- A program of the Masdar Institute, it is committed to raising awareness and engaging students and young professionals in the fields of renewable energy and sustainability.
PYQ:
[2014] Which of the following organizations brings out the publication known as ‘World Economic Outlook’?
(a) International Monetary Fund
(b) United Nations Development Programme
(c) World Economic Forum
(d) World Bank |
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Heatwave;
Mains level: Climate Change; Heatwave;
Why in the News?
The India Meteorological Department (IMD) recently said that India will have more than the ‘usual’ number of days with heat waves in this summer.
Increasing Temperature in India and its impact as per IMD:
- Temperature Predictions: The Indian Meteorological Department (IMD) predicts “above-normal” temperatures for April-June 2024, with a probability of 55%-65% in one half of the country and over 65% in the other half. Few parts are expected to have normal or below-normal temperatures.
- Effect of Heat on Agriculture: Higher heat negatively impacts crop yield, agricultural workers’ productivity, and water availability, varying in degree depending on the crop.
- Consequences of Heat in Urban Area: Increased heat leads to higher power demand in urban and industrial centers, poses deadly risks for outdoor workers (such as at construction sites), overwhelms health service providers (especially affecting the very young and old), and highlights the importance of access to clean, cool water, indoor ventilation, and bathrooms.
- Power Demand: The availability of power is crucial for addressing the effects of heat. A chart shows that in March 2024, the average evening peak-hour demand reached a new high of 190 GW.
Major challenges around the Energy Demand and Government Targets:
- Government Targets: The government aims to achieve 500 GW of power generation capacity from renewable energy sources by 2030. Additionally, it has committed to producing 50% of its power from non-fossil fuel energy sources by the same year.
- Heat increases power demand: Heat boosts power demand in cities and industries, heightens risks for outdoor labor, strains healthcare services for vulnerable groups, and underscores the necessity of clean water, ventilation, and bathrooms. Power availability is fundamental for addressing these challenges.
- Focus on Solar Power: A substantial portion of the renewable energy addition will come from solar power. However, due to the intermittent nature of solar output and the ongoing establishment of power storage capacity, coal is still relied upon to meet peak demand.
- Coal’s Dominance: Chart 3 (above) illustrates the gross electricity generated using coal in India and coal’s share in total electricity generation. The coal’s share has remained between 70-74% since at least FY16.
- Commercially Viable Energy Storage: In India, the most commercially viable energy storage forms currently are battery-based and Pumped Hydro Storage (PHS).
- Renewable Energy Generation: Chart 4 depicts the gross electricity generated using renewable sources in India and the share of renewable sources in total electricity generation. The share of renewables, including solar, hydro, wind, etc., has remained between 20-25% since at least FY16
Major Dilemma For India: Cannot ignore Coal immediately:
- Coal is projected to continue as the backbone of the Indian energy system until the next two decades and its phase-down will require active policies on critical minerals, according to a report by the Indian Institute of Management (IIM)- Ahmedabad.
- The report, titled ‘Synchronising energy transitions towards a possible Net Zero for India: Affordable and Clean Energy for All,’ asserted that net zero is not possible without substantial nuclear power and renewable energy generation by 2070.
- To achieve net-zero energy systems by 2070, the report mentioned that the electricity sector will need to decarbonize well before that.
|
Way Forward:
- NDC Goals: The remaining gaps in emissions will be offset through sequestration in forestry and tree cover as envisaged in our Nationally Determined Contributions (NDCs).
- Need for Technological intervention: There is no silver bullet to achieve net zero. The transition needs multiple pathways to be adopted with the co-existence of myriad technologies in our energy basket.
Mains PYQ
Q Discuss the implications of heightened heat waves in India, as highlighted by recent statements from the India Meteorological Department (IMD).
Note4Students
From UPSC perspective, the following things are important:
Prelims level: About Green , Blue and grey hydrogen
Mains level: Objecive of MNRE scheme, significance of hydrogen fuel vehicles and Challenges
why in the news?
Recently, the Ministry of New and Renewable Energy (MNRE) has announced a Rs-496-crore (until 2025-26) scheme to support pilot projects that either test the viability of green hydrogen as a vehicle fuel or develop secure supporting infrastructure such as refuelling stations.
Objecive of MNRE scheme
(i) validation of technical feasibility and performance of green hydrogen as a transportation fuel
(ii) evaluation of the economic viability of green hydrogen-powered vehicles
(iii) demonstration of safe operation of hydrogen-powered vehicles and refuelling stations.
About Green , Blue and grey hydrogen
The significance of hydrogen fuel vehicles, particularly hydrogen internal combustion engine (ICE) vehicles and hydrogen fuel cell electric vehicles (FCEVs)
- Zero Carbon Emissions: Both hydrogen ICE vehicles and FCEVs produce zero carbon emissions during operation.
- Energy Efficiency: While research suggests that burning hydrogen in an ICE vehicle may be less energy-efficient than using it in a fuel cell, FCEVs still offer high energy efficiency compared to traditional internal combustion engine vehicles, particularly those powered by fossil fuels like diesel and petrol.
- Clean Energy Production: Hydrogen can be produced through various renewable energy sources, such as wind, solar, and hydroelectric power.
- Lightweight and Increased Payload Capacity: Hydrogen FCEVs typically weigh less than battery electric vehicles (BEVs) due to the lighter weight of hydrogen and the fuel cell stack compared to EV batteries.
- Long-haul Freight Applications: Research indicates that long-haul FCEVs can carry freight amounts similar to diesel trucks, while BEVs may suffer from a weight penalty due to heavier batteries. .
- Diversification of Energy Sources: Hydrogen fuel vehicles offer a viable alternative to battery electric vehicles, providing diversification in energy sources for transportation.
Challenges
- Storage and Transportation Challenges: Developing specialized cylinders capable of safely storing high-pressure green hydrogen is essential. Existing cylinders designed for compressed natural gas (CNG) are not suitable for hydrogen storage
- Fuel Costs and Infrastructure: Green hydrogen-powered vehicles face challenges in competing with battery electric vehicles (BEVs) due to higher fuel costs and the need for infrastructure development, including hydrogen refueling stations. The cost of establishing and maintaining hydrogen refueling infrastructure is significant, hindering the widespread adoption of hydrogen FCEVs.
- Safety Concerns: Hydrogen is highly flammable, necessitating robust safety standards and protocols for handling and storing the fuel at refueling stations.
Conclusion
Green hydrogen offers zero emissions, energy efficiency, and diversification in energy sources for transportation. However, challenges like storage, infrastructure costs, and safety concerns hinder widespread adoption, despite MNRE’s support scheme.
Mains PYQ
Q How is efficient and affordable urban mass transport key to the rapid economic development in India? (UPSC IAS/2019)
Q Discuss in detail the photochemical smog emphasizing its formation, effects and mitigation. Explain the 1999 Gothenburg protocol.(UPSC IAS/2022)
Note4Students
From UPSC perspective, the following things are important:
Prelims level: CO2eq
Mains level: Policy consistency and focus on achieving the goal of being net-zero by 2070
Central Idea:
The article delves into India’s current carbon emissions landscape, spotlighting the Global Carbon Project’s findings released during COP28. It underscores the imperative for a thoughtful decarbonization strategy, scrutinizing challenges and potential resolutions, particularly in the context of renewable energy, electric vehicles (EVs), and the prospect of green hydrogen.
Highlights:
- India’s projected CO2 emissions are poised to surpass 3 gigatons by the close of 2023, reflecting an 8% uptick from 2022.
- Despite lower per capita and cumulative emissions compared to global averages, India grapples with the task of mitigating emissions in key sectors: energy, agriculture, and industry.
- The energy sector shoulders 76% of greenhouse gas emissions, necessitating a shift away from fossil fuels, notably in power generation and transportation.
Challenges:
- Transport Sector Transition: EV adoption confronts challenges due to dependence on the fossil fuel-reliant power grid and infrastructure gaps, especially for four-wheelers and heavy transport.
- Industrial Decarbonization: Industries reliant on intense heat, such as iron and steel, face hurdles in substituting fossil fuels, as renewable sources may fall short in meeting their power requirements.
- Green Hydrogen: Despite being hailed as a solution, global production of green hydrogen remains minimal. Challenges include the need for substantial green power and water, along with issues in transportation and energy-intensive storage methods.
Key Terms:
- CO2eq: Carbon dioxide equivalent, a metric expressing the global warming potential of various greenhouse gases.
- Renewable Capacity: The quantum of energy a country can generate from renewable sources like solar and wind.
- Green Hydrogen: Hydrogen produced using renewable energy sources, deemed a potential clean fuel.
Key Phrases:
- “Low-hanging fruit”: Referring to the simplest or most readily achievable goals, such as scaling up renewable capacity.
- “Net-zero by 2070”: The aspiration to achieve equilibrium between greenhouse gas emissions produced and removed from the atmosphere by 2070.
Key Quotes:
- “Reduction in the use of fossil fuels can be easily done in the case of power generation…”
- “What is thus evident is that the easiest way to decarbonise is to scale up renewable capacity…”
Key Statements:
- “India’s per capita and cumulative emissions notwithstanding, we need to strategize our decarbonization process.”
- “The best solution for sectors like heavy transport or industries is getting access to green hydrogen.”
Key Examples and References:
- Reference to India’s Third National Communication (2023) offering data on greenhouse gas emissions.
- Mention of the challenges in adopting electric vehicles, especially for heavy transport and four-wheelers.
Key Facts and Data:
- India’s total greenhouse gas emissions in 2019 were 3.1 gigatons of CO2eq, with the energy sector contributing 76%.
- The energy sector, particularly power generation, accounts for 39% of CO2 emissions in India.
Critical Analysis:
- The article underscores the intricacies of decarbonization, recognizing the limitations of current solutions like electric vehicles and the hurdles in transitioning industries.
- It stresses the need for a comprehensive approach, amalgamating renewable energy scaling with advancements in technologies like green hydrogen.
- The author critiques policy inconsistencies, highlighting the incongruity between announcing new coal-based capacity and a prior commitment to avoid it.
Way Forward:
- Prioritize renewable capacity growth by simplifying land acquisition processes, ensuring regular payments to generators, and facilitating access to the grid.
- Address challenges in the transport sector and industry by promoting research and development in sustainable alternatives like green hydrogen.
- Maintain policy consistency and focus on achieving the goal of being net-zero by 2070.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: White Hydrogen
Mains level: NA
Central Idea
- In a groundbreaking discovery, scientists searching for fossil fuels beneath northeastern France stumbled upon a vast reservoir of hydrogen.
- Initial calculations suggest that this deposit of “white hydrogen” is among the largest ever found, estimated to range from 6 million to 250 million metric tons, holding immense promise for clean energy applications.
Understanding White Hydrogen
- White hydrogen is a naturally occurring gas found within the Earth’s crust.
- While hydrogen is the most abundant element in the universe, it typically combines with other molecules.
- Hydrogen is hailed as a promising clean energy source for industries such as aviation, shipping, and steel production.
- Its combustion produces only water, making it a highly eco-friendly energy option compared to solar or wind energy.
Other types of Hydrogen
|
Obtained from |
Production Method |
Carbon Emissions |
| Green Hydrogen |
Water and renewable energy sources |
Electrolysis with renewables |
Very low to zero |
| Blue Hydrogen |
Natural gas |
Steam Methane Reforming (SMR) with Carbon Capture and Storage (CCS) |
Reduced, but captured |
| Gray Hydrogen |
Natural gas |
Steam Methane Reforming (SMR) without CCS |
High |
Significance of the Discovery
- Shifting Paradigm: Historically, scientists believed that large-scale hydrogen production required lab-based processes. Hydrogen was categorized into different types based on their origin, such as gray, brown, blue, and green.
- Untapped Potential: White hydrogen, as a naturally occurring and abundant resource, offers a significant source of clean-burning energy.
- Natural and Cost-Effective: Unlike energy-intensive production methods, white hydrogen is naturally occurring and more cost-effective. Estimated costs for white hydrogen production are approximately $1 per kilogram, while green hydrogen costs around $6 per kilogram.
Back2Basics: Steam Methane Reforming (SMR) Process
SMR is the most widely used method for industrial hydrogen production, accounting for the majority of global hydrogen production.
- Feedstock: It uses methane (CH4) from natural gas as its primary feedstock, making it a cost-effective and readily available source of hydrogen.
- Reaction: SMR involves the reaction of methane with high-temperature steam (H2O) in the presence of a catalyst. The primary chemical reactions produce hydrogen (H2) and carbon monoxide (CO).
- Endothermic Process: The reactions in SMR are highly endothermic, meaning they absorb a significant amount of heat energy, typically supplied through external heating.
- By-products: In addition to hydrogen and carbon monoxide, SMR also produces carbon dioxide (CO2) and unreacted methane.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: PushP Portal
Mains level: NA
Central Idea
- The National Power Committee (NPC) has urged States to contribute their insights towards shaping incentives for both buyers and sellers on the Power High Price Day Ahead Market (HP-DAM) and Surplus Power Portal (PUShP).
- This innovative platform, introduced by the Ministry of Power, aims to enhance power availability, optimize utilization, and facilitate efficient power trading.
PUSHp Portal
- Concept Launch: The Ministry of Power unveiled the HP-DAM and PUShP to address power scarcity during peak demand periods and to encourage surplus power trading.
- Price Flexibility: The platform allows certain sellers to offer power at prices exceeding the ceiling of Rs 12 per unit during peak demand, promoting higher availability.
- Surplus Power Indication: Power distribution companies (DISCOMs) can display their surplus power availability on the portal, indicating the block times, days, or months.
