The decentralisation of energy production through initiatives like rooftop solar installations empowers consumers at the local level and allows an opportunity for energy independence, enabling households and businesses to generate their own power and even sell surplus back to the grid
India's renewable energy sector is on the brink of a transformative shift, propelled by a blend of technological innovation and strategic government policies. Currently, India boasts over 180 GW of combined non-fossil fuel capacity, including 75 GW from solar and 45 GW from wind. This rapid progress is a testament to the country's commitment to its bold 2030 target of 500 GW, a goal that is further bolstered by a host of developments promising to sustain this growth and reshape India's energy landscape into a model of global sustainability.
Economic Advantages and Technological Progress for Round-the-clock Power
At the forefront of this transformation is the dramatic reduction in the cost of renewable energy. Solar power, which cost Rs 18 per unit in 2019, is now available for just Rs 2.5 to Rs 3 per unit, with prices locked in for 25 years. This affordability is revolutionising energy economics, embedding the economic value proposition in the solution.
However, this is still intermittent power until the sun shines or the wind blows. Hybrid solutions (combining wind and solar power to leverage the strengths of each), along with storage solutions like Pumped Storage Projects (PSP) or Battery Energy Storage Systems (BESS), are pivotal to removing this intermittency.
While hybrid solutions help generate energy across the day, energy storage solutions allow power to be stored during low demand and utilised during peak times. These make renewable energy more reliable, provide 24-hour power, and stabilise the grid against fluctuations in power supply.
Technical advancements in storage to further reduce its costs, along with technological improvements to increase generation, such as advanced solar tracking systems, bifacial modules that capture sunlight from multiple angles, and improvements in wind turbine efficiency, will make round-the-clock green power at par, if not cheaper, than conventional power in the next 2-3 years. And that's when the green power revolution will begin.
AI and Data Analytics Integration to smoothen the curve
The integration of data analytics and AI will further revolutionise the renewable energy sector by making it more reliable and cheaper. First, with intelligent storage, these systems optimise when to store energy versus when to use it directly. Eventually, with the introduction of time-based power pricing, these systems with smart grids will become big profit centres.
Second, these technologies enhance plant design and enable predictive maintenance, which predicts breakdowns even before they happen. They provide real-time monitoring, significantly reducing downtime and increasing generation. This integration ensures that renewable energy sources can be as predictable and reliable as traditional forms of energy, if not more so.
Innovative Financing and Policy Support
Renewable energy is capital-intensive to build. However, they also generate stable cash flow-generating assets like fixed income/debt funds. Thus, innovative financing mechanisms like green bonds and Infrastructure Investment Trusts (InVITs) are emerging, offering developers lower borrowing costs and attracting substantial investment. On the policy front, the Indian government's continued planning to increase the pipeline, for example, by announcing ~50 GW solar tenders per annum, is a testament to their commitment to the sector's growth.
Several supportive measures, like Inter-State Transmission System (ISTS) Waivers, reduce the cost of power by removing transmission charges for solar and wind projects, encouraging nationwide development; Renewable Purchase Obligations (RPOs) mandate that a certain percentage of power distributed by companies must come from renewable sources, ensuring a steady demand; Viability Gap Funding (VGF) for manufacturers to promote domestic manufacturing of solar cells and modules and reduce dependence on imports; 9400 Rs Cr VGF support for Battery Energy Storage systems.
Decentralisation and Direct Access
The decentralisation of energy production through initiatives like rooftop solar installations empowers consumers at the local level. It allows an opportunity for energy independence, enabling households and businesses to generate their own power and even sell surplus back to the grid.
The PM-Surya Ghar: Muft Bijli Yojana, with a total expected outlay of >75,000 crore, is a testament to this. In addition, liberalising the market to allow commercial and industrial customers to procure renewable energy directly through open access catalyses the adoption of renewable energy solutions across various sectors of the economy.
Conclusion A strategic shift to 24-hour sustainable power
India's stride towards a renewable future is marked by significant technological, economic, and policy-driven advancements that not only promise to meet its ambitious energy goals but also position the country as a leader in the global shift towards sustainable energy.
By continuing to harness these innovations and overcome challenges, India is setting a precedent for the world, demonstrating the viability and necessity of transitioning to renewable energy. As we look to the future, the ongoing paradigm shift in India's energy sector represents not just an environmental imperative but a major economic and strategic opportunity that could define the energy patterns of the 21st century.
(Tanya Singhal Founder of SolarArise & MynzoCarbon.)