Recently, the International Energy Agency (IEA) acknowledged that India would be the fastest growing energy consumer – and market – till 2040. The forecast also holds a promise for renewable energy (RE), as fast-declining costs turn solar and wind energy into the main drivers of growth in the power sector. In the recent years, India has increasingly adopted responsible renewable energy techniques and have taken positive steps towards clean air, reducing carbon emissions, and ensuring a more sustainable future. With an ambitious target of achieving 175 GW by 2022, India has been putting in massive efforts towards cleaner energy resulting in a sharp drop in the prices of solar & wind energy. In a bid to exceed Prime Minister Narendra Modi’s climate pledges, India also recently announced that it will tender enough renewable energy projects over the next three years to surpass 200 gigawatts of green capacity build by 2022. With renewable energy targets second only to those set by China, India has a long way to go from a current base of 60 gigawatts to reach its ambition in next five years.

The huge demand push from government though its programs, reverse auctions and lowering costs of turbines and solar panels have contributed to significant reduction in price of electricity generated from renewables. In the latest auctions power from wind and solar both have fallen below Rs 2.50 per unit. India is on track to catalyse $200-300 billion of new investment in its renewable energy infrastructure in the next decade with global capital inflows playing an increasingly crucial role.

Digital and holistic approach

In 2017, India faced various grid management challenges. As percentage of power generated from renewables rises, India’s huge power grid system needs to evolve to manage the future. It needs to be equipped to handle the erratic nature of power generated from renewable energy. The system will require sophisticated forecasting, frequent rebalancing and ability to ramp up or down conventional generation quickly to offset the gap created by increase or decrease in renewable generation through-out the day. Many experts also believe that one of the biggest issues related to balancing are coming across due to lack of digitization of the grid.

The grid will need a variety of tools like

Advanced weather forecasting, solar and wind generation forecasting, demand forecasting and supply demand balancing through advanced analytics and visualization

Market initiatives like dynamic pricing and demand response

Smart meters and IOT devices across the transmission and distribution network for accurate telemetry to reduce T&D losses and to manage net metering

Investment in complimentary assets with high ramp up rates like hydro and gas based power generators)

Investment in increased transmission capacity to ensure renewables don’t get stranded and are forced to curtail

All these will be needed to effectively manage the grid and integrate high volumes of renewable generation into the grid. Some states and distribution companies are already starting to adopt these but there is still a lot of work to be done.

Clean energy transforming India

India’s clean energy push can improve energy access in India’s poorest rural communities, thereby allowing more time for children to study after school, greater productivity and income for families, and improved health outcomes. Over the next five years, it is expected that India can see a growth of 300,000+ jobs in the renewable sector. India’s clean energy initiatives can also help address poverty in rural communities by providing self-sufficiency, steady incomes, healthcare benefits and skill-building opportunities to unskilled and semi-skilled workforce.

On the employment front, the biggest job creators are expected to be rooftop solar (220,000+), followed by utility solar (50,000+) and wind power (30,000+), with various categories of jobs including solar installers, maintenance workers, engineers, technicians, and performance data monitors. An addition of 21,000 jobs was seen in the sector in 2016-17, and for the coming year, the number is likely to grow even better and is estimated to be around 25,000.

The way forward

The Minister for New and Renewable Energy, Mr. R K Singh recently announced that for the first time, India will invite bids to set up offshore wind power projects in the country, with the government planning to auction for 5 gigawatt (GW) of capacity in 2018.

Solar and wind farms have been making good progress and now government needs to provide a special push to increase installations of rooftop solar. Solar has been a great story for jobs in the services sector in India. Now government is trying to push for the same in manufacturing. The government plans to seek bids globally for 20 GW of solar generation capacity by companies ready to set up manufacturing facilities in India, with the country expected to offer green investment potential of $3 trillion in the near future.

The next big wave in renewables will be about Energy Storage. Handling variability in renewable generation will get a big boost once energy storage becomes economical. As battery technologies improve and massive investments in batteries for electric vehicles is happening across the world, cost of energy storage is dropping rapidly. India’s Central Electricity Authority (CEA) has been debating whether it should mandate that all solar and wind projects above a certain size should be coupled with energy storage at plant or pool level. Chinese companies are already investing heavily in battery production for EVs and energy storage and India needs to setup an ecosystem for the same so that it does not have to rely on imports and can use this opportunity to generate jobs locally.

At present, India relies on thermal power generation for 80 per cent of its electricity, while hydro supplies a significant 10 per cent and renewables just seven per cent. However, India has set an ambitious but achievable national target of 275 GW of renewable capacity installed by 2027.

We are so much beyond what was expected in the renewable sector but there is still a long way to go.

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