India, guiding the world’s way to green transition

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India, guiding the world’s way to green transition

India, guiding the world’s way to green transition

Articles
Sep 30,23

Since history, development upfront has always been backed by the environment and today it is a yearning need to back and support the environment by vast development. Aligning with the green transition aim of the world leaders, Ayushi Khandelwal explores how renewable energies are helping power sector to construct a green globe.

India, guiding the world’s way to green transition

India is mounting with one of the largest Renewable Energy Installations in the world. With this “Green” has not remained as a colour merely but became a lifestyle for the people of the country. Sustainability is a preference and the budget allocation of Rs 35,000 crore for priority capital investments towards energy transition and net zero objectives by the government of India in 2023 is evidence of that. Indian companies as well as global firms are keenly investing in green projects in India. India's declaration of its intent to attain net zero carbon emissions by 2070, along with the goal of fulfilling 50 per cent of its electricity requirements through renewable sources by 2030, represents a key moment in the fight against climate change.

Current Outlook

According to the data from the Central Electricity Authority (CEA) of India, currently, 43 per cent of total installed generation capacity is coming from Non-Fossil Fuel which includes Hydro, Wind, Solar, BM Power/Cogen, Waste to Energy, Small Hydro Power, Other RE and Nuclear (Table 1). This amounts to the total generation of 179,322 MW of power in the country. Government policies and incentives have been an encouraging factor in it.

Green Growth was identified as one of the nodes in the SAPTARISHI (seven priorities) by the government of India in budget 23-24 alongside the National Green Hydrogen Mission was launched. The government implemented a scheme for “Development of Solar Parks and Ultra Mega Power Projects” in the country under which 11 Solar Parks with an aggregate capacity of 8521 MW have been completed and 7 Solar Parks with an aggregate capacity of 3985 MW have been partially completed. The total sanctioned number is 50 solar parks with an aggregate capacity of 37,990 MW across 12 states. The recognised renewable energy hubs in the country are Rajasthan, Gujarat, Andhra Pradesh, Karnataka, Telangana, and Tamil Nadu.

“The bioCNG industry along with the broader subject matter of renewable energy benefits greatly from an array of government policies and regulations that exist in India. We have seen substantial advantages from these initiatives, such as the National Biofuel Policy (2018), which offers a variety of incentives for the production of biofuel,” says Utkarsh Gupta, Founder, Gruner Renewable Energy. “These incentives also include tax advantages and funding assistance. Additionally, there are grants and financial incentives specifically designed for BioCNG facilities to manufacture. These incentives are essential in substantially lowering the capital investment needed to set up BioCNG business operations,” added Gupta.

Global Positioning

As per Renewable Energy Statistics 2023 released by the International Renewable Energy Agency, India has the fourth largest installed capacity of renewable energy globally. Firms and financial institutions around the globe are keeping their eyes on India for investments. The government of India’s decision to allow 100 per cent of Foreign Direct Investment under the automatic route has been fruitful to the country’s green steps. In a recent announcement UK government's development finance institution British International Investment (BII) announced its plan to invest $1 billion in Indian climate-related projects by 2026. A few months ago, The World Bank also approved $1.5 billion in financing to accelerate the development of India's low-carbon energy sector. India emerges as one of the most enticing locations for establishing renewable energy facilities due to its advantageous incentives, accessible financing choices, the presence of solar parks, and dedicated channels for investor facilitation.

According to the Ministry of Commerce and Industry recently published the data. Foreign Direct investment (FDI) in India’s renewable energy sector stood at $838 million in the fourth quarter of the financial year 2023. FDI in India’s renewable energy sector for FY23 stood at $2.5 billion, a 56 per cent increase year-on-year compared to $1.6 billion. The investment is the highest ever in the Indian renewable sector in a year. “Since we started serving the Indian market, we have shipped over 9GW of solar modules to India,” says Gaurav Mathur, Director, Trina Solar India.

Way forward

In September, a coalition of over 200 climate and energy organizations worldwide penned an open letter, urging global leaders and parties to the Paris Agreement to adopt an ambitious goal at the upcoming COP28 in the UAE: to triple renewable energy capacity to a minimum of 11,000 gigawatts by 2030. This call to action included prominent Indian companies.

Simultaneously, the government of India unveiled plans to establish a 'green city' in each state of the country, all powered by renewable energy sources. These cities will embrace eco-friendly practices, featuring solar rooftop systems on every house, solar parks on the city outskirts, waste-to-energy facilities, and public transportation systems enabled by electric mobility.

The Central Electricity Authority (CEA) has notified the National Electricity Plan (NEP) (Vol-I Generation) for the period of 2022-32. Based on generation planning studies carried out under the purview of preparation of the National Electricity Plan for the period of 2022-27, the likely Installed Capacity for the year 2026-27 is 609,591 MW comprising 273,038 MW of Conventional capacity and 336,553 MW of Renewable based Capacity along with BESS capacity (Battery Energy Storage System) of 8,680MW/34,720 MWh. (Figure 1)

With this, there are a few technological advancements on the way. Mathur further says, “The i-TOPCon technology, also known as tunnel oxide passivated contact technology, is the next big thing in the solar industry. This technology provides a further boost to the cell’s efficiency. When a PERC solar cell is paired with an ultra-thin tunnelling oxide layer, it adds another barrier to contain unabsorbed light, increasing the cell’s efficiency. Higher efficiency modules allow the module to harvest more energy per unit area. i-TOPCon modules also have an 80 per cent by-facility rate.” Solar PV is also growing in the industry and active support has been provided through productivity-linked incentives worth $3.2 billion for solar PV manufacturing.

The optimism around India's renewable energy sector is reflected in the expectation of attracting investments totalling $80 billion within the next four years. This forward-looking initiative not only aligns with global efforts to combat climate change but also positions India as a leader in sustainable energy practices. The growing population and electrification efforts in rural areas are driving the need for energy to fuel households, businesses, and communities. The shift towards clean energy not only addresses this demand but also mitigates pollution, enabling villages to achieve self-sufficiency through sustainable energy practices. With India's economy projected to grow by over 7 per cent, the increasing demand for energy provides a significant impetus for the rapid expansion of renewable resources. Coupled with its substantial clean energy transition goals, India is positioned to lead the global narrative on renewable energy.

On the way

National Green Hydrogen Mission with an outlay of Rs 19,744 crore from FY 2023-24 to FY 2029-30.
50 Solar Parks with aggregate capacity of 37,990 MW in 12 States across the country.
Construction and development of Dibang Hydro Power Project, Dibang Valley, Arunachal Pradesh for $4.15 billion.
British International Investment (BII) investment plan for $1 billion in Indian climate-related projects by 2026