- Requisition Mechanism: DISCOMs in need of power can requisition the surplus power from the portal, promoting efficient allocation.
Operational Mechanism
- Cost Determination: New buyers will pay both variable charges (VC) and fixed costs (FC) as regulated by authorities.
- Reassignment Implications: Once power is reassigned, the original beneficiary relinquishes the right to recall power, including the entire FC liability.
- Reducing Fixed Costs: This approach alleviates the fixed cost burden on DISCOMs, making power distribution more efficient.
- Optimal Capacity Utilization: The platform ensures that all available generation capacity is effectively utilized, mitigating wastage.
Back2Basics: Day Ahead Market
- A Day Ahead Market is a platform for trading electricity where delivery occurs within 24 hours from the following day’s midnight.
- Electricity is traded in 15-minute time blocks, and prices are determined through auction bidding.
- The auction process establishes prices and the quantum of electricity traded, ensuring transparency.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Clean energy solutions
Mains level: Energy crisis and Need of Transition towards renewables
Central Idea
- Access to affordable and reliable energy is essential for economic development and public services. However, the global energy market has been disrupted due to demand and supply-side factors leading to rising prices and disruptions in energy supply chains. As a result, countries with a high dependence on fossil fuels, including India, faced a significant challenge.
The correlation: Energy availability and economic development
- The correlation between energy availability and economic development is that energy availability and accessibility are essential inputs for many public services, and securing affordable and reliable access to energy remains a central political and economic imperative for almost all governments.
- Energy availability and accessibility are necessary for economic growth and development, and a lack of access to energy can hamper the growth of industries, limit productivity, and impede social development.
Factors that contributed to the Global Energy Crisis
- Demand and Supply-side Factors: There have been disruptions in the oil and gas supply chains due to the ongoing Russia and Ukraine war. Additionally, energy prices came under pressure due to a sudden rise in demand resulting from abnormally high temperatures and associated heatwaves across the globe. These factors inflated the international price of oil and natural gas.
- Dependence on Finite Fossil Fuels: Fossil fuels account for over 80% of global energy requirements and over 64% of electricity generation worldwide. Additionally, most countries are net importers of fossil fuels, and thus prone to adverse supply shocks resulting from various geopolitical and economic events.
- Overdependence on Fossil Fuels: Many countries turned to coal to meet their energy needs, while those already using coal intensified its exploitation, putting immense pressure on the coal market.
- Increased Cost of Electricity: The increased cost of electricity due to a higher usage of fossil fuel-based sources imposed a heavy burden on low-income households since they spend a larger share of their incomes on electricity and gas.
- Widespread Power Outages: Widespread power outages in many countries due to disruptions in electricity supply threw lives out of gear.
- Dependence on Imported Fossil Fuels: Europe, for instance, faced a challenging situation due to its historic high dependence on imported gas from Russia to meet its energy requirements.
- Climate Change: Fossil fuels account for 75% of global greenhouse gas emissions and around 90% of carbon dioxide emissions. Climate events, such as floods and droughts, cause immense human and economic loss.
Impact on countries
- High energy prices: The increased cost of electricity due to a higher usage of fossil fuel-based sources imposes a heavy burden on low-income households since they spend a larger share of their incomes on electricity and gas.
- Power outages: Widespread power outages in many countries due to disruptions in electricity supply throw lives out of gear. For instance, Bangladesh witnessed a countrywide blackout as many gas- and diesel-based power plants, responsible for approximately 85 percent of the country’s electricity generation, were forced to shut down due to fuel shortages.
- Slowdown in economic growth: Increased prices and disrupted supply severely impacted those countries with a high dependence on fossil fuels, particularly its import, and led to a slowdown in global economic growth, forcing some countries and regions into recession.
- Environmental degradation: Overdependence on fossil fuels impacts countries adversely in the form of air and water pollution and soil degradation, while also being a significant cause of climate change.
- Foreign exchange reserves: The dependence on fossil fuels also affects countries’ foreign exchange reserves, as the fluctuations in prices of fossil fuels affect their import bills and balance of payments.
- Revenue loss: Many regions and their economies, especially in developing countries, depend on incomes derived from fossil fuel-based employment, such as mining, power generation, transmission, and distribution and storage. In many regions, governments are also dependent on the revenue generated from fossil fuels to enhance infrastructure that enables local communities to expand and diversify their livelihood options.
Challenges in way of transition to renewable sources of energy
- Mobilizing capital: While the cost of clean energy is declining, many clean energy technologies require high upfront investment costs, which may be beyond the capacities of most developing countries. Additionally, international support for developing countries is lacking, making it difficult for them to transition to renewable energy sources without supportive international actions.
- Ensuring a just transition: There is a need to ensure decent work opportunities and social support for people likely to lose their livelihoods in the process of transitioning to low-carbon and renewable-based economies. Many people are employed in the fossil fuel industry globally, and there is a risk of destabilizing local economies during the transition process.
- Technical challenges: The transition to renewable energy sources may require significant upgrades to infrastructure, including energy storage and transmission systems, which can be costly.
- Policy and regulatory challenges: The transition to renewable energy sources requires significant policy and regulatory changes, including reforms to subsidy systems, pricing mechanisms, and energy markets.
- Reliability and intermittency of renewable sources: Unlike fossil fuels, renewable energy sources are often intermittent, making it difficult to guarantee a stable supply of electricity. This may require investments in energy storage and backup power systems to ensure reliable supply.
- Public acceptance: The transition to renewable energy sources may face resistance from some stakeholders, including those who are reliant on fossil fuels for their livelihoods or those who are concerned about the visual and environmental impacts of renewable energy infrastructure.
Way ahead: Addressing these challenges
- Mobilizing capital: Developed countries need to fulfill their commitment to providing climate finance to developing countries. Innovative financial instruments such as green bonds and blended finance could also be used to attract private investment.
- Ensuring a just transition: Governments need to develop comprehensive plans that protect workers and communities affected by the shift to renewable energy. This could involve retraining programs, investment in new industries, and social safety nets.
- Investing in research and development: Governments, international organizations, and the private sector need to invest in research and development to drive down the costs of renewable energy technologies and improve their efficiency.
- Promoting energy efficiency: Governments and businesses need to prioritize energy efficiency measures such as retrofitting buildings and improving industrial processes to reduce energy demand and costs.
- Accelerating deployment of renewable energy: Governments need to set ambitious targets for renewable energy deployment and create policy frameworks that incentivize investment in clean energy.
- Building energy infrastructure: Governments need to invest in building the infrastructure needed to support the deployment of renewable energy, including grid upgrades, energy storage, and electric vehicle charging stations.
- Promoting international cooperation: The transition to renewable energy requires international cooperation, especially between developed and developing countries. Developed countries can support developing countries through technology transfer, capacity building, and financial support.
Facts for prelims
Distributed Renewable Energy (DRE)
- DRE refers to the generation and distribution of electricity from renewable energy sources, such as solar, wind, hydro, geothermal, and biomass, through small-scale, decentralized systems.
- These systems are often installed in remote or rural areas where it is difficult or expensive to connect to a centralized power grid.
- DRE systems can range from individual rooftop solar panels to small-scale wind turbines, mini-hydro systems, and biomass generators.
- They are typically designed to serve a single household or community, rather than a large urban or industrial center.
- DRE systems are also known as off-grid or mini-grid systems, and they can be standalone or connected to a larger power grid.
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Conclusion
- The transition towards renewables is an attractive option for countries to hedge against the risks associated with fossil fuel-based energy sources. However, this requires access to affordable finance and international support to enable a just transition through on-the-job retraining programs, infrastructure investments, and so on. Access to affordable and reliable energy is crucial for sustainable economic development.
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Also Read:
Note4Students
From UPSC perspective, the following things are important:
Prelims level: NA
Mains level: India's transition to a self-reliant clean energy system.
Central Idea
- Lessons learned from the liberalization of upstream petroleum sector can guide India’s transition to a self-reliant clean energy system.
Background
- In 1980, then-Prime Minister Indira Gandhi took a significant step in liberalizing the upstream petroleum sector in India. This move aimed to reduce the country’s reliance on external sources for petroleum and protect it from supply shocks. However, the liberalization did not bridge the gap between domestic demand and indigenous supply.
- In 2020, Prime Minister Narendra Modi introduced the production-linked incentive (PLI) scheme to promote investment in minerals, components, and equipment required for the generation and consumption of clean energy. This decision was driven by the strategic imperative to transition to a self-reliant clean energy system and reduce dependence on external sources of energy.
Bridging the gap between demand and supply in the clean energy sector
- Demand and supply gap: The liberalization of upstream petroleum did not bridge the gap between the domestic demand for petroleum and indigenous supply.
- Capital is not enough: The clean energy sector must not presume that the availability of technical talent and capital will be enough to create a world-class hub for the manufacture of batteries, solar cells, wafers, and modules.
Efficient Implementation of Technology in Clean Energy Sector
- India’s oil and gas producing average: The recovery rate of oil and gas from India’s producing fields has averaged between 25-30%, while fields of comparable geology across the world have a recovery rate between 40-60%.
- China’s dominance in clean energy value chain: China’s dominance of the clean energy value chain is because its process engineers have perfected the implementation of the several technological steps required to convert raw material into end product.
Reduce entry barriers and improve business condition
- India cannot compete on the size of the incentive package, and the endeavor should instead be to lower entry barriers, ease business conditions and remove the perception that India offers a high-cost operating environment.
India’s Dependency on External Market and Two-Track Policy with China
- India remains dependent on the external market for supplies of petroleum, but the country should desist from building a high-cost, domestic, clean energy hub that is forever dependent on subsidies.
- India should continue with its two-track policy and strengthen its trading relationship with China.
Conclusion
- India can learn from the lessons of the last 40 years to transition to a self-reliant clean energy system. The country needs to focus on creating an enabling ecosystem, efficiently utilizing technology, and easing business conditions to attract international investment. India should focus on trading relationships and not build a high-cost, domestic clean energy hub dependent on subsidies.
Mains Question
Q. India’s clean energy sector has enormous potential for growth, however there is a gap between domestic demand and indigenous supply. What specific measures can India take to bridge this gap and emerge as global leader in renewable energy?
Note4Students
From UPSC perspective, the following things are important:
Prelims level: State Energy Efficiency Index
Mains level: Not Much
The Union Minister of Power and New & Renewable Energy has released the report of State Energy Efficiency Index (SEEI) 2021-22.
State Energy Efficiency Index
- The SEEI 2021-22 has been developed by Bureau of Energy Efficiency (BEE) in collaboration with Alliance for an Energy Efficient Economy (AEEE).
- SEEI 2021-22 consists of 50 indicators (common and programme-specific) spanning 7 sectors – buildings, industry, municipal services, transport, agriculture, DISCOMs, and cross-sector.
- 36 states and union territories have been assessed for their energy efficiency progress in FY 2020- 21 and FY 2021-22 in SEEI 2021-22.
- Based on their efforts and achievements, states have been classified as ‘Front runner’, ‘Achiever’, ‘Contender’, and ‘Aspirant’.
Highlights of the 2021-22 report
| Category |
States |
| Front Runner (>60 points) |
Andhra Pradesh, Karnataka, Kerala, Rajasthan, Telangana |
| Achiever (50-60 points) |
Assam, Haryana, Maharashtra, Punjab |
Importance of SEEI
- The SEEI improves data collection, enables cross-state collaboration, and develops energy efficiency program ideas.
- It helps states identify areas for improvement, learn from best practices, and adopt an economy-wide approach to energy efficiency implementation.
- By prioritizing energy efficiency, it aims at driving decarbonization efforts and achieving a more sustainable future.
Key recommendations of the report
The report outlines the following recommendations to help states drive change in EE which will contribute towards the fulfillment of SDGs and NDC:
- Enabling fiscal assistance for energy efficiency in the focus sectors.
- Developing institutional capacity in states and UTs to address emerging needs and challenges in energy efficiency implementation.
- Enhancing cross-functional collaborations across financial institutions, energy service companies, and energy professionals in large-scale energy efficiency implementation in states.
- Mainstreaming energy data reporting and monitoring across sectors.
Back2Basics: Bureau of Energy Efficiency (BEE)
- BEE was established by the Government of India on 1st March 2002 under the provisions of the Energy Conservation Act, 2001.
- The primary objective of BEE is to reduce the energy intensity of the Indian economy by developing policies and strategies based on self-regulation and market principles.
- BEE coordinates with designated consumers, designated agencies, and other organizations to perform its functions under the Energy Conservation Act.
- The Energy Conservation Act provides for both regulatory and promotional functions for BEE.
- BEE’s role includes recognizing, identifying, and utilizing existing resources and infrastructure to promote energy conservation and efficiency.
- It works towards driving energy efficiency policies and programs at the state and local level, enabling cross-state collaboration and developing energy efficiency program ideas.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Read the attached story
Mains level: Utilizing defunct mines for RE generation
Central idea: Green Gravity is an Australian renewable energy company that has developed a unique scheme to generate electricity. The company’s plan involves using defunct mines, such as the Kolar Gold Fields (KGF) in Karnataka, India, to produce reliable and cost-effective renewable energy.
The breakthrough: Gravity-Operated Weighted Blocks
- It uses a weighted block of up to 40 tonnes up to the top of a mine shaft using renewable power during the day when it is available.
- When backup power is required, the heavy block will fall under gravity, powering a generator via a connected shaft or rotor.
- The depth to which the block falls can be determined via a braking system, giving control over the amount of power produced.
