Mumbai: Policy reforms, tax and duty reductions will make the renewable energy (RE) sector more attractive for private investment, say experts. Improving India’s existing power infrastructure and restructuring electricity distribution companies (DISCOMs) will help India achieve its goals of having clean energy as a source of 50% of its installed electricity capacity by 2030.
At the 26th Conference on Climate Change held in Glasgow (COP26) India’s new climate pledges declare It’s been a year. As of November 11, 2022, India’s total non-fossil fuel electricity installed At 407 gigawatts 171 GW (42%). To achieve its pledge, India needs to increase current non-fossil capacity by 138.5% and reach 408 GW or 50% of estimated electricity demand by 2030 (817 GW).
Prime Minister Narendra Modi at the Glasgow conference last year As announcedIndia’s most ambitious energy pledge of 500 GW of installed capacity from non-fossil fuels by 2030, approved by the country’s Union Cabinet Official Not included in climate pledges.
Currently, the 27th Global Climate Conference, COP27ongoing November 15 Energy Day In this context, we are looking at major reforms that will help India achieve its renewable energy targets faster.
Development of renewable energy capacity
The world uses two types of sources for all its energy needs: fossil fuels and non-fossil fuels [மற்ற ஆதாரங்கள் மரம், சாணம் மற்றும் வாயு எரிபொருள்கள்]. Fossil fuel refers to coal, lignite, gas and diesel. Among these, coal contributes to carbon emissions and, therefore, global warming The biggest contribution. Non-fossil fuels include solar, wind, small hydropower, waste-to-energy, large hydropower and nuclear power.
There is a global consensus on the need to gradually reduce the use of fossil fuels, especially coal, and to urgently clean up energy sources to curb global warming. Consensus There is an opinion.
India’s non-fossil fuel capacity has increased manifold in the last five years. To the epidemiology of the economy Increased electricity demand due to post-renaissance, India again Back to coal Had to. Yet, renewable energy efficiency still falls short of the government’s own targets. For example, India by 2022 175 A gigawatt of renewable energy capacity (excluding large hydropower and nuclear power) was aspired to be achieved but this capacity currently stands at 118 GW.
With its green energy target of 408 GW (including large hydropower)–which is almost the same as India’s current total installed capacity (a mix of fossil and non-fossil)–India needs to add about 30 GW every year until 2030. By comparison, it averaged 11.25 GW from non-fossil sources since 2018 Installed capacity And that’s more has added.
The Central Electricity Authority is confident of achieving the 2030 target. In fact, in 2020, non-fossil fuels estimated for 2029-30 established About 64% of capacity and 44.7% of production.
India’s climate commitment is based on installed capacity and not actual production.
Installed electricity refers to the generating capacity of a company. However, the actual generation or what the company achieves can vary drastically. At this time, fossil fuel sources (coal, lignite, gas and diesel) of India Established capacity 57.9% and 42.1% from non-fossil fuels (solar, wind, hydro, nuclear). In real terms, coal still dominates India’s power generation dominance pays, while renewable energy is 26% less.
Reduction of customs duties to accelerate solar sector growth
India’s solar power target by 2022 100 GWDil 60 GW The target has been reached.
The Standing Committee on Energy, in July this year, on the rate of development of renewable energy projects in India expressed its denial. India aims to install 40 GW of solar power by 2022 by setting up more than 50 solar parks and ultra mega solar power projects. Against this target, 39 solar parks with a capacity of 22 GW have been approved in 17 states. Of these approved, infrastructure is fully developed at eight locations and four solar parks are partially developed.
“17,121 MW [17 ஜிகாவாட்] The committee observed that the remaining 11 solar parks with potential have not even received approval from the ministry,” the standing committee report noted. “Land acquisition is a major challenge, depending on the cooperation of state governments and other stakeholders. But why 11 solar parks are still pending approval after more than three years is not clear. The practice of setting goals has become pointless…”
Also, by December 2021, India at its target capacity Only 27% Added rooftop solar power in the residential sector; Despite the 2022 target, of the 359,000 individual solar pumps announced in 2019 Only 21% Established as part of the ambitious PM-KUSUM scheme.
Experts say one of the ways to promote solar power is to reduce imports and tariffs.
India to increase GST rate on renewable energy equipment and components from 5% to 12% from October 2021 Raisedand 40% for solar equipment from April 1, 2022. Basic customs duty (BCD) prescribed.
