ENERGY CONSERVATION

ENERGY CONSERVATION

RENEWABLE ENERGY

SOLAR ENERGY

Solar energy is radiant light and heat from the Sun that is harnessed using a range of ever-evolving technologies such as solar heating, photovoltaics, etc.

Data Potential Tropical location: India receives radiation for 300 days in a year, equal to 2,500-3,000 hours of sunshine, equivalent to 5,000 trillion kWh. Commitment: India is committed to 100 GW of solar power out of 175 GW renewable energy by 2022. Solar parks: The country has 42 solar parks to generate solar energy. Rooftop: 2.1 GW of Rooftop Solar power is currently installed, and India is also developing off-grid solar power for local energy needs. Solar capacity: India is expected to contribute 8% of global solar capacity by 2035. High Employment potential of solar power: Only 1 GW of solar manufacturing capacity generates approximately 4,000 jobs. Current Status Installed capacity: As of April 2020, India has an installed solar capacity of 35 GW, which is low compared to the target of 100 GW by 2022. Still, the solar power capacity has increased more than 11 times from 2.6 GW five years ago. World position: India has the 5th largest installed capacity of solar power in the world. 3rd largest solar market: In 2019, India installed 7.3 GW of solar power across the country, establishing its position as the third-largest solar market in the world. The share of renewables in India’s total energy mix has increased to 26%, according to the Central Electricity Authority, though mainly due to sluggish demand.

Need/Advantage of Solar Energy

1. Energy Security
   • Fulfill India’s clean energy demand: Reduces dependence on fossil fuels and import of energy, thereby reducing import bills.
   • Cheap and Reliable Energy Source: The cost of solar electricity systems has been reduced by 50%.
   • Diverse application: Solar energy has diverse applications ranging from water distillation to powering satellites.
2. Economic Development
   • Industrial growth: Solar energy can provide proper and continuous energy, which is essential for industrial growth.
   • Employment Generation: Creates jobs in fields like solar design, installation, and service.
   • Low costs: Solar energy conversion equipment has longer lifespans and requires less maintenance, ensuring higher energy infrastructure security.
   • No transmission loss: Solar energy eliminates transmission and distribution losses commonly associated with conventional electricity transmission lines.
3. Social Development
   • Human development: The problem of power cuts and unavailability of electricity, especially in rural areas, can hinder human development. Solar energy addresses this challenge effectively.
   • Green Energy in Rural Area: Essential for agribusiness in farms for running greenhouses, irrigation, and hay dryers, reducing risk in agriculture.
   • Small and Decentralized Electricity Source: Electricity can be generated on rooftops, facilitating uninterrupted electricity supply and enabling the sale of surplus energy to the grid, providing financial security.
4. Environmental Benefits

• Environmental Sustainability: India’s large part of energy demand is fulfilled by thermal energy, which heavily relies on fossil fuels, causing pollution. Solar energy, being a clean energy resource, serves as a substitute.
• Cleanest Energy: Solar energy is the cleanest among all forms of energy, resulting in near-zero pollution.
• No Climate Change: As there are no emissions, there is no contribution to climate change.
• No Harmful Effects: Protects biodiversity and wildlife while ensuring no pollution, thereby safeguarding human health.

1. Geographical Benefits

• Favorable Location: India, being a tropical country, has an abundance of free solar energy in almost all parts of the country.
• Use of Barren Land: Solar plants can be installed on barren and low-productivity lands, reducing pressure on already strained agricultural and forest lands.

Challenges and Issues

1. Policy Issues

• Dependence on Imports: India has a limited manufacturing base for solar systems and components, leading to heavy reliance on imports of solar cells and modules.
• Renewable Purchase Obligation (RPO) Issues: Poor enforcement of RPO regulations and lack of penalties for non-compliance with obligations by state discoms.
• Rooftop Solar: Many states lack a ‘net-metering’ policy, which allows the sale of surplus electricity back to the grid, restricting large-scale rooftop solar panel adoption.
• COVID-19 Impact: The projected addition of solar capacity in a COVID-affected future may fall short of the 100 GW target by 2022.