Comparison to Pumped Hydropower Storage
- Green Gravity’s approach is similar to the well-established approach of “pumped hydropower” storage.
- In this approach, water is pumped upstream electrically into a reservoir and released downhill to move a turbine and produce electricity when needed.
Need for such technology
- Renewable energy, such as solar and wind power, often faces the challenge of being unreliable during nights or windless days.
- Charging a battery for backup power is very expensive and inefficient.
Advantages of Weighted Blocks over Water
- Using weighted blocks instead of water means that decommissioned mines can be put to use, and the environmental costs and challenges of moving water up can be avoided.
- This approach can also mean less reliance on coal-produced power and access to reliable power.
Potential Use in KGF
- The Kolar Gold Fields in Karnataka, India, is an iconic but defunct gold mine that has the potential to be used for renewable energy production.
- The weighted block apparatus could produce up to thousands of megawatt-hours of power from the mine’s deep shafts, some of which run nearly 3,000 metres.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: Sand Battery
Mains level: Not Much
Finland has successfully installed the world’s first sand battery that can store heat from various energy sources for months.
What is the Sand Battery System?
- The battery is a massive steel silo, 7 m tall and 4 m wide with 100 tonnes of sand, and was installed in Finland’s Kankaanpaa town in June 2022.
- It is connected to the town’s centralised heating network that keeps buildings and public water systems warm.
- The storage system has three main components:
- Sand silo,
- Electrical air heater, and
- Air-to-water heat exchanger
Working principle
- For charging the sand silo, air is heated to 600°C in the electrical air heater.
- The hot air is then circulated inside the silo using a heat-exchange pipe and blowers to raise the temperature of the sand at the silo’s core to 600°C.
- When the storage enters the discharging stage, the blowers are used to pump air into the pipe inside the sand silo.
- Once the air reaches 200°C, it is transferred to the air-to-water heat exchanger, where it is used to boil water.
- It is then sent to the heating network.
Electricity Requirements and Capacity of the Battery
- The storage system requires electricity at all times to charge the battery, monitor the temperature during standby, and run the blowers when the battery is used.
- The installed battery can store 8 megawatt-hours (MWh) of energy and release heat at 0.1 MW, which is enough to provide heating and hot water for about 100 homes and a public swimming pool.
Advantages of Sand as a Heat Storage Material
- The Finnish researchers replaced water with sand in the battery system because of its advantages.
- Sand can be heated up to 600 degrees Celsius (°C), whereas water starts to boil at 100°C.
- It also has low heat conductivity, which reduces energy loss.
Importance of Heat Energy
- Heat accounts for half of the world’s energy use, followed by transport (30 per cent) and electricity (20 per cent), as per the International Energy Agency (IEA).
- Currently, 80 per cent of the world’s energy comes from dirty fossil fuels.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: Renewable Energy
Mains level: Distributed Renewable Energy and women , advantages and challenges
Central Idea
- Women from rural India are adopting clean energy-based livelihood technologies to catalyse their businesses. From solar refrigerators to silk-reeling machines and biomass-based cold storage to bulk milk chillers, distributed renewable energy (DRE) is transforming women’s livelihoods at the grassroots.
What is Distributed Renewable Energy (DRE)?
- DRE refers to the generation and distribution of electricity from renewable energy sources, such as solar, wind, hydro, geothermal, and biomass, through small-scale, decentralized systems.
- These systems are often installed in remote or rural areas where it is difficult or expensive to connect to a centralized power grid.
- DRE systems can range from individual rooftop solar panels to small-scale wind turbines, mini-hydro systems, and biomass generators.
- They are typically designed to serve a single household or community, rather than a large urban or industrial center.
- DRE systems are also known as off-grid or mini-grid systems, and they can be standalone or connected to a larger power grid.
Recent Statistics
- More than 80% are women: A recent Council on Energy, Environment and Water (CEEW) study has shown that out of the 13,000 early adopters of clean tech livelihood appliances, more than 80% are women.
- Future projection: By 2030, India is expected to see 30 million women-owned micro, small and medium enterprises (MSMEs) employing around 150 million people. DRE livelihood technologies a $50 billion market opportunity in India alone have the potential to transform rural livelihoods, with women at the core of this transition.
Advantages of DRE systems
- Several advantages: They are more resilient to natural disasters and grid failures, they can reduce energy costs for communities and households, and they can increase energy access in areas that are not served by the main power grid.
- Reduce carbon emissions: Additionally, DRE systems can reduce carbon emissions and help to mitigate the impacts of climate change.
- DRE advantages for women: DRE-powered technologies provide an additional advantage to women farmers and microentrepreneurs by enhancing income opportunities through mechanization. They also free women from several gender-assigned manual activities that are laborious.
Steps to scale up this impact
- Leverage the experience of early women adopters: The technology providers must leverage early users to share their experiences with potential customers, becoming demo champions/sales agents to market these products, based on their first-hand product experience and local credibility.
- For example: Kissan Dharmbir, an energy-efficient food processor manufacturer, engaged Neetu Tandan, an Agra-based micro-entrepreneur using the processor to produce fruit squashes and jams, as a demo champion. Her demonstrations are generating sales leads.
- Organise hyperlocal events and demos: These events also create spaces for women to network, become aware of the product and connect with people who can help them procure, finance and use these machines.
- For example: At an event in Hamirpur, Uttar Pradesh, more than 200 women booked seven appliances on the spot, including solar sewing machines and multi-purpose food processors.
- Enable easy finance to purchase products: Limited avenues to avail financing for these clean technology products remain a bottleneck. Financiers supporting women farmers and microentrepreneurs should consider the technologies themselves as collaterals while easing the loan application process.
- For example: Samunnati Finance, a financier in the agri-value chain, availed an 80% first-loan default guarantee to support six women-led FPOs in Andhra Pradesh that purchased 100-kg solar dryers.
- Support backwards and forward market linkages: Only technology provision is not enough in all cases. Many rural products have larger market potential. Thus, finding and connecting producers to consumption hubs in urban areas are equally important to generate higher incomes.
- Ensure adequate after-sales services buy backs: Technology manufacturers and promoters should also ensure adequate after-sales services and buy-backs. To build financiers’ confidence, evidence on the economic viability of these technologies should be shared and promoters must offer partial default guarantees.
- Enable policy convergence: No private sector entity has the kind of reach and scale government institutions have, so leveraging their reach is imperative to exponentially scale up. Multiple Ministries are working towards promoting livelihoods for women from State rural livelihood missions, horticulture and agriculture departments, Ministry of Micro, Small and Medium Enterprises, to the Ministry of Textiles. They should embrace clean energy solutions to further their respective programmes and outcomes.
- Perception of high risk: The high starting price and newness of DRE appliances can create a perception of high risk, particularly for women users who may have a lower risk appetite due to socio-economic factors.
- Low belief: Due to historical limitations on women’s access to new information, people tend to want to physically touch and see high-tech, high-priced DRE products before believing in their ability and promised benefits.
- Limited network: Women often struggle with established market linkages because of their limited mobility and networks outside their villages.
Conclusion
- Much like it takes a village to raise a child, scaling the impact of clean energy solutions on women’s livelihoods needs a village of policymakers, investors, financiers, technology promoters and other ecosystem enablers. Only then can we truly unlock the potential of rural women and clean technologies simultaneously.
Mains question
Q. What do you understand by Distributed Renewable Energy (DRE)? What is to be done scale up this impact from thousands of women to millions of them?
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: NA
Mains level: Solar energy promotion and export
Central idea: The article states that the Ministry for New and Renewable Energy is working towards increasing the production of solar modules in the country, with the goal of making India a net exporter of solar modules by 2026.
How can India be a net exporter of solar energy?
- Increased manufacturing of PV modules: By 2026, Indian industry will be able to manufacture solar modules worth 100 gigawatts (GW) annually, and help the country be a net exporter of solar power.
- Increased installation capacity: This would significantly aid India’s target of installing 500 GW of electricity capacity from non-fossil sources by 2030.
Issues with solar power sector
Ans. Reduced capacity
- Slow pace: India had planned to install 175 GW of renewable energy by December 2022, including 100 GW of solar power, but has only achieved 122 GW, with solar power accounting for only 62 GW.
- Huge cost: A key bottleneck has been the cost of solar modules (or panels).
- Regressive import duties: While India has traditionally relied on China-made components such as poly-silicon wafers, necessary to make modules, higher customs duty on them has shrunk supply. This was done to make equivalent India-manufactured components more competitive.
Motive behind export promotion
- Surplus generation: India need about 30-40 GW for our domestic purposes annually and the rest can be used for export.
- Manufacturing boost: PLI scheme for polysilicone manufacturing is in place are designed to encourage the manufacturers of ingots and wafers in India.
What obstructs solar power growth in India?
Ans. Land crunch
- Apart from module prices, land acquisition has been a major challenge for solar power manufacturers.
- Despite the Centre commissioning 57 large solar parks worth 40 GW in recent years, only 10 GW have been operationalized.
- Installing a megawatt of solar power requires on average four acres of land. So various developers face challenges in acquiring it and that’s one reason for the delay.
Various initiatives for solar energy in India
- International Solar Alliance (ISA): India, along with France, launched the ISA in 2015, a global platform to promote the use of solar energy.
- Solar Parks: The government has set up Solar Parks to provide land and infrastructure to developers for the installation of solar power projects.
- Rooftop Solar Program: The government has launched a rooftop solar program to promote the installation of solar panels on rooftops of residential and commercial buildings.
- Incentives and subsidies: The government has provided various incentives and subsidies to promote the adoption of solar energy, including tax exemptions, accelerated depreciation, and subsidies for capital costs.
Way forward
India has significant potential to become a major exporter of solar power. Here are some steps that can be taken to promote solar power export by India:
- Increase domestic production: To promote solar power export, India needs to increase domestic production of solar panels and equipment. This can be achieved by providing incentives and subsidies to domestic manufacturers, reducing import duties on raw materials, and investing in research and development.
- Focus on quality: Indian manufacturers need to focus on producing high-quality solar panels and equipment that can compete with products from other countries. The government can establish quality standards and certification programs to ensure that Indian-made products meet international quality standards.
- Develop infrastructure: India needs to develop a robust infrastructure to support the export of solar power, including transportation, storage, and transmission facilities. The government can provide support for the development of this infrastructure, such as funding and regulatory support.
- Partner with other countries: India can partner with other countries to promote the export of solar power. The International Solar Alliance, of which India is a founding member, can play a key role in this regard.
- Expand market access: India needs to expand market access for its solar power products by signing trade agreements with other countries and participating in international exhibitions and events. The government can also provide support for Indian companies to participate in trade fairs and exhibitions abroad.
By implementing these measures, India can promote the export of solar power and become a key player in the global solar energy market.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: NA
Mains level: India- Nordic cooperation for Green transition
Context
- Over the last decades, Nordic countries have been pioneering in green technologies. Over the last decades, Nordic have also been at the forefront of developing new green technologies and solutions such as hydrogen, offshore wind, batteries and carbon capture and storage solutions that are essential for the world to succeed in the green transition it desperately needs. Together, the Nordics and India can deliver key technologies and solutions to stop climate change and boost green growth.
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India- Nordic connect
- Nordic-India Summit: At the Nordic-India Summit held in Copenhagen in May 2022, the five Nordic Prime Ministers and India’s Prime Minister Narendra Modi agreed to intensify cooperation on digitalisation, renewable energy, maritime industries, and the circular economy.
- Joint Nordic solutions for green transition: Modi expressed an interest in joint Nordic solutions that can support India’s green transition.
- Knowledge exchange and cooperation: It is very much with this in mind that, the Trade Ministers of Norway and Finland, are currently visiting India together During their visit, they aim to showcase the added value to the partnership can bring to India and learn from the impressive innovations and digital solutions being developed in India.
- Ambition to increase collaboration: They have business delegations and companies that are leaders within sectors such as clean energy, circular economy, digitalisation, tourism, and the maritime sector. They have great ambitions for increased collaboration with India.
- Nordic business community in India is also growing: The most valued and renowned Nordic businesses are already operating in India and have made substantial investments. There are now 240 Norwegian and Finnish companies in India.
Trade links that can grow
- India a priority country for Finland: The past year has seen a significant rise in trade and investments between Finland and India, and India has grown to become a priority country for Finland.
- For instance: Finland opened a new consulate General in Mumbai. This further increases the number of Nordic representations in India’s commercial capital and will contribute to strengthening India-Finnish ties.
- Trade between Norway and India has doubled in the last three years: Finnish companies such as Nokia and Fortum see India as their largest growth market now and have some of their most significant investments in India. The Norwegian Sovereign Wealth Fund is likely to become one of India’s largest single foreign investors (around $17.6 billion).
- Number of investments is increasing rapidly: The Norwegian government has also recently established a new Climate Investment Fund for investments in renewables abroad, and India has been declined as a focus country. Almost ₹1,500 crore have been invested so far in India through the climate investment fund, and the number of investments is increasing rapidly.
- Finland, as a member of the European Union (EU), is a part of the EU-India FTA negotiations, and Norway is negotiating through the European Free Trade Association.
- Trade in services is an area of significant potential, especially with tourism, education, IT, energy, maritime and financial services.
- As India takes rapid strides into a green, digital, and innovative future, Nordic countries such as Finland and Norway stand ready to share experiences and be a part of India’s transition.
Conclusion
- Although Nordic countries are significantly smaller than India population-wise and a located on the other side of the globe, they have world-leading technologies and expertise to other. Technologies and innovations that are successful and are scaled-up in India can easily be transferred to other parts of the world. Together, the Nordics and India can be the powerhouse of the green transition globally.