On the back of imposing 40% basic customs duty on solar equipment, Govt Purpose Despite reducing dependence on imports and boosting domestic production, India’s domestic manufacturing capacity still falls short of the demand for these equipment, experts say. Pointer There are
“High reliance on imports creates uncertainty of prices and timely availability of volumes,” the February 2022 Standing Committee on Basic Customs Tariffs said. Report specified. “[ஆனால்] “Due to insufficient domestic capacity, reliance on expensive imports and price volatility may affect the viability of existing projects being implemented,” it noted.
Changing the auction system for wind power will knock India’s wind power out of whack
India has at least 302 GW of wind power containsbut so far only 39 GW have been installed, which in 2022 its 60 GW Almost 65% of the target. This includes its vast offshore wind capacity, which Unused has
India has been considering scrapping reverse power auctions for wind power in a bid to boost India’s wind power generation capacity, but has instead managed to slow down the sector.
“In reverse power auctions for wind power, there was a huge gap in auction volumes and implementation as the economics did not work for the developer. The prices found (per MW of power) were unsustainable,” said an official of Wind Power Association of India, who did not wish to be named. to India Spend He said.
In other words, low bids win you contracts, but that same low bid ensures that the operation is impossible. The same policy also wiped out the sub-50 MW category, the IWPA official added.
Better grid infrastructure is key to handling growing renewable energy potential
The country’s weak transmission mix poses a challenge to our renewable targets, while projects are located in remote areas and away from major cities and consumption centers. For example, ambitious plans to build a 7.5 GW large solar power (solar) project in the Le region by 2021, citing weak transmission infrastructure. were cancelled. Government to build that transmission infrastructure in the region within five years Now the target has kept The project has been scaled up to 10 GW and the government is working with the Ladakh administration to implement it.
Bloomberg NEF’s (BNEF) published in June 2022 ReportPower generation infrastructure supporting renewable energy supply was also identified as an area of focus in the analysis.
“Key factors driving power package investments include increasing generation capacity, replacing aging infrastructure and making grids smarter and more reliable by adding sensors and software at nodes and endpoints,” the report said, adding that India needs $175 billion from 2020 to 2029, adding new capacity to the existing network and It estimates that its transmission and supply package is needed to support reinforcements
Subsidies for battery storage technology, grid infra
Subsidies are one way the government can encourage any sector. Subsidies for renewable energy peaked in 2017and that have fallen every year until 2021, International Institute for Sustainable Development (IISD) and Energy, Environment and Water Council (CEEW), New Delhi on May 2022 Assessment Said.
By 2021, subsidies for renewable energy had fallen by 59% from 2017, while subsidies for fossil fuels remained roughly the same, meaning fossil fuel subsidies were nine times more than renewable energy, the estimate said.
“Package-scale solar photovoltaics and wind have reached cost parity with coal-based generation,” said Prateek Aggarwal, CEEW’s project lead and author of the evaluation. “However, to manage the variability of renewable energy [சூரிய மற்றும் காற்றாலை ஆற்றல் உற்பத்தி நாள் மற்றும் பருவத்தின் அடிப்படையில் மாறுபடும் என்பதால்]more subsidy support will be needed to scale up battery storage technology and strengthen infrastructure for transmission and distribution,” he said.
Discoms need to change
In a welcome decision, distribution companies (discoms) to purchase renewable energy goals India has now improved. Taking into account the availability of these sources and their impact on retail tariffs, the government sets a minimum percentage of total consumption of electricity derived from renewable energy sources. Total Renewable Purchase Agreement (RPO) for States for 2022-23 – Target – in 2021-22 21% from the 24.6% has been increased.
This target will gradually increase, and by 2030, states will be required to purchase 43.33% renewable energy as part of these commitments. The Electricity Amendment Bill, 2002, introduced in the Lok Sabha on August 8, 2022, intends to amend the Electricity Act – 2003 to introduce penalty provisions on discoms that fail to fulfill their renewable purchase agreements. This bill to the Standing Committee Sent has
However, given the capacity shortage, only a few states rich in renewable energy have been able to meet the old targets every year, while the rest In backwardness exist, which leads to the question of how those states are reached.
India Spend, reached out to the Ministry of Renewable Energy on concerns over the new revised purchase agreement targets, especially when states and discoms struggled to meet the earlier targets, and to seek feedback on other reforms suggested in this article. Further, India Spend approached the Central Electricity Authority (CEA). This article will be updated once we get a response from them.
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