Mains Marathon 2024

Approach Briefly introduce the importance of renewable energy transition for India’s sustainable development. Identify the factors driving India's renewable energy transition. Discuss the major challenges to India’s renewable energy transition. Propose solutions to facilitate a smoother transition to renewable energy. Conclude Suitably.

Introduction

The transition to renewable energy is crucial for India’s sustainable development, given its rapidly growing economy and increasing energy demands.India is embarking on an ambitious journey to expand its renewable energy (RE) capacity, aiming for 500 GW by 2030 and potentially 1 TW by 2035.

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Factors are Driving India's Renewable Energy Transition :

• Energy Security and Independence: India imports over 80% of its oil needs, making it vulnerable to global price fluctuations and geopolitical tensions.
  • Renewable energy offers a path to reduce this dependence. For instance, India's solar capacity growth to 85 GW in 2023 has already started reducing fossil fuel imports.
• Water Scarcity: Thermal power plants require significant water resources. In water-stressed regions, renewables offer a more sustainable alternative.
  • For example, Maharashtra's push for solar power is partly driven by recurring droughts affecting thermal power generation.
• Economic Competitiveness: Renewable energy, particularly solar, has become cost-competitive with conventional sources.
  • For instance, in December 2020, Gujarat Urja Vikas Nigam's (GUVNL) (Phase XI) auction for 500 MW of solar projects set a record for the lowest tariff of ₹1.99 (~USD0.025)/kWh..
    • This economic advantage is driving both public and private sector investments in renewables.
• Job Creation Potential: The renewable sector offers significant employment opportunities.
  • According to a CEEW-NRDC report, India can potentially create about 3.4 million jobs (short and long term) by installing 238 GW solar and 101 GW new wind capacity by 2030
  • The government's focus on domestic manufacturing through initiatives like the PLI scheme for solar modules aims to capitalize on this job creation potential.
• Climate Change Commitments: At COP26, India committed to reducing projected carbon emissions by 1 billion tonnes by 2030 and achieving net-zero emissions by 2070.
  • These commitments necessitate a rapid transition to renewables. The target of 500 GW non-fossil fuel capacity by 2030 is a direct outcome of these climate goals.
• International Cooperation : India's leadership in the International Solar Alliance and partnerships like the Global Biofuel Alliance and India-US Clean Energy and Climate Partnership have accelerated knowledge sharing and technology transfer.
  • These collaborations also bring international attention and pressure to meet stated goals.

Major Challenges to India’s Renewable Energy Transition :

• Land Acquisition Hurdles: The scale of land required for RE projects is immense. For instance, a 1 GW solar plant needs about 2,000 hectares.
  • Recent conflicts include protests in Rajasthan's Jaisalmer district against large solar parks encroaching on grazing lands.
    • These issues highlight the complex interplay between development needs and local community rights.
• Financing Issues : Securing funding for renewable projects remains a challenge, especially for smaller companies and startups. Access to affordable capital is essential for driving innovation and scaling projects.
  • According to analysis, India will require an investment of $293 billion between 2023 and 2030 to achieve its current solar and wind energy targets
• Intermittency and Storage Challenges: The variable nature of RE sources necessitates large-scale storage solutions.
  • Recent study indicates that by 2030, India would need 38 GW of four-hour battery storage and 9 GW of thermal balancing power projects for the cost-efficient and reliable integration of 450 GW of renewables.
  • The first large-scale battery storage tender (1000 MWh) by Solar Energy Corporation of India in 2021 is a step forward, but scaling up remains a challenge.
• Grid Integration and Stability Issues: As RE penetration increases, grid stability becomes a major concern.
  • In Tamil Nadu, early onset of wind power generation has faced challenges as Tangedco (Tamil Nadu Generation and Distribution Corporation) curtailed production to ensure grid stability
  • The implementation of forecasting and scheduling regulations by states like Gujarat and Tamil Nadu is a step towards addressing this, but challenges persist.
• Geopolitical Resource Dependencies: India's RE transition heavily depends on critical minerals like lithium, cobalt, and rare earth elements, predominantly controlled by a few countries. For instance:
  • China processes 80% of the world's rare earth elements.
  • The Democratic Republic of Congo supplies 70% of global 'mined' cobalt.
  • This dependency creates vulnerabilities in India's RE supply chain, potentially impacting national security and economic sovereignty.
• E-waste and End-of-Life Management: With the massive deployment of solar panels and batteries, e-waste management is becoming a critical issue.
  • According to the International Renewable Energy Agency, India is projected to become the fourth-largest producer of solar panel waste by 2050.
  • India currently lacks a comprehensive policy for solar panel recycling, though MNRE has drafted rules in 2022.
    • The absence of large-scale recycling facilities poses environmental risks.

Measures to Ensure a Smoother Transition to Renewable Energy :

• Land Leasing Revolution: To address land acquisition hurdles, India could implement a "Solar Farming" model:
  • Introduce long-term land leasing programs where farmers retain ownership while earning steady income from RE projects.
• Increasing Financial Support : The creation of dedicated renewable energy funds that offer low-interest loans and guarantees can stimulate investment and support project development.
  • To bridge the climate finance gap, India needs to exploit the rapidly growing pool of global green capital from sovereign wealth funds, global pensions, private equity, and infrastructure funds.
• Renewable Energy Special Economic Zones (RE-SEZs): Establishing dedicated zones with streamlined regulations and incentives for RE manufacturing and R&D can accelerate India's transition.
  • These RE-SEZs would create end-to-end RE ecosystems, from raw material processing to finished product assembly.
• Floating Solar Revolution: India can harness its vast aquatic spaces by developing large-scale floating solar projects on reservoirs, lakes, and coastal areas.
  • This approach would preserve valuable land while reducing water evaporation and algae growth.
• Workforce Transition From Coal to Clean Energy: Launch a "Green Collar" initiative to retrain coal sector workers for RE jobs
  • Establish RE manufacturing hubs in coal-dependent regions to create alternative employment.
• Blockchain-Powered Decentralized Energy Trading: Implementing peer-to-peer energy trading platforms using blockchain technology can revolutionize India's energy market.
  • This system would enable prosumers to sell excess energy directly to neighbors or the grid, increasing overall grid flexibility.
  • By incentivizing small-scale RE adoption, this approach can accelerate distributed energy resource deployment across the country.
• Waste-to-Energy Circular Parks: Creating integrated waste management and energy production facilities, or "Waste-to-Energy Circular Parks", could revolutionize both sectors.
  • These parks would combine various technologies like anaerobic digestion, gasification, and pyrolysis to handle different waste streams.

Conclusion

India has made significant progress, with an installed RE capacity of 191 GW as of May 2024, including 85 GW of solar power.This growth has been fueled by targeted policies and schemes such as the National Solar Mission, Wind Energy Policy, FAME India Scheme, and Renewable Purchase Obligation.By effectively leveraging these policies and schemes, India can facilitate a smoother transition to renewable energy, ensuring energy security, economic growth, and environmental sustainability for future generations.