Mains question
Q. Over the last decades, Nordic countries have been pioneering in green technologies. Together, the Nordics and India can power the green transition the world needs. Discuss.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: OTEC technology
Mains level: Renewable Energy in India
The National Institute of Ocean Technology is establishing an Ocean Thermal Energy Conversion (OTEC) plant with a capacity of 65 kilowatts (kW) in Kavaratti, the capital of Lakshadweep.
What is OTEC Plant?
- Ocean thermal energy conversion (OTEC) is a process or technology for producing energy by harnessing the temperature differences (thermal gradients) between ocean surface waters and deep ocean waters.
- Energy from the sun heats the surface water of the ocean.
- In tropical regions, surface water can be much warmer than deep water.
- This temperature difference can be used to produce electricity and to desalinate ocean water.
How do they work?
- The OTEC technology uses the temperature difference between the cold water in the deep sea (5°C) and the warm surface seawater (25°C) to generate clean, renewable electricity.
- The technology requires a minimum of 20°C difference between the surface and deep ocean temperatures.
- Warm surface water is pumped through an evaporator containing a working fluid. The vaporized fluid drives a turbine/generator.
- The vaporized fluid is turned back to a liquid in a condenser cooled with cold ocean water pumped from deeper in the ocean.
- OTEC systems using seawater as the working fluid can use the condensed water to produce desalinated water.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: Not much
Mains level: Paper 3- Transition to renewable
Context
As the fallout of Russia’s invasion of Ukraine ripples across the globe, the response of some nations to the growing energy crisis has been to double down on fossil fuels, pouring billions more dollars into the coal, oil and gas that are deepening the climate emergency.
Need for transition to renewable energy
- Fossil fuels are the cause of the climate crisis.
- Renewable energy can limit climate disruption and boost energy security. Renewables are the peace plan of the 21st century.
- But the battle for a rapid and just energy transition is not being fought on a level field.
- Investors are still backing fossil fuels, and governments still hand out billions in subsidies for coal, oil and gas — about $11 million every minute.
- The only true path to energy security, stable power prices, prosperity and a livable planet lies in abandoning polluting fossil fuels and accelerating the renewables-based energy transition.
- We must reduce emissions by 45 per cent by 2030 and reach net-zero emissions by mid-century.
- But current national commitments will lead to an increase of almost 14 per cent this decade.
- Reducing cost: The cost of solar energy and batteries has plummeted 85 per cent over the past decade.
- The cost of wind power fell by 55 per cent. And investment in renewables creates three times more jobs than fossil fuels.
- Nature-based solutions: Of course, renewables are not the only answer to the climate crisis.
- Nature-based solutions, such as reversing deforestation and land degradation, are essential.
- So too are efforts to promote energy efficiency.
- But a rapid renewable energy transition must be our ambition.
Five point plan to boost renewable
- 1] Renewable energy technology as global good: We must make renewable energy technology a global public good, including removing intellectual property barriers to technology transfer.
- 2] Improve global access: We must improve global access to supply chains for renewable energy technologies, components and raw materials.
- In 2020, the world installed five gigawatts of battery storage.
- We need 600 gigawatts of storage capacity by 2030.
- Shipping bottlenecks and supply-chain constraints, as well as higher costs for lithium and other battery metals, are hurting the deployment of such technologies and materials.
- 3] Fast-tracking : We must cut the red tape that holds up solar and wind projects.
- We need fast-track approvals and more effort to modernise electricity grids.
- 4] Shifting energy subsidies: The world must shift energy subsidies from fossil fuels to protect vulnerable people from energy shocks and invest in a just transition to a sustainable future.
- Increase investment in renewables: We need to triple investments in renewables.
- This includes multilateral development banks and development finance institutions, as well as commercial banks.
Conclusion
When energy prices rise, so do the costs of food and all the goods we rely on. So, let us all agree that a rapid renewables revolution is necessary and stop fiddling while our future burns.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: Grey hydrogen and green hydrogen
Mains level: Paper 3- Green hydrogen
Context
The ongoing tensions between Russia and Ukraine have led to the prices of crude oil shooting to $130/barrel. Green hydrogen is an emerging option that will help reduce India’s vulnerability to such price shocks.
Four deficiencies in Renewable Energy Technologies
- 1] Intermittent nature of RE: RE can only be generated intermittently.
- Battery technology cannot store electricity at a grid scale.
- 2] Financial viability: There are question marks on the financial viability of green power.
- In India, renewable electricity is a replacement for coal-based power, the cheapest form of energy.
- That’s a big constraint on its viability.
- Moreover, the customers of this power – the state distribution companies – are collectively insolvent.
- A business cannot prosper if its primary customers are not financially viable.
- 3] Batteries are not suitable for heavy trucks: While electric cars and two-wheelers get a lot of visibility, much of India’s oil is burnt in heavy trucks.
- Lithium batteries are not viable for trucks.
- 4] Critical minerals: Electric vehicles require large quantities of lithium and cobalt that India lacks.
- These minerals also have very concentrated supply chains that are vulnerable to disruptions.
- Large-scale investments in electric vehicles may create unsustainable dependencies for the country.
Is green hydrogen a solution?
- Intermittent hydrogen in the energy mix can help circumvent some of these problems.
- Hydrogen is an important industrial gas and is used on a large scale in petroleum refining, steel, and fertiliser production.
- As of now, the hydrogen used in these industries is grey hydrogen, produced from natural gas.
- Green hydrogen produced using renewable energy can be blended with grey hydrogen.
- This will allow the creation of a substantial green hydrogen production capacity, without the risk that it may become a stranded asset.
- Creating this hydrogen capacity will provide experience in handling the gas at a large scale and the challenges involved.
- Blending with CNG: To widen the use of green hydrogen, it can be blended with compressed natural gas (CNG), widely used as a fuel for vehicles in Delhi, Mumbai and some other cities.
- This will partly offset the need for imported natural gas and also help flag off the challenges of creating and distributing hydrogen at a national level.
- By bringing down the price of green hydrogen sufficiently, India can help unlock some stranded assets.
- The country has close to 25,000 megawatts of gas-fired power generation capacity that operates at a very low-capacity utilisation level. The high price of natural gas reduces the viability of such electricity.
- These plants could use hydrogen blended with natural gas. Hydrogen should, however, be used to generate electricity after it has served its utility in other avenue.
Way forward
- To catalyse a hydrogen economy, India needs some specialist players to execute projects as well as finance them.
- Participation of private players: Apart from government-backed players, the hydrogen economy will need private sector participation.
- India’s start-up sector, with over 75 unicorns, is perhaps the most vibrant part of the country’s economy currently.
- This ecosystem has been enabled by a mix of factors, including the presence of entrepreneurs with ideas and investors who are willing to back up these ideas
- Creation of refueling network: One challenge of using new transport fuels, whether CNG or electric vehicles, is the creation of large-scale refuelling networks.
- Bringing hydrogen vehicles on the road too soon will require the creation of yet another set of infrastructure.
- Building fleets of hydrogen-fueled vehicles for gated infrastructure can be a good starting point.
- Airports, ports and warehouses, for instance, use a large number of vehicles such as forklifts, cranes, trucks, tractors and passenger vehicles.
Conclusion
The government’s Green Hydrogen Policy sends the right signals about its intent. It now needs to ensure that investment can freely come into this space.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: COP26
Mains level: Paper 3- Power generation tariff issue
Context
We need to shift to a two-part tariff for solar and wind to incentivise private investments.
Background of power generation tariff in India
- The two-part tariff has been in vogue since 1992.
- It applies to thermal and hydro generation.
- 1] Fixed component: The first part is a fixed component – the cost that a generator incurs.
- This is not linked to the amount of power generated.
- 2] Variable component: The second part varies with the quantum of generation.
- It does not apply to renewable generation — solar, wind, and also nuclear.
- Under the two-part formula, the variable cost is calculated on the basis prescribed by the regulatory commissions.
- This is based on the cost of fuel — coal or gas or lignite — as the case may be.
- The fixed cost is also determined by regulatory commissions and it has a graded payment system depending on the extent to which the plant would be in a position to generate.
- The point here is that when a generator is in a position to generate, it gets to recover the fixed cost (or some part of it), irrespective of whether it actually generates power.
Single-part tariff for nuclear, wind and solar
- In contrast, solar and wind generation and also nuclear are still governed by a single-part tariff.
- The single-part tariff applies to nuclear power stations for various reasons including the fact that given the technology, a nuclear generator does not usually increase/decrease the generation at a quick tempo, but maintains a steady stream.
- In any case, nuclear power accounts for only about two per cent of the entire generation, so let’s leave it aside.
- On the other hand, solar and wind generation account for about 10 per cent of the generation today and going by the statement delivered during COP26 in Glasgow, we want to ramp it up to 50 per cent by 2030.
Issues with single-part tariff for wind
- Must run status: The renewable sector has been given a “must run” status.
- This means that any generation from renewables needs to be dispatched first.
- The problem is that “must run” runs counter to the basic economic theory that in order to minimise total cost, dispatch should commence from the source offering the cheapest variable cost and then move upwards.
- With a single-part tariff, whenever the renewable generator is asked to back down for maintaining grid balance, it is paid nothing.
- With a single part tariff for renewable generation, the entire cost is variable and at Rs 2.5 per unit for solar generation, it is not the cheapest source.
- There are several NTPC coal-fired pit head plants whose variable costs are far lower, for example, Simhadri (Rs 1.36), Korba (Rs 1.36), Sipat (Rs 1.43).
- For the older solar plants, the tariff could be well above Rs 3 per unit and for wind-based generation, it is even higher, averaging around Rs 4.5 per unit.
- Therefore, the SLDCs often flout the principle of “must run”, since the distribution companies would save money by asking the renewable generator to back down while keeping the tap on for a coal-based generation.
Solution
- Two-part tariff for solar: The solution to this problem is to apply a two-part tariff for solar and wind generators as we do for hydro plants today.
- Lowest variable cost: The overriding principle is that the percentage allocated as variable cost should ensure that renewable generation has the lowest variable cost so that there is no violation of the “must-run” principle.
- At the same time, the fixed cost component should not be kept so high that it hurts the consumers.
- A fine balance between the proportion of the fixed and variable costs will have to be maintained.
- It would also ensure a certain minimum return to developers even if they are not generating during certain hours, as in the case of coal and hydro plants.
- Proper environment: If we are serious about having a renewable generating capacity of 450-500 GW by 2030, we need to create a proper environment and ensure adequate returns to invite fresh investments into renewable generation.
Conclusion
The switch from a single to a two-part tariff structure for renewables has to be made right now as we are at the cusp of ramping up our renewable generation and it takes time for matters to get streamlined as we have seen in the past.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: REC, RPO
Mains level: Renewable Energy in India
Telangana CM in harsh words has criticized the Prime Minister over Renewable Purchase Obligations (RPO).
Why such a gesture by Telangana CM?
- Telangana has been particularly vocal about the “increasing burden” forced upon states by the Centre on account of the clean energy cess imposed on coal and the RPOs (Renewable Purchase Obligation).
What are RPOs?
- Renewable Energy Certificates (REC) is a policy instrument to catalyze the development of renewable energy.
- It is a market-based mechanism that will help the states meet their regulatory requirements (such as RPOs) by overcoming the geographical constraints on existing renewable potential in different states.
- Under RPO, power distribution companies purchase a certain percentage of their requirements from renewable energy sources.
REC Mechanism
- REC mechanism is a market-based instrument to promote renewable energy and facilitate compliance of renewable purchase obligations (RPO).
- It is aimed at addressing the mismatch between availability of RE resources in state and the requirement of the obligated entities to meet the RPO.
- 1 REC is treated as equivalent to 1 MWh.
How many types of RECs are there?
There are two categories of RECs, viz., solar RECs and non-solar RECs.
- Solar RECs are issued to eligible entities for the generation of electricity based on solar as a renewable energy source.
- Non-solar RECs are issued to eligible entities for the generation of electricity based on renewable energy sources other than solar.
Issues highlighted by Telangana
- Mandatory purchase: The CM has raised the issue of mandatory purchase of renewables reducing the Plant Load Factor (PLF) for existing thermal power projects.
- Only solar RPO: The CM questioned the mandate to procure a certain percentage of power from solar energy noting that Telangana had hydropower projects producing over 2,500 MW of power from rivers.
- Not all states have ample renewables: States have thus far not been able to meet RPO targets, with over a dozen states and UTs achieving less than 60% of RPOs.
- Penalty for non-compliance: There is a (small) penalty for not meeting RPO obligations. The Centre has proposed to increase penalties on states for non-compliance with RPOs in the draft electricity amendment bill.
Clarification from the centre
- States were free to hold their own bids and buy green energy from any developer instead of procuring power based on bids by the SECI.
- They can choose to have their own bids.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: Not much
Mains level: Paper 3- Issues with rapid transition to green energy
Context
Europe’s push for renewable energy at the cost of conventional fuel may end up causing a global food crisis.
Consequences of fuel shortage in Western Europe
- Since August 2021, Western Europe has faced a problem with renewable energy – the wind doesn’t always blow when needed and the sun doesn’t always shine.
- Commodity markets across the world operate on a balance of demand and supply — even seemingly “small” changes in either side of a few percentage points can push the prices up or down sharply.
- High energy bills: Higher gas prices have pushed up energy bills for households and are expected to impact household spending and consumption as well.
- High urea prices: Natural gas is used to produce urea – if gas prices go up, fertiliser also becomes expensive.
