Date : 04/08/2023

Relevance – GS Paper 3 – Renewable Energy

Keywords – RPO, Solar Energy, Grid Stability Challenges, Solar Panel

Context –

The transition to renewable energy technologies is vital in mitigating climate change, and India recognizes the significance of embracing cleaner energy sources. Among the various renewable options available, solar and wind energy have emerged as the primary choices for reducing greenhouse gas emissions and ensuring a sustainable energy future. This policy brief examines the advantages and challenges of adopting solar and wind energy in India's context, focusing on engineering, costs, and policy implications.

Advantages of Solar and Wind

One of the significant advantages of solar and wind energy is their lower carbon footprint. Lifecycle greenhouse gas emissions from solar and wind energy sources are estimated to be at least 20 times lower than coal. For instance, while coal emits 753-1095 gCO2 equivalent per kWh, solar only emits 7-83 gCO2 equivalent per kWh, and wind emits 8-23 gCO2 equivalent per kWh.

Intermittency and Grid Stability Challenges

The intermittent nature of solar and wind energy presents challenges in ensuring a stable and reliable power supply. Variations in weather conditions can lead to fluctuations in energy output, making it necessary to integrate backup systems. Battery storage, with a cost range of Rs. 6.7-7.1 per kWh for 2021 and projected to decline to Rs. 3.8-4.1 per kWh by 2030, is required to store surplus energy and supply electricity during low-generation periods.

Cost Competitiveness

While solar and wind energy offer environmental benefits, their cost competitiveness is still a concern. The levelized cost of electricity (LCOE) for solar was Rs. 2.8 per kWh in 2021 and projected to decline to Rs. 1.6 per kWh by 2030. Similarly, wind onshore LCOE was Rs. 3.6 per kWh in 2021 and projected to decrease to Rs. 2.8-3.2 per kWh by 2030. However, additional expenses associated with backup capacity need to be considered to ensure a reliable power supply.

Capacity Addition Targets and Challenges

India has ambitious targets for capacity addition in renewable energy. By 2031-32, solar is projected to have a 42% share in total installed capacity, and wind is expected to account for 14%. However, achieving these targets is not without challenges. Factors such as land acquisition, delays in clearances, contractual disputes, and disruptions due to the COVID-19 pandemic have affected progress.

Rooftop solar installations offer significant benefits, including reduced land requirements and transmission costs. India had set a target of adding 40 GW of rooftop solar by 2022 but has achieved only 8 GW as of February 2023. Challenges include reluctance from distribution utilities and the need for upfront capital investment by consumers.

The solarisation of agricultural pumps under the PM-KUSUM scheme aims to add 10 GW of small solar power plants and install a total of 35 lakh solar pumps. As of June 2023, a capacity of 113 MW of small solar plants and 2.45 lakh solar pumps have been installed. Challenges such as access to affordable finance and lack of subsidy from state governments have affected the uptake of the scheme.

Availability of Solar Panels

India has been heavily reliant on importing solar panels, accounting for more than 75% of its installed capacity. The rapid growth of the solar industry in the country has been fueled by imported panels. However, this dependence on imports raises concerns about energy security and trade imbalances. To reduce import reliance and promote domestic manufacturing, the government has implemented various policies, including increased import tariffs and production-linked incentives. As a result, the domestic manufacturing capacity for solar panels is expected to increase significantly in the coming years, making India more self-sufficient in meeting its solar energy needs.

Waste from Solar Panels

As solar panel installations increase, proper waste management becomes critical to prevent environmental and health risks. Solar panels contain elements such as silicon, aluminum, silver, copper, lead, and cadmium, which can be hazardous if not disposed of properly. Currently, most solar panels were not designed with recycling in mind, making it technically challenging and expensive to extract constituent elements from old modules.

India is projected to generate approximately 80 million metric tonnes of solar panel waste by 2050. To address this issue, the country needs to develop effective recycling and disposal mechanisms. Recycling would not only minimize environmental impact but also unlock the potential of valuable materials in solar panels for reuse. Policymakers and industry stakeholders must collaborate to establish a robust and sustainable waste management system for solar panels. Emphasizing eco-friendly product design and incentivizing responsible disposal practices can help India navigate the waste management challenges associated with the solar energy sector.

Demand-side Challenges

Demand response measures, including time-of-day tariffs and smart meters, can help shift electricity consumption to periods of higher renewable energy availability. The government has mandated the installation of smart meters by March 2025 and the introduction of time-of-day tariffs for all retail consumers (except agricultural consumers) by April 2025.

Demand Augmentation and Renewable Purchase Obligation

Renewable purchase obligation (RPO) targets are critical for promoting renewable energy demand. Many states in India have not achieved their RPO targets. To boost demand, the government has set an RPO target of 25% for 2022-23, rising to 43% by 2029-30. These ambitious targets aim to incentivize investments in renewable energy projects and accelerate the country's transition towards a greener energy landscape. However, challenges related to discom perceptions and grid integration must be addressed for successful implementation. By fostering a conducive policy environment, India can accelerate the adoption of renewable energy and achieve its climate objectives.

Conclusion

India's adoption of solar and wind energy has become increasingly crucial for its transition to cleaner and more sustainable energy sources in recent years. Despite facing challenges, the country's commitment to renewable energy has resulted in notable advancements in technology, the implementation of supportive policies, and improved cost competitiveness in the sector. By continuously striving to overcome these hurdles, India can effectively achieve its ambitious renewable energy goals, significantly contributing to global climate change mitigation efforts, and ultimately paving the way for a cleaner and more sustainable future for generations to come.

Source – PRS INDIA