2. Environmental Issues

• GHG Emissions: Although solar energy production is clean, transportation and installation of solar systems are associated with greenhouse gas emissions.
• Solar Waste: India’s solar waste is estimated to reach 1.8 million tons by 2050, necessitating proper waste management.
• Toxic Materials: Hazardous materials used in photovoltaic (PV) production can indirectly harm the environment, albeit in smaller amounts.
• Dependence on Weather: Solar energy production depends on seasons and weather, making it unreliable during bad weather, rainy seasons, or nighttime.

3. Economic Challenges

• Availability of Land: It is difficult to find non-agricultural land with good solar irradiance for installations.
• High Installation Costs: Initial installation costs, including batteries, inverters, wiring, and other components, remain very high, making solar systems unaffordable for a large section of the population.
• Investment Uncertainty: Investment is hindered by uncertainties regarding import duties and future tax rates on purchasing power agreements.

4. Technological Challenges

• Grid Instability: Issues like grid instability and temperature sensor failures in PV cells pose significant technological challenges.

 

Solar Manufacturing in India

The solar power potential offers a manufacturing opportunity. The government is nearly a monopolistic buyer, but India lacks a proper manufacturing policy.

 

1. Data

• Import dependence: Imports, mostly from China, accounted for 90% of 2017 sales, up from 86% in 2014.

2. Issues in the Growth of the Solar Industry in India

• Lack of domestic manufacturing base: Domestic cell manufacturing in 2019 was a meager 3.1 GW.
• Import dependence: India’s solar capacity heavily relies on imported items, especially PV cells, modules, and other associated products from China.
• Dumping from China: Dumping of products leads to profit erosion for local manufacturers.
• Lack of capacity: Domestic manufacturers lack the technical and economic strength to compete with Chinese companies.
• Domestic Content Requirement (DCR) issues: WTO litigation and failed attempts to protect DCR have made local manufacturing growth challenging.
• Skilled workforce: Though policies support workforce training, the high skilling requirement for the sector is not being met.
• Absence of finance mechanisms: The low rate of return (RoR) for solar projects discourages banks from investing in solar capacity.
• Low tariffs: Solar tariffs in India are among the lowest globally, but state governments push for further reductions, negatively affecting manufacturing.
  • For example: Tariffs are capped at ₹2.50–₹2.80 per unit, limiting the scope for IPPs (Independent Power Producers) to improve profit margins.
• Uncertain policy changes:
  • States frequently change policies, making investments unpredictable.
    • For example:
      • Uttar Pradesh renegotiated old renewable energy tariffs.
      • Gujarat allowed land use only for projects supplying power to state discoms.
      • Rajasthan imposed additional charges on projects selling power outside the state.
• Lack of indigenous R&D: India depends on international cooperation for solar technology, hindering development.
• Decline in power sector demand: Falling power demand in recent years forces coal-based plants to operate below capacity, reducing demand for renewables.

 

Government Initiatives

1. Initiatives for Solar Energy Development:

• National Solar Mission: Promotes ecologically sustainable growth and addresses India’s energy security challenges.
• Indian Renewable Energy Development Agency (IREDA): A non-banking financial institution under the Ministry of New and Renewable Energy (MNRE) that provides term loans for renewable energy and energy efficiency projects.
• National Institute of Solar Energy: An autonomous institution under MNRE, acting as the apex body for solar R&D.
• Sustainable Rooftop Implementation for Solar Transfiguration of India (SRISTI) Scheme: Offers financial incentives for rooftop solar projects across the country.
• Solar Park Scheme: MNRE supports solar parks across states, with each park having a capacity of approximately 500 MW, providing financial assistance for development.

• Scheme for Development of Ultra Mega Renewable Energy Power Parks (UMREPPs): A scheme to develop Ultra Mega Renewable Energy Power Parks under the existing Solar Park Scheme.
• PM-KUSUM: Covers grid-connected renewable energy power plants (0.5–2 MW), solar water pumps, and grid-connected agricultural pumps.
• Atal Jyoti Yojana (AJAY): Launched in September 2016 for the installation of solar street lighting (SSL) systems in states where less than 50% of households are covered with grid power (as per Census 2011).