- Some poor and middle-income countries are already starting to face problems of fertiliser availability — there are reports from several Indian states as well.
- High food prices: The impact of expensive fertiliser will be felt some months down the line as expensive fertiliser and reduced harvests push up food prices.
- India is relatively less affected as the share of natural gas in the country’s energy mix is low but will still face problems due to high food prices.
- In 2007-08, when oil prices were high, there was a push to use “biofuels” led by the US and Europe.
- The effects of the 2008 food price crisis were felt around the world, especially by the poor.
Lessons for India
- Cheap and reliable energy sources should not be abandoned until the alternatives have been stringently stress tested.
- India will be especially hard hit if oil prices spike as it imports close to 1.4 billion barrels of oil annually.
Consider the question “What are the inherent dangers in rapid transition to the green energy? Suggest the way forward for India.”
Conclusion
A blind push to shut down traditional sources of energy and move to less reliable “clean” energy can have second and third order effects.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: Not much
Mains level: Paper 3- Challenges in transition to clean energy
Context
Political leaders find themselves currently amid a messy reality. The seemingly “irresistible force” for clean energy has met, it would appear, the “immovable object” of an embedded fossil fuel energy system.
Changes in the energy sector in 2021
- Commitment to Net-zero: One hundred and thirty-three countries pledged to a “net-zero carbon emissions date” and most governments, corporates and civic entities have shown determination to “phase down” and eventually phase out fossil fuels from their energy basket.
- Price volatility: The petroleum market seesawed and was expectedly volatile.
- High price: Natural gas prices reached stratospheric levels as demand exceeded supplies and geopolitics compounded the imbalance.
Five trends that will shape the emergent energy landscape
[1] Transition to clean energy will be long and expensive
- Redesign and rebuilding: The fossil fuel-based economic system will have to be redesigned and, in parts, rebuilt for clean energy to achieve scale.
- The process will take decades and require massive capital infusion.
- No country or multilateral institution can finance this transition individually.
- The world needs to collaborate: The world will have to collaborate and if it fails to do so, the financing deficit will push back the transition even further.
[2] Fossil fuels will dominate the energy basket during the transition
- Fossil fuels will dominate the energy basket during this transition phase.
- Contributing factors: As has been the case so far, its market will be defined by the “fundamentals” of demand, supply and geopolitics and the “non-fundamentals” of exchange rates and speculative trade.
- The price movements will be sharp, volatile and unexpected.
[3] The resurgence of market influence of OPEC plus after private companies move beyond fossil fuel
- The “ OPEC plus” will resurge in market influence.
- The low-cost, high resource petrostates (Saudi Arabia, the Gulf nations, Iraq, Iran, Russia) will, in particular, gain greater control over the petroleum market as private companies move beyond fossils under pressure from shareholders and regulators.
[4] Transition will create new centres of energy power
- The Democratic Republic of Congo controls, more than 50 per cent of the global supply of cobalt; Australia holds a comparably large share of the lithium market; and China controls the mining, processing and refining of rare earth minerals.
- It is difficult to tell how and when these countries will exercise their market power but it is clear that the “green transition” will create new centres of energy power.
[5] Nationalism and political opportunism will influence energy policy
- The US and China are currently embroiled in a “Cold War” over technology, trade, cyber issues and the South China Sea.
- The US and China appear to be in a similar face-off. But that has not come in the way of their energy relations.
- A few weeks ago, the two countries decided to coordinate the release of oil stocks from their strategic reserves to cool off the oil market.
- The underlying reality is that national self-interest and short-term political ambition will be the defining determinant of future energy supply relations cutting across values and rhetoric.
Suggestions for India
- Nurture relations with traditional suppliers: India must assiduously nurture relations with our traditional suppliers of oil and gas.
- It must not assume their role in the energy market will diminish.
- Increase storage capacity of strategic reserves: It should accelerate the build-up of the storage capacity for oil and gas; the latter to hold strategic oil reserves, the former to store gas for inter alia conversion to blue hydrogen.
- Ecosystem for search and development of minerals required for clean energy: It must create a facilitative ecosystem for the search and development of the minerals and metals required for clean energy.
- Clean energy supply chain: It should create a “clean energy aatmanirbhar supply chain”.
Conclusion
The green transition must not lead to import dependency on raw minerals and manufactured inputs, especially from China. The current policy to incentivise the manufacture of semiconductors is a step in the right direction.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: Langtang Microhydro Electricity Project
Mains level: NA
Langtang Microhydro Electricity Project, Nepal’s first hydropower from a glacial lake has become functional recently.
Langtang Microhydro Electricity Project
- The Project was built three years after the 2015 earthquake-avalanche that devastated the valley, with help from the Hong Kong-based Kadoorie Charitable Foundation.
- It has a weir and spillway at the moraine, and the water is taken through a fibre glass-insulated penstock pipe to a powerhouse that generates 100kW of electricity.
- It seeks to provide 24 hours of electricity to 120 households and tourist lodges in Kyanjin and Langtang.
Uniqueness of the project
- The project is the first-of-its-kind in Nepal to power a village and holds promise for other remote Himalayan valleys where the risk posed by expanding glacial lakes can be mitigated.
- At the same time, it provides electricity to tourism-dependent families.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: RE Country Attractiveness Index (RECAI)
Mains level: Renewable Energy in India
India has retained the third rank in the Renewable Energy Country Attractiveness Index released by consultancy firm EY.
RE Country Attractiveness Index (RECAI)
- The RECAI ranks the world’s top 40 markets on the attractiveness of their renewable energy investment and deployment opportunities.
- The rankings reflect assessments of market attractiveness and global market trends.
India’s performance
- India remained at the third position since three consecutive years.
- India’s thriving renewable energy market conditions, inclusive policy decisions, investment and technology improvements focusing on self-reliant supply chains have pushed the transition.
- RECAI highlights that corporate power purchase agreements (PPAs) are emerging as a key driver of clean energy growth.
- A new PPA Index – introduced in this edition of RECAI – focuses on the attractiveness of renewable power procurement and ranks the growth potential of a nation’s corporate PPA market.
- India is ranked sixth among the top 30 PPA markets.
Global scenario
- The US, mainland China and India continue to retain the top three rankings and Indonesia is a new entrant to the RECAI.
- The top-performing markets have held their ground in this latest issue – with no movement into or out of the top eight.
- France (fourth position, up by one) and the UK (fifth position, down by one), while Germany (sixth position, up by one) has edged back ahead of Australia (seventh position, down by one).
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: REC Mechanism
Mains level: Renewable Energy in India
Union Minister of Power and New & Renewable Energy has given his assent to amendments in the existing Renewable Energy Certificate (REC) mechanism.
What are RECs?
- Renewable Energy Certificates (REC) is a policy instrument to catalyze the development of renewable energy.
- It is a market-based mechanism that will help the states meet their regulatory requirements (such as Renewable Purchase Obligations (RPOs)) by overcoming the geographical constraints on existing renewable potential in different states.
REC Mechanism
- REC mechanism is a market-based instrument to promote renewable energy and facilitate compliance of renewable purchase obligations (RPO).
- It is aimed at addressing the mismatch between availability of RE resources in state and the requirement of the obligated entities to meet the RPO.
- 1 REC is treated as equivalent to 1 MWh.
How many types of RECs are there?
There are two categories of RECs, viz., solar RECs and non-solar RECs.
- Solar RECs are issued to eligible entities for generation of electricity based on solar as renewable energy source.
- Non-solar RECs are issued to eligible entities for generation of electricity based on renewable energy sources other than solar.
Sources of revenue under REC mechanism
- Revenue for a RE generator under REC scheme includes revenue from the sale of electricity component of RE generation and the revenue from the sale of environmental attributes in the form of RECs.
What are the proposed changes?
The salient features of changes proposed in revamped REC mechanism are:
- Validity of REC would be perpetual i.e., till it is sold.
- Floor and forbearance prices are not required to be specified.
- The RE generator who are eligible for REC, will be eligible for issuance of RECs for the period of PPA as per the prevailing guidelines.
- The existing RE projects that are eligible for REC would continue to get RECs for 25 years.
- A technology multiplier can be introduced for promotion of new and high priced RE technologies, which can be allocated in various baskets specific to technologies depending on maturity.
- RECs can be issued to obligated entities (including DISCOMs and open access consumers) which purchase RE Power beyond their RPO compliance notified by the Central Government.
- No REC to be issued to the beneficiary of subsidies/concessions or waiver of any other charges.
- Allowing traders and bilateral transactions in REC mechanism.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: International Hydropower Association (IHA), Teesta River
Mains level: NA
NHPC’s 510 MW Teesta-V Power Station located in the Himalayan State of Sikkim has been conferred with the prestigious Blue Planet Prize by International Hydropower Association (IHA).
Teesta-V Power Station
- The power station has been built, owned and being operated by NHPC.
- The award has been conferred for its sustainability assessment undertaken by Hydropower Sustainability Assessment Protocol (HSAP) of IHA.
About IHA
- IHA is a London based non-profit membership association operating in 120 countries.
- The IHA membership includes leading hydropower owners and operators, developers, designers, suppliers and consultants.
- The IHA Blue Planet Prize is awarded to hydropower projects that demonstrate excellence in sustainable development.
- The Hydropower Sustainability Assessment Protocol (HSAP) is the leading international tool for measuring the sustainability of hydropower projects.
- It offers a way to benchmark the performance of a hydropower project against a comprehensive range of environmental, social, technical and governance criteria.
Back2Basics: Teesta River
- Teesta River is a 414 km long river that rises in the Pauhunri Mountain of eastern Himalayas, flows through the Indian states of Sikkim and West Bengal through Bangladesh and enters the Bay of Bengal.
- It drains an area of 12,540 sq km.
- In India, it flows through North Sikkim, East Sikkim, Pakyong District, Kalimpong district, Darjeeling District, Jalpaiguri District, Cooch Behar districts and the cities of Rangpo, Jalpaiguri and Mekhliganj.
- It joins River Brahmaputra at Fulchhari in Bangladesh. 315 km portion of the river lies in India and rest in Bangladesh.
- Teesta is the largest river of Sikkim and the second largest river of West Bengal after Ganges.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: Pink hydrogen
Mains level: Paper 3- Green hydrogen
Context
The forthcoming 26th UN Climate Change Conference of the Parties (COP26) in Glasgow from November 1-12, 2021 is to re-examine the coordinated action plans to mitigate greenhouse gases and climate adaptation measures.
How Green hydrogen as a fuel can be a game changer?
- Hydrogen is the most abundant element on the planet, but rarely in its pure form which is how we need it.
- High energy density: It has an energy density almost three times that of diesel.
- ‘Green hydrogen’, the emerging novel concept, is a zero-carbon fuel made by electrolysis using renewable power from wind and solar to split water into hydrogen and oxygen.
- Best solution to remain under 1.5° C: The International Energy Agency (IEA) forecasts the additional power demand to be to the tune of 25%-30% by the year 2040.
- Thus, power generation by ‘net-zero’ emission will be the best solution to achieve the target of expert guidelines on global warming to remain under 1.5° C.
- Untapped potential: Presently, less than 0.1% or say ~75 million tons/year of hydrogen capable of generating ~284GW of power, is produced.
Challenges: Production and storage cost
- The challenge is to compress or liquefy the LH2 (liquid hydrogen); it needs to be kept at a stable minus 253° C.
- This leads to its ‘prior to use exorbitant cost’.
- The ‘production cost’ of ‘Green hydrogen’ has been considered to be a prime obstacle.
- The production cost of this ‘green source of energy’ is expected to be around $1.5 per kilogram (for nations having perpetual sunshine and vast unused land), by the year 2030; by adopting various conservative measures.
Experiments in India
-
- The Indian Railways have announced the country’s first experiment of a hydrogen-fuel cell technology-based train by retrofitting an existing diesel engine; this will run under Northern Railway on the 89 km stretch between Sonepat and Jind.
- The project will not only ensure diesel savings to the tune of several lakhs annually but will also prevent the emission of 0.72 kilo tons of particulate matter and 11.12-kilo tons of carbon per annum.
Way forward for India
- India is the world’s fourth-largest energy-consuming country (behind China, the United States and the European Union), according to the IEA’s forecast, and will overtake the European Union to become the world’s third energy consumer by the year 2030.
- It is high time to catch up with the rest of the world by going in for clean energy, decarbonising the economy and adopting ‘Green hydrogen’ as an environment-friendly and safe fuel for the next generations.
Conclusion
In order to achieve the goal of an alternative source of energy, adopting a multi-faceted practical approach to utilise ‘Green hydrogen’ offers a ray of hope.
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Note4Students
From UPSC perspective, the following things are important:
Prelims level: India's largest solar PV Project
Mains level: Renewable Energy in India
The National Thermal Power Corporation (NTPC) has commissioned the largest floating solar PV project of 25MW on the reservoir of its Simhadri thermal station in Visakhapatnam, Andhra Pradesh.
Simhadri PV Project
- The 2000MW coal-based Simhadri Station is the first power project to implement an open sea intake from the Bay of Bengal which has been functional for more than 20 years.
- This is the first solar project to be set up under the flexibilization scheme of coal-powered plant, notified in 2018.
- The floating solar installation which has a unique anchoring design is spread over 75 acres in an RW reservoir.
- This floating solar project has the potential to generate electricity from more than 1 lakh solar PV modules.
- This would not only help to light around 7,000 households but also ensure at least 46,000 tons of CO2e are kept at arm’s length every year during the lifespan of this project.
- The project is also expected to save 1,364 million litres of water per annum. This would be adequate to meet the yearly water requirements of 6,700 households.
