Lockdowns slowed green energy push: IEEFA Report

Context:

The lockdowns slowed renewable energy installations in the country and the pace of such installation is lagging India’s 2022 target, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA).

Relevance:

GS-III: Industry and Infrastructure (Energy infrastructure), GS-III: Environment and Ecology (Environmental Pollution and Degradation, Conservation of the Environment, Government Policies and Initiatives)

Dimensions of the Article:

1. Highlights of the IEEFA report on Green Energy progress
2. Indian Initiatives regarding renewable Energy
3. Important points from the launch of “The India Story” booklet
4. Important Green Energy Targets

Highlights of the IEEFA report on Green Energy progress

• As part of its commitment to reducing greenhouse gas emissions, India has said that it would install 175 gigawatts (GW) of green energy by 2022 and 450 GW by 2030 but only 7 GW of such capacity was added in the financial year 2020-21. The pace of renewable energy installation is lagging behind India’s 2022 target.
• In its analysis of monthly volumes and prices at the Indian Energy Exchange (IEX) (the largest power exchange in India), the IEEFA study found that the amount of power traded increased by 20% over 2020, by 37% from the 2019 figure and by 30% over 2018. This led to prices on average increasing by 38% from the 2020 rates. Had there been more access to renewable energy, particularly wind and hydropower, it could have contributed to lower energy prices.
• Coal stocks hit a new record high at the end of 2020-21 and exceeded the monthly averages of the previous five years. Greater reliance on coal imports will increase thermal power prices in India, leading to higher prices for the ultimate consumer.

Indian Initiatives regarding renewable Energy

1. National Solar Mission (NSM): The 100 GW solar ambition at the heart of the world’s largest renewable energy expansion programme
2. The Wind Energy Revolution: Leveraging India’s robust wind energy sector to boost clean energy manufacturing and the rural economy
3. National Biofuels Policy and SATAT: Building value chains to reduce fuel imports, increase clean energy, manage waste, and create jobs
4. Small Hydro Power (SHP): Harnessing the power of water to integrate remote communities into the economic mainstream.
5. National Hydrogen Energy Mission (NHEM): Exploring the commercial viability of a versatile clean fuel
6. Production-Linked Incentive (PLI) Scheme: Integrating India into the global clean energy value chains
7. National Biofuels Policy and SAYAY: Building value chains to reduce fuel imports, increase clean energy, manage waste and create jobs

Important points from the launch of “The India Story” booklet

• As much as USD 70 billion (about Rs 5.2 lakh crore) has been invested in renewable energy across the country in the past seven years.
• In the last 6 years, India’s installed renewable energy capacity has increased by over two and a half times and stands at more than 141 Giga Watts (including large Hydro), which is about 37 per cent of the country’s total capacity (as on 16th June 2021).
• In the last 6 years, the installed solar energy capacity in India has increased by over 15 times, and stands at 41.09 GW.
• India’s renewable energy capacity is the 4th largest in the world.
• India’s annual renewable energy addition has been exceeding that of coal based thermal power since 2017.

Important Green Energy Targets

• In the Paris Agreement India has committed to an Intended Nationally Determined Contributions target of achieving 40% of its total electricity generation from non-fossil fuel sources by 2030.
• We are also aiming for a more ambitious target of 57% of the total electricity capacity from renewable sources by 2027 in Central Electricity Authority’s strategy blueprint. According to 2027 blueprint, India aims to have 275 GW from renewable energy, 72 GW of hydroelectricity, 15 GW of nuclear energy and nearly 100 GW from “other zero emission” sources.
• There is also a target for installation of Rooftop Solar Projects (RTP) of 40 GW by 2022 including installation on rooftop of houses.
• In 2019 at UN climate summit, India announced that it will be more than doubling its renewable energy target from 175GW by 2022 to 450GW of renewable energy by the same year. These targets would place India among the world leaders in renewable energy use and place India at the centre of its “Sunshine Countries” International Solar Alliance project promoting the growth and development of solar power internationally to over 120 countries.

-Source: The Hindu