2. Initiatives for Solar Manufacturing

• Production Linked Incentive (PLI) Scheme: Provides incentives for high-efficiency solar PV modules to enhance India’s manufacturing capabilities and exports.
• Suryamitra Program: Prepares a qualified workforce in the solar energy sector.
• National Skill India Mission: Focuses on skilling youth for various solar energy sector roles.
• Import Substitution and Production Thrust: Imposes safeguard duties on solar imports and plans to impose customs duties to boost local manufacturing.
• Interest Subvention Scheme: The Ministry of New and Renewable Energy (MNRE) plans to offer loans with interest subventions for cell and wafer manufacturing to reduce import dependence.
• Domestic Content Requirement (DCR): Included in the National Solar Mission in 2010 to establish a robust domestic manufacturing base.

 

3. International Initiatives

• International Solar Alliance (ISA): A coalition of over 122 countries initiated by India, focusing on countries located between the Tropic of Cancer and the Tropic of Capricorn to promote solar energy.
• One Sun, One World, One Grid (OSOWOG): Aims to create a global framework for interconnected renewable energy resources, enabling seamless energy sharing.

 

Best Practices – China

• Developed Solar Champions through massive subsidies, cheap loans, grants, and easy access to utilities and land.
• Technology Top Runner Program: Focused on developing next-generation PV technology, achieving higher-efficiency solar products for 1.5 GW.

 

Way Forward

1. Cluster Approach: Create an integrated solar industrial cluster. Develop a Special Economic Zone (SEZ) focused on module manufacturing to promote a conducive environment.
2. Policy Measures: Develop a Solar Waste Management and Manufacturing Standards Policy. Utilize 3% of wasteland in each state for solar power projects.
3. Time-of-Day Pricing: Encourage dynamic load management and energy storage technologies.
4. Incentivize Decentralized Plants: Promote rooftop solar power and other solar appliance schemes.
5. Hybrid Solar Plants: Use hybrid setups like locating solar panels alongside wind farms, particularly in regions like the Himalayas.
6. Financing Mechanisms: Develop innovative financing schemes to support solar power project development, reduce loan repayment costs, and enhance clean energy production.

 

WIND ENERGY

The India’s wind energy sector is led by indigenous wind power industries through private sector investment. Supported by various fiscal and financial incentives such as accelerated depreciation benefits and concessional customs duty exemptions on certain components, the sector has shown consistent progress.

Data Potential: A recent study by the National Institute of Wind Energy (NIWE) estimates a wind energy potential of 302 GW at 100 meters hub-height in India. Target: The government has set an ambitious target of 175 GW power capacity from clean renewable energy resources by 2022, with 60 GW allocated for wind power. Installed Capacity: As of 30 September 2020, the total installed wind power capacity was 38.124 GW, making India the fourth-largest in the world. Global Position: India ranks 4th globally in installed wind power capacity, following China, the USA, and Germany.

Potential States

• The highest wind energy potential is in Gujarat, followed by Karnataka, Tamil Nadu, and Andhra Pradesh.
• Tamil Nadu is the largest producer of wind energy with 7,455.2 MW, followed by Maharashtra (4,450.8 MW), Gujarat (3,645.4 MW), and Rajasthan (3,307.2 MW).

 

Benefits

1. Economic

• Cost-Effective: Over the past decade, the cost of onshore wind turbines has fallen by 37%, and the cost of lithium batteries for electricity storage has dropped by 85%. State nodal agencies, under MNRE guidelines, have fixed tariffs for wind power procurement. Bidders quoted wind power tariffs as low as ₹2.44 per unit for 2 GW of wind power contracts.
• Reduced Import Bills: In 2020, India imported an estimated 180–190 million tonnes (MT) of coking coal, costing over ₹90,000 crores. Increasing wind power capacity can help reduce this import bill.

2. Environmental

• Clean Fuel Source: Wind energy does not pollute the air like conventional power plants that burn fossil fuels.
• Domestic Source of Energy: Wind is abundant and inexhaustible.
• Sustainable: Wind energy originates from solar energy (warm air-pressure difference). As long as the sun shines and the wind blows, this energy can be harnessed.
• Low Water Pollution: Wind energy has one of the lowest water consumption footprints compared to fossil