Other important facts you must know
- As of May 2021, India has 95.7 GW of renewable energy capacity, and represents ~ 25% of the overall installed power capacity.
- The government plans to establish renewable energy capacity of 523 GW (including 73 GW from Hydro) by 2030.
- India was the world’s 3rd largest renewable energy producer with 38% (136 GW out of 373 GW) of total installed energy capacity in 2020 from renewable sources.
- Tamil Nadu has the highest installed solar power capacity in India. Kamuthi Solar Power Project near Madurai is the world’s second-largest solar park.
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Back2Basics: NTPC
- NTPC is an Indian statutory corporation engaged in the generation of electricity and allied activities.
- It is incorporated under the Companies Act 1956 and is under the jurisdiction of the Ministry of Power.
- NTPC’s core function is the generation and distribution of electricity to State Electricity Boards in India.
- It is the largest power company in India with an electric power generating capacity of 62,086 MW.
- It has also ventured into oil and gas exploration and coal mining activities.
- In May 2010, NTPC was conferred Maharatna status by GoI, one of the only four companies to be awarded this status.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: IEA
Mains level: Paper 3- Ensuring smooth energy transition in India
Context
With an ever-growing list of countries announcing net-zero emissions targets, the global energy system is set to undergo a transformation in the coming decades. But India needs to ensure that this transition is smooth and people-centric.
Transition in India
- According to an IEA analysis, 90 per cent of new electricity generation capacity around the world now comes from renewables.
- In India, that energy transformation is well underway.
- India is among the world’s top five countries in terms of renewable power capacity.
- Ambitious target of 450 gigawatts: Its ambitious target to increase India’s renewable energy capacity to 450 gigawatts (GW) by 2030 would help move it closer to achieving the country’s broader climate goals and commitments made under the Paris Agreement.
- Clean energy leadership by India: India is also showing global clean energy leadership through initiatives such as the International Solar Alliance, which has more than 70 member countries.
- Transition in rural area: The energy transition in rural India can be driven by dedicated policies to promote renewables, incentivise investment in decentralised low-carbon power sources like rooftop solar, and train and build the capacity of clean energy entrepreneurs.
- Incorporating energy efficiency in the Affordable Housing Mission: In the short term, stimulus spending in the labour-intensive construction sector could accelerate progress on the Affordable Housing Mission.
- Incorporating energy efficiency and green construction methods into these projects could ensure millions of homes enjoy thermal comfort, and help make energy efficiency a core part of building designs.
Factors to consider in transition to clean energy
- Ensure equity: It must be ensured that the opportunities of India’s transition are shared fairly throughout society — and workers and communities are not left to face the challenges alone.
- Make it people-centric: To achieve the trifecta of jobs, growth and sustainability, India must strive to put people at the centre of its energy transformation.
- Provisions for coal-dependent regions: New jobs would need to be found over time for the coal miners affected by the changes, as well as for people who work in the fossil fuel power plants that will close down.
- Policymakers must earmark special “transition funds” to help coal-dependent regions, some of which are among India’s poorest.
- Increase investment by rationalising energy subsidies: Energy subsidies must be rationalised and directed towards those who need them most.
- Fiscal resources freed up through subsidy reform should then be invested in clean energy solutions, especially in underdeveloped regions and marginalised communities.
- Support rural livelihood: A just transition should focus on how clean energy can support rural livelihoods and increase communities’ resilience in the aftermath of the pandemic shock.
- Ensure women’s participation in the green workforce: While India’s energy transition will create many new jobs, the limited participation of women in the growing green workforce must be addressed.
- A 2019 study by CEEW and the IEA suggests that women account for nearly 32 per cent of the renewables workforce globally but only around 11 per cent of the rooftop solar workforce in India.
- Engage youth: Engaging the youth is critical to ensure that the energy transition is sustainable, inclusive and enduring.
- Young entrepreneurs in India have already shown their impact by expanding the footprint of renewables and disrupting traditional energy models.
- Some of these key themes are being explored by the 30 members of the Global Commission on People-Centred Clean Energy Transitions, which the IEA launched in January.
Conclusion
A people-centric approach, backed by good policy design, will not only help India build a clean and inclusive energy future, but could also provide a model for other countries and communities worldwide.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Solar Rooftop
Mains level: Renewable Energy in India
The Union government’s target of producing 40 gigawatts of rooftop solar power by 2022 is unrealistic: The country could produce only 4.4 GW rooftop solar energy till March 31, 2021, according to the Union Ministry of New and Renewable Energy.
What is Solar Rooftop?
- A solar photovoltaic (PV) system mounted on a rooftop of a building is a mini-power requirement or feed into the grid.
- The size of the installation varies significantly depending on the availability of space, amount of electricity consumed by the property and the ability or willingness of the owner to invest the capital required.
Why rooftop?
- Rooftop solar with a storage system is a benefit for both, end consumers as well as discoms (power distribution companies).
- A one-kilowatt (kW) rooftop system can produce three to five units of electricity a day.
- The combination increasingly becomes cost-effective for electricity generation compared to the traditional grid supply and diesel generators.
- In 2021, solar and storage will be cheaper than grid supply for most commercial and industrial (C&I) customers.
- The increase in penetration of rooftop solar in the distribution grid will have a significant impact on the stability of the grid.
A viable alternative
- Most housing societies in urban India rely on diesel generators for power backup. However, as power availability improves in the country, diesel generators will become redundant.
- The operational cost of diesel generators is quite high— R16-18 per unit against Rs 5-6 a unit for solar rooftop systems. So rooftop solar power makes financial sense.Solar rooftop is also a perfect solution for commercial and institutional buildings that operate mostly during the day.
- Their rooftops can be utilized to generate electricity, and they can, partially or completely, replace diesel generators. This would also help them reduce their electricity bills.
Question of energy storage
- In order to integrate rooftop solar and electric vehicles, the grid needs to be flexible and smart.
- Energy storage systems will play a key role in providing this flexibility by acting as a load when there is a surplus generation, as well as generating sources when there is a supply shortage.
- There are two major methods of integrating battery storage into the electric grid:
- Front-of-the-meter (FTM): It is implemented at the utility-scale, wherein the battery system is connected to the transmission or distribution network that ensures grid reliability. This happens on a considerably large scale (~MWh scale).
- Behind-the-meter (BTM): The other method is implemented at the residential and commercial/industrial level, mainly to provide backup during a power failure or to store excess locally generated energy from solar rooftop photovoltaic (PV) systems.
India’s storage capacity
- About 34 GW / 136 GWh of battery storage is expected to be installed by 2030, according to the Central Electricity Authority of India.
- This capacity would be used for RE integration, demand-side and peak load management services.
Storage challenges
- The solar segment offers a huge market opportunity for advanced battery technologies.
- However, manufacturers have some ground to cover in addressing technical limitations of batteries, such as charging characteristics, thermal performance and requirement of boost current to charge deep cycle batteries.
- Since solar companies may directly procure batteries from manufacturers and require after-sale services and technical support, battery companies should have wider a presence to address these expectations.
Other key challenges
- Rooftop solar source doesn’t match the rise in renewable energy in India.
- While industrial and commercial consumers account for 70% of total installed capacity residential consumers remain a big untapped potential to give the boost
- Solar rooftops also face several challenges such as little consumer awareness, lack of innovative government policies or attention, bureaucratic hassles, and limited support from discoms.
Way forward
- Supportive policies and innovative technological approaches are needed for the sector to achieve its potential.
- Indian policymakers need to plan for rooftop solar plus storage, rather than rooftop solar alone with the grid as storage (net / gross metering).
- The declining cost of storage solutions, along with that of rooftop solar solutions, is likely to change the future of the Indian power sector.
- Several countries such as Australia, the United States, Germany, among others have already endorsed solar power with battery storage.
- Energy storage, therefore, represents a huge economic opportunity for India.
- The creation of a conducive battery manufacturing ecosystem on a fast track could cement India’s opportunity for radical economic and industrial transformation in a critical and fast-growing global market.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Green Hydrogen, BRICS
Mains level: NA
India is all set to host a two-day summit on Green Hydrogen initiatives involving the BRICS nations.
What is Green Hydrogen?
- Hydrogen, when produced by electrolysis using renewable energy is known as Green Hydrogen which has no carbon footprint.
- This gives hydrogen the edge over other fuels to unlock various avenues of green usage.
- However, challenges lie in terms of technology, efficiency, financial viability, and scaling up which the summit will aim to address.
Answer this PYQ in the comment box:
Q.With reference to ‘fuel cells’ in which hydrogen-rich fuel and oxygen are used to generate electricity, consider the following statements:
- If pure hydrogen is used as a fuel, the fuel cell emits heat and water as by products.
- Fuel cells can be used for powering buildings and not for small devices like laptop computers.
- Fuel cells produce electricity in the form of Alternating Current (AC).
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Applications of green hydrogen
- Green hydrogen has innumerable applications.
- Green Chemicals like ammonia and methanol can directly be utilized in existing applications like fertilizers, mobility, power, chemicals, shipping among others.
- Green Hydrogen blending up to 10 percent may be adopted in CGD networks to gain widespread acceptance.
- Further scaling up with greening of hard to abate sectors like steel and cement through hydrogen is to be explored.
- Many countries have brought out their strategies and defined targets and roadmaps based on their resources and strengths.
Back2Basics: BRICS Countries
- BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China and South Africa.
- To be clear, BRICS was not invented by any of its members.
- In 2001, Goldman Sachs’ Jim O’Neill authored a paper called “Building Better Global Economic BRICs”, pointing out that future GDP growth in the world would come from China, India, Russia and Brazil.
- Significantly, the paper didn’t recommend a separate grouping for them, but made the case that the G-7 grouping, made up of the world’s most industrialized, and essentially Western countries, should include them.
- O’Neill also suggested that the G-7 group needed revamping after the introduction of a common currency for Europe, the euro, in 1999.
- In 2003, Goldman Sachs wrote another paper, “Dreaming with BRICs: Path to 2050”, predicting that the global map would significantly change due to these four emerging economies.
- In 2006, leaders of the BRIC countries met on the margins of a G-8 (now called G-7) summit in St. Petersburg, Russia, and BRIC was formalized that year.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Kinnaur Hydroelectric Project
Mains level: Hydel energy and its feasiblity
The people of Kinnaur, Himachal Pradesh have been protesting against the proposed 804-megawatt Jangi Thopan Powari hydroelectricity project (JTP HEP) over the Satluj since April 2021.
Kinnaur Hydroelectric Project
- The run-of-the-river (ROR) project envisages the construction of a concrete gravity dam of ±88 metres high above the deepest foundation level across river Satluj near Jangi village.
- The diversion of water will involve the construction of a 12-km-long tunnel.
- The tentative land requirement for the project is 295.93 hectares, out of which 270.43 ha is forest land and 25.5 ha is private.
- Construction of the dam will result in the submergence of about 156.2917 ha of land, out of which 143.2093 ha is forest land and 13.0824 ha is private.
Answer this PYQ in the comment box:
Q.What is common to the places known as Aliyar, Isapur and Kangsabati? (CSP 2017)
(a) Recently discovered uranium deposits
(b) Tropical rain forests
(c) Underground cave systems
(d) Water reservoirs
Why are people protesting?
- Kinnaur district is mainly marked by its cold desert, tribal population, fragile topography, rich and diverse culture, apple orchards, off-season vegetables and the Satluj river.
- The river has been dammed at multiple places along the valley to create an additional feature to Kinnaur’s identity as Himachal’s hydropower hub, which locals believe is a malediction.
- An integral part of the old Hindustan-Tibetan Route, Jangram Valley, lies on the right bank of the Satluj river in the district.
- This is not the first time that the cold desert has witnessed such a contestation.
Sutlej is oveloaded
- The Satluj has taken the biggest load of state hydropower ambition since the early 90s. Out of the total installed capacity, 56 per cent (5720MW) is done in the Satluj basin.
- According to the State of the Rivers of Himachal Pradesh Report 2017:
- In other words, 92 per cent of the river will either be flowing through tunnels or will be part of reservoirs.
- Such a cumulative scale of disturbance with the river’s natural state drastically impacted the life, livelihood and ecology in the Satluj basin.
Why need hydroelectric projects?
- Hydropower is a necessary choice for the nation’s clean energy transition.
- In purely technological terms, hydropower projects are an engineering marvel and generate clean, reliable electricity.
- HEPs are not viable just from the local livelihood and environmental point of view but they have also failed on the financial viability side.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Not much
Mains level: Paper 3- Slowing innovation in clean energy
Major findings of the report
- It is a joint report titled “Patents and the energy transition” released by the European Patent Office and the International Energy Agency.
- The average annual growth rate of patents for low carbon emissions technologies has fallen to 3.3 percent since 2017, the rate was 12.5 percent in the period 2000-2013.
- The report found that around 35 percent of the cumulative CO2 emissions reductions needed to shift to a sustainable path to reach net-zero emissions by 2070 are still currently at the prototype or demonstration phase.
- The report found that energy efficiency and fuel-switching technologies remained at the top of patent activities, accounting for about 60 percent of the total.
Shifting trend withing renewable
- Patent activity in renewable energy technologies such as wind and solar has been in decline for nearly a decade however, and represented just 17 percent of the total in 2019, report found.
- The key driver of patent growth since 2017 has been innovation in cross-cutting technologies such as batteries, hydrogen and smart grids, along with carbon-capture, utilisation and storage.
Source:
https://energy.economictimes.indiatimes.com/news/renewable/clean-energy-innovation-slowing-report-warns/82270391
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Green hydroge
Mains level: Paper 2- Scaling up green hydrogen manufacturing capacity in India
Green hydrogen could help significantly in India’s transition to low carbon future. However, there are several challenges in ramping up its manufacturing. The article suggests measures to deal with these challenges.
Increasing the production of green hydrogen
- India will soon join 15 other countries in the hydrogen club as it prepares to launch the National Hydrogen Energy Mission (NHEM).
- India will soon join 15 other countries in the hydrogen club as it prepares to launch the National Hydrogen Energy Mission (NHEM).
- In 2030, according to an analysis by the Council on Energy, Environment and Water (CEEW), green hydrogen demand could be up to 1 million tonnes in India across application in sectors such as ammonia, steel, methanol, transport and energy storage.
Dealing with challenges
Several challenges in scaling up to commercial-scale operations persist. Following are five recommendations.
1) Decentralise green hydrogen production
- Decentralised hydrogen production must be promoted through open access of renewable power to an electrolyser (which splits water to form H2 and O2 using electricity).
- Currently, most renewable energy resources that can produce low-cost electricity are situated far from potential demand centres.
- Producing oxygen at such locations and then shipped, it would significantly erode the economics of it.
- A more viable option would be wheeling electricity directly from the solar plant.
- However, the electricity tariffs could double when supplying open-access power across State boundaries.
- Therefore, operationalising open access in letter and spirit, as envisioned in the Electricity Act, 2003, must be an early focus.
2) Ensure access to round-the-clock renewable power
- To minimise intermittency associated with renewable energy, for a given level of hydrogen production capacity, a green hydrogen facility will store hydrogen to ensure continuous hydrogen supply.
- Therefore, as we scale up to the target of having 450 GW of renewable energy by 2030, aligning hydrogen production needs with broader electricity demand in the economy would be critical.
3) Blending green hydrogen in industrial sector
- We must take steps to blend green hydrogen in existing processes, especially the industrial sector.
- Improving the reliability of hydrogen supply by augmenting green hydrogen with conventionally produced hydrogen will significantly improve the economics of the fuel.
- This will also help build a technical understanding of the processes involved in handling hydrogen on a large scale.
4) Facilitate investment
- Policymakers must facilitate investments in early-stage piloting and the research and development needed to advance the technology for use in India.
- The growing interest in hydrogen is triggered by the anticipated steep decline in electrolyser costs.
- Public funding will have to lead the way, but the private sector, too, has significant gains to be made by securing its energy future.
5) Focus on domestic manufacturing
- India must learn from the experience of the National Solar Mission and focus on domestic manufacturing.
- Establishing an end-to-end electrolyser manufacturing facility would require measures extending beyond the existing performance-linked incentive programme.
- India needs to secure supplies of raw materials that are needed for this technology.
- Further, major institutions like the DRDO, BARC and CSIR laboratories have been developing electrolyser and fuel-cell technologies.
Consider the question “Even before it has reached any scale, green hydrogen has been anointed the flag-bearer of India’s low-carbon transition. In lights of this, examine the challenges India faces in scaling up its green hydrogen production and suggest the ways to deal with these challenges.”
Conclusion
Hydrogen may be lighter than air, but it will take some heavy lifting to get the ecosystem in place.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: India Energy Outlook Report, 2021
Mains level: India energy sector
The International Energy Agency (IEA) has recently released the India Energy Outlook 2021 report.
Try this MCQ:
Q.The Global Energy Transition Index recently seen in news is released by:
a) International Energy Agency (IEA)
b) World Economic Forum (WEF)
c) International Renewable Energy Agency (IRENA)
d) International Solar Alliance
Highlights of the India Energy Outlook Report
(1) Energy consumption
- India at present is the fourth-largest global energy consumer behind China, the United States and the European Union.
- It will overtake the European Union as the world’s third-largest energy consumer by 2030.
- It will account for the biggest share of energy demand growth over the next two decades.
(2) Energy demand
- India accounts for nearly one-quarter of global energy demand growth from 2019-40 — the largest for any country.
- Its share in the growth in renewable energy is the second-largest in the world, after China.
- A five-fold increase in per capita car ownership will result in India leading the oil demand growth in the world.
- Also, it will become the fastest-growing market for natural gas, with demand more than tripling by 2040.
(3) Industrial consumption
- By 2040, India is set to account for almost 20 per cent of global growth in industrial value-added, and to lead global growth in industrial final energy consumption, especially in steelmaking.
- The nation accounts for nearly one-third of global industrial energy demand growth to 2040.
(4) Dependence on fossil fuels
- To meet its energy needs, India will be more reliant on fossil fuel imports as its domestic oil and gas production stagnates.
- India’s oil demand is seen rising by rising by 74 per cent to 8.7 million barrels per day by 2040 under the existing policies scenario.
- The natural gas requirement is projected to more than triple to 201 billion cubic meters and coal demand is seen rising to 772 million tonnes in 2040 from the current 590.
(5) Coal trade
- India currently accounts for 16 per cent of the global coal trade.
- Many global coal suppliers were counting on growth in India to underpin planned export-oriented mining investments.
(6) Per-capita emission
- On a per-capita basis, India’s energy use and emissions are less than half the world average, as are other key indicators such as vehicle ownership, steel and cement output.
- India will soon become the world’s most populous country, adding the equivalent of a city the size of Los Angeles to its urban population each year.
About International Energy Agency
- The IEA is a Paris-based autonomous intergovernmental organization established in the framework of the Organisation for Economic Co-operation and Development (OECD) in 1974 in the wake of the 1973 oil crisis.
- It was initially dedicated to responding to physical disruptions in the supply of oil, as well as serving as an information source on statistics about the international oil market and other energy sectors.
- At the end of July 2009, IEA member countries held a combined stockpile of almost 4.3 billion barrels of oil.
- They are required to maintain total oil stock levels equivalent to at least 90 days of the previous year’s net imports.
- The IEA acts as a policy adviser to its member states but also works with non-member countries, especially China, India, and Russia.
- The Agency’s mandate has broadened to focus on the “3Es” of effectual energy policy: energy security, economic development, and environmental protection.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Energy Island
Mains level: Energy Island Concept
The Danish government has approved a plan to build an artificial island in the North Sea as part of its effort to switch to green energy.
The Energy Island concept provides an innovative solution for countries like India grappled with the scarcity of land required for RE projects!
What is Energy Island?
- An energy island is based on a platform that serves as a hub for electricity generation from surrounding offshore wind farms.
- The idea is to connect and distribute power between Denmark and neighbouring countries.
What is the Danish project?
- Denmark has already entered into agreements with the Netherlands, Germany and Belgium to begin the joint analysis of connections in the energy island.
- The project is being called the largest construction project to be undertaken in Denmark’s history with an estimated cost of DKK 210 billion.
- In June 2020, the Danish Parliament decided to initiate the construction of two energy islands, which will export power to mainland Denmark and neighbouring countries.
- One of these islands will be located in the North Sea and the second island, called the island of Bornholm, will be located in the Baltic Sea.
- The artificial island will be located about 80 km into the North Sea and the majority of it will be owned by the Danish government.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: CERC
Mains level: Paper 3- Renewable energy markets
The article takes stock of the progress India made on renewable energy capacity and the steps taken for its trade through the creation of green markets.
India increasing share of renewable energy
- As a signatory to the Paris Climate Agreement, India is committed to increasing its share of renewable energy capacity to 450 GW by 2030.
- India has an installed renewable energy capacity of 89 GW.
- India has today become the most attractive destination for investment in the renewable sector.
- During the last six years, has attracted over Rs 4.7 lakh crore of investment, including FDI of about Rs 42,700 crore.
- India witnessed 20% CAGR growth in the renewable generation since FY16 while total electricity generation saw 4.3% growth in the same period.
- The current levelised cost of energy (LCOE) for large scale solar in India is around Rs 2.5 per kWh, compared to ~Rs 12 in 2010.
Factor’s responsible
- Waiver of inter-state transmission charges for the sale of solar and wind power, the renewable purchase obligation (RPO) trajectories for states, focus on maintaining the sanctity of contracts, permitting FDI in the renewable sector have accelerated the progress.
Trading in renewable power
- Most renewable power generation companies in India are committed to selling their power to consumers—mostly discoms under the long-term Power Purchase Agreements (PPAs).
- It is also a matter of gratification that most generation companies have adopted a robust system of forecasting and scheduling of power.
- It is in this context, the CERC was approached for creating a market for green energy.
- Ultimately, the CERC approved trading of renewable energy contracts under Green Term Ahead Market (GTAM) on the energy exchange.
- The green market commenced trade on August 21, in day-ahead contingency (DAC) and intra-day contracts in both solar and non-solar segments.
- The green market has now launched two more options—daily and weekly.
- This will further strengthen the market and allow participants to buy green energy through contracts available for trade in all the segments.
- The energy will be delivered to the market participants leveraging the national, regional and state-level transmission and distribution network.
- With robust value proposition such as transparency, competitive prices, flexibility, and payment security and financial savings that the exchange market offers, a pan-India green market has the potential to drive and facilitate the country to meet its renewable energy targets.
- The green market will ultimately encourage green generators to adopt multiple models of sale and trading.
Conclusion
Going forward, the introduction of new segments such as green day-ahead market, long-duration green contracts, contract for difference (CfD), etc, will play a crucial role in furthering sustainability goals, and ensuring that all the renewable energy generated within the country is dispatched in the most efficient manner through a pan India wide exchange-based energy markets.
Source:-
https://www.financialexpress.com/opinion/renewable-energy-generation-betting-on-the-green-power-market/2147657/
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Green Energy Convergence Project, EESL
Mains level: Green Energy Convergence Project
The Energy Efficiency Services Limited (EESL) is set to roll out of India’s first Energy Convergence Project in Goa.
Green Energy Convergence Project
- Under the project, EESL and the Department of New and Renewable Energy (DNRE) in Goa will carry out feasibility studies and implementation of decentralized solar energy projects.
- The project aims to connect seemingly independent sectors like Solar Energy, Energy Storage and LED lights to provide solutions, which can enable in decarbonisation and affordable energy access.
- It will include the installation of 100 Megawatt decentralized ground-mounted solar power projects on government land to be used for agricultural pumping.
- It seeks to replace 6,300 agricultural pumps and distribute 16 lakh LED bulbs for rural domestic households.
Benefits of the project
- The projects will accelerate the usage of renewable energy sources, especially for agricultural and rural power consumption in the State.
- They will also contribute to the reduction of peak energy demand through the deployment of energy-efficient pumping and lighting thus contributing to overall sustainability.
About EESL
- A joint venture of NTPC Limited, Power Finance Corporation, Rural Electrification Corporation and POWERGRID, the EESL was set up under Ministry of Power to facilitate the implementation of energy efficiency projects.
- EESL is a Super Energy Service Company (ESCO) that seeks to unlock energy efficiency market in India, that can potentially result in energy savings of up to 20 per cent of current consumption.
- It also acts as the resource centre for capacity building of State DISCOMs, ERCs, SDAs, upcoming ESCOs, financial institutions, etc.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Green Term Ahead Market (GTAM)
Mains level: Not Much
As a first step towards Greening the Indian short term power market, the Ministry of Power and New & Renewable Energy (MNRE) has launched pan-India Green Term Ahead Market (GTAM) in electricity.
About GTAM
- GTAM is an alternative new model introduced for selling off the power by the renewable developers in the open market without getting into long term PPAs.
- This would promote RE merchant capacity addition and help in achieving RE capacity addition targets of the country.
Benefits of GTAM
- It would lessen the burden on the RE-rich States and incentivize them to develop RE capacity beyond their own RPO.
- It will benefit buyers of RE through competitive prices and transparent and flexible procurement. It will also benefit RE sellers by providing access to the pan- India market
Key features
- Transactions through GTAM will be bilateral in nature with clear identification of corresponding buyers and sellers, there will not be any difficulty in accounting for RPO.
- GTAM contracts will be segregated into Solar RPO & Non-Solar RPO as RPO targets are also segregated.
- Further, within the two segments, GTAM contracts will have Green Intraday, Day Ahead Contingency, Daily and Weekly Contracts
- Green Intraday Contract & Day Ahead Contingency Contract – Bidding will take place on a 15-minute time-block wise MW basis.
- Daily & Weekly Contracts – Bidding will take place on an MWh basis.
- Price discovery will take place on a continuous basis i.e. price-time priority basis. Subsequently, looking at the market conditions open auction can be introduced for daily & weekly contracts.
- Energy scheduled through GTAM contract shall be considered as deemed RPO compliance of the buyer.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: IMEF
Mains level: Various energy related alliances and partnerships
In the joint working group meeting of the Sustainable Growth Pillar of the India-US partnership, an India Energy Modeling Forum was launched.
Note the following things about IEMF:
1. It is a bilateral forum.
2. It is not associated with any International Agency say UN, IEA, IAEA etc.
3.On March15 last year, the idea was incepted and only a formal workshop was organized on IEMF (it wasn’t launched).
UPSC can puzzle you along these 3 points in a statements-based MCQ.
India Energy Modeling Forum (IEMF)
- The IEMF seeks to provide a platform for policy makers to study important energy and environmental issues and ensure induction of modelling and analysis in informed decision making process.
- The Forum aims to improve cooperation and coordination between modeling teams, the GoI, knowledge partners and think-tanks, build capacity of Indian institutions, and identify issues for joint modeling activities and future areas of research.
What is Energy Modelling?
- Energy modeling or energy system modeling is the process of building computer models of energy systems in order to analyze them.
- There exists energy modelling forums in different parts of the World.
- Such models often employ scenario analysis to investigate different assumptions about the technical and economic conditions at play.
- Outputs may include the system feasibility, greenhouse gas emissions, cumulative financial costs, natural resource use, and energy efficiency of the system under investigation.
- Governments maintain national energy models for energy policy development.
Outcomes of the forum
- Discussions on energy modelling in India and the world explored how energy modelling can play an important role in decision-making.
- The panelists laid focus on bridging the rural-urban divide and factoring in energy pressures from the informal economy within models.
- Deliberations included a spotlight on how the impact of the evolving character of India’s cities, industries and especially the transport sector should be included in the any India-centric models.
- The shift towards electric mobility, an increasing emphasis on mainstreaming of renewable energy options and overarching environmental concerns were also stated as key factors for determining India’s energy future.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Open access charges
Mains level: Paper 3- Power sector
Let us discuss renewable energy. Recently, state governments increased the standard charges on open access renewable projects and incentives were cut back. So, what can be implications of such steps? Read to know…
What open access power user mean?
- Open access allows large users of power – typically those who consume more than 1 MW – to buy power from the open market.
- These open access buyers don’t have to depend on a more expensive grid.
- Through incentives given by state governments, these non-grid avenues of power purchase have been encouraged in renewable energy projects.
Now, state governments increased standard charges on open access renewable energy projects or are cutting back on incentives.
Reason given by state: Tariff competitiveness of wind and solar power has shown a significant improvement.
Implications:
- Credit rating agency ICRA said that with the changes in policy, the viability of open access – against grid-connected energy – is no longer as attractive.
- The open-access charges applicable in case of third party sale of power have also increased highlights the rising regulatory risk for such independent power producers (IPPs).
- Earlier, concessions were available from levy of cross-subsidy surcharge, transmission and wheeling charges as well as favourable banking facilities to promote the renewable sector.
- Now, the power policies in many states have either completely withdrawn or reduced incentives given to open access customers.
Issues for group captive projects
- A group captive scheme is where someone develops a power plant for collective usage of many commercial consumers.
- At present, a power project is considered ‘captive’ if consuming entity or entities consume at least 51% of the power generated and owns at least 26% of the equity.
- The State Electricity Regulatory Commission (SERC) in Maharashtra has recently approved the levy of additional surcharge on group captive projects in renewable sector.
- Group captive consumers were earlier exempt from such levy in Maharashtra.
- Risk of other state following holds.
Challenges
- The viability of power procured under the open access route depends on discount offered by the power producer as compared to the grid tariffs.
- The applicable open access charges across the key states are estimated to vary quite widely from Rs.2.5 per unit to Rs. 5 per unit.
- Open access projects have tenure (5-10 years) of the power purchase agreements (PPAs) under the third-party sale route as against the 25 year-tenure for PPA in case of utility scale projects.
- Net tariff realised for such projects remains exposed to regulatory risk given the likelihood of revision in open access charges by the regulators.
- It is also subject to tightening of energy banking norms being observed by SERCs across the states.
Consider the question “Examine the implications of policy changes adopted by the state with regard to open access charges and phasing out of other incentives to Independent Power Producers (IPPs)”
Conclusion
Move by states could jeopardise many projects and also threaten the progress made towards the adoption of clean energy.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Biogeographic Zones, Etalin Hydro Electric Project
Mains level: India's border infrastructure
A group of conservationists has written to the Environment Ministry seeking rejection of the approved Etalin Hydro Electric Project in the Dibang Valley district of Arunachal Pradesh.
Make a note of major dams in India along with the rivers, terrain, major Wildlife sanctuaries and national parks incident to these rivers.
Etalin Hydro Electric Project
- Etalin HEP is a 3097 MW project based on the river Dibang.
- It is envisaged as a run of the river scheme on rivers Dri and Tangon in the Dibang Valley District of Arunachal Pradesh.
- Dibang is a tributary of the Brahmaputra River which flows through the states of Arunachal Pradesh and Assam.
- The project is being executed through the Etalin Hydro Electric Power Company Limited, a JV company of Jindal Power Limited and Hydro Power Development Corporation of Arunachal Pradesh Limited.
- It is expected to be one of the biggest hydropower projects in India in terms of installed capacity.
Issues with the Project
- The Project falls under the richest bio-geographical province of the Himalayan zone and would be located at the junction of major biogeographic zones like Palaearctic Zone and Indo-Malayan Zone.
- It would involve the clearing of 2.7 lakh trees in “subtropical evergreen broad-leaved forest and subtropical rain forests”.
- Underscoring the inadequacy of the Environment Impact Assessment report on Etalin, the conservationists said observations by wildlife officials were ignored.
- These include the threat to 25 globally endangered mammal and bird species in the area to be affected.
Back2Basics: Biogeographic Zones
- A biogeographic realm or ecozone is the broadest biogeographic division of Earth’s land surface, based on distributional patterns of terrestrial organisms.
- These zones delineate the large areas of the Earth’s surface within which organisms have been evolving in relative isolation over long periods of time.
- They are separated from one another by geographic features, such as oceans, broad deserts, or high mountain ranges that constitute barriers to migration.
- Originally, six biogeographic regions were identified: Palearctic (Europe and Asia), Nearctic (North America), Neotropical (Mexico, Central and South America), Ethiopian/Afrotropic (Africa), Oriental/Indo-Malayan (Southeast Asia, Indonesia) and Australian (Australia and New Guinea).
- Currently, eight are recognised since the addition of Oceania (Polynesia, Fiji and Micronesia) and Antarctica.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Global Energy Transition Index
Mains level: India's transition towards renewable energy
India has moved up two positions to rank 74th on a Global ‘Energy Transition Index (ETI)’ with improvements on all key parameters of economic growth, energy security and environmental sustainability.
Possible prelim question:
Q. The Global Energy Transition Index recently seen in news is released by:
a) International Energy Agency (IEA)
b) World Economic Forum (WEF)
c) International Renewable Energy Agency (IRENA)
d) International Solar Alliance
Energy Transition: What does it mean?
- Energy transition refers to the global energy sector’s shift from fossil-based systems of energy production and consumption — including oil, natural gas and coal — to renewable energy sources like wind and solar, as well as lithium-ion batteries.
- The increasing penetration of renewable energy into the energy supply mix, the onset of electrification and improvements in energy storage are all key drivers of the energy transition.
What is the Energy Transition Index (ETI)?
- The ETI is a fact-based ranking intended to enable policy-makers and businesses to plot the course for a successful energy transition.
- The benchmarking of energy systems is carried out annually across countries.
- Part of the World Economic Forum’s Fostering Effective Energy Transition initiative, it builds on its predecessor, the Energy Architecture Performance Index.
- The ETI is a tool for energy decision-makers that strive to be a comprehensive, global index that tracks the performance of energy systems at the country level.
- It also incorporates macroeconomic, institutional, social, and geopolitical considerations that provide enabling conditions for an effective energy transition.
Global rankings
- Results for 2020 show that 75 per cent of countries have improved their environmental sustainability.
- Sweden has topped the ETI for the third consecutive year and is followed by Switzerland and Finland in the top three.
- Surprisingly, France (ranked 8th) and the UK (7th) are the only G20 countries in the top ten.
- The scores for the US (32th), Canada (28th), Brazil (47th) and Australia (36th) were either stagnant or declining.
India’s highlights
- India is one of the few countries in the world to have made consistent year-on-year progress since 2015.
- India’s improvements have come across all three dimensions of the energy triangle — economic development and growth, energy access and security, and environmental sustainability.
- The WEF said that the emerging centres of demand such as India (74th) and China (78th) have made consistent efforts to improve the enabling environment.
- For India, gains have come from a government-mandated renewable energy expansion programme, now extended to 275 GW by 2027.
- India has also made significant strides in energy efficiency through bulk procurement of LED bulbs, smart meters, and programs for labelling of appliances.
Threats posed by COVID-19
Beyond the uncertainty over its long‑term consequences, COVID-19 has unleashed cascading effects in real-time:
- The erosion of almost a third of global energy demand
- Unprecedented oil price volatilities and subsequent geopolitical implications
- Delayed or stalled investments and projects
- Uncertainties over the employment prospects of millions of energy‑sector workers
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Greem Hydrogen
Mains level: Read the attached story
The govt is planning a $2 billion incentive program for the green hydrogen industry, in a bid to cut emissions and become a major export player in the field.
What is Green Hydrogen?
- Green hydrogen is hydrogen gas produced through the electrolysis of water.
- It is an energy-intensive process for splitting water into hydrogen and oxygen— using renewable power to achieve this.
- The current cost of green hydrogen in India is ₹300 to ₹400 per kg.
Hydrogen Energy: A Backgrounder
- Hydrogen is an important source of energy since it has zero carbon content and is a non-polluting source of energy in contrast to hydrocarbons that have net carbon content in the range of 75–85 per cent.
- Hydrogen energy is expected to reduce carbon emissions that are set to jump by 1.5 billion tons in 2021.
- It has the highest energy content by weight and lowest energy content by volume.
- As per International Renewable Energy Agency (IRENA), Hydrogen shall make up 6 per cent of total energy consumption by 2050.
- Hydrogen energy is currently at a nascent stage of development, but has considerable potential for aiding the process of energy transition from hydrocarbons to renewable.
Why hydrogen?
- Better properties: At standard temperature and pressure, hydrogen is a nontoxic, nonmetallic, odourless, tasteless, colourless, and highly combustible diatomic gas.
- Clean fuel: Hydrogen fuel is a zero-emission fuel when burned with oxygen. It can be used in fuel cells or internal combustion engines. It is also used as a fuel for spacecraft propulsion.
- Ample sources: Hydrogen can be sourced from natural gas, nuclear power, biomass, and renewable power like solar and wind.
- Phasing out carbon: India remains committed to environmental and climate causes with a massive thrust on deploying renewable energy and energy efficiency measures.
- Diversification of our energy basket: This would be the key lever enabling this transition. That’s why the emergence of hydrogen at the centre stage is a welcome development.
How Hydrogen can be produced?
Commercially viable Hydrogen can be produced from –
- Hydrocarbons including natural gas, oil and coal through processes like steam methane reforming, partial oxidation and coal gasification
- Renewables like water, sunlight and wind through electrolysis and photolysis and other thermo-chemical processes.
How is Green Hydrogen produced?
- For source material, green hydrogen today is typically generated from water through a process known as electrolysis, which uses an electric current to split water into its component molecules of hydrogen and oxygen.
- This is done using a device called an electrolyzer, which utilizes a cathode and an anode (positively and negatively charged electrodes).
- This process produces only oxygen – or steam – as a byproduct.
- As for energy supply, to qualify as “green hydrogen,” the source of electricity used for electrolysis must derive from renewable power, such as wind or solar energy.
- Currently the production of green hydrogen is two or three times more expensive than blue hydrogen.
How can green hydrogen be used?
Hydrogen can be used in broadly two ways. It can be burnt to produce heat or fed into a fuel cell to make electricity.
- Fuel-cell Mobility: Hydrogen electric cars and trucks
- Container ships powered by liquid ammonia made from hydrogen
- “Green steel” refineries burning hydrogen as a heat source rather than coal
- Hydrogen-powered electricity turbines that can generate electricity at times of peak demand to help firm the electricity grid
Challenges in producing Green Hydrogen
India’s transition towards a green hydrogen economy (GHE) can only happen once certain key issues are addressed.
- Supply-Chain Issues: GHE hinges upon the creation of a supply chain, starting from the manufacture of electrolysers to the production of green hydrogen, using electricity from a renewable energy source.
- Technology: Green hydrogen needs electrolysers to be built on a scale larger than we’ve yet seen.
- Storage: Either very high pressures or very high temperatures are required, both with their own technical difficulties.
- Explosion Hazard: It is hazardous because of its low ignition energy and high combustion energy.
- Risk to use: Automotive fuels are highly inflammable, but a vehicle laden with hydrogen is likely to be more vulnerable in case of a major accident.
- High Cost of Production: To become competitive, the price per kilogram of green hydrogen has to reduce to a benchmark of $2/kg. At these prices, green hydrogen can compete with natural gas.
- Energy intensivity: Creating green hydrogen needs a huge amount of electricity, which means an enormous increase in the amount of wind and solar power to meet global targets.
- Lack of proper infrastructure, only 500 Hydrogen stations exist globally. Only countable manufacturers are involved as market players in this technology.
- Others: Low user acceptance and social awareness. Developing after-sales service for hydrogen technology.
Policy and Economic Challenges
- Economic sustainability: One of the biggest challenges faced by the industry for using hydrogen commercially is the economic sustainability of extracting green or blue hydrogen.
- Technological challenges: The technology used in production and use of hydrogen like Carbon Capture and Storage (CCS) and hydrogen fuel cell technology are at nascent stage.
- Cost Factor: These technologies are expensive which in turn increases the cost of production of hydrogen and will require a lot of investment which in turn add fiscal pressure on government.
- Higher Maintenance costs: Maintenance costs for fuel cells post-completion of a plant can be costly.
- Need for legal and administrative adherence: Certification mechanisms, recommendations, and regulations for different components of the system.
Way forward
- Hydrogen energy is at a nascent stage of development but has significant potential for realizing the energy transition in India.
- The new policy is a futuristic vision that can help the country not only cut down its carbon emissions but also diversify its energy basket and reduce external reliance.
- India’s transition can be a testament to the world on the achievement of energy security, without compromising the goal of sustainable development.
- The GoI must strongly pursue the objective of creating a GHE to make India a global manufacturing hub and place itself at the top of the green hydrogen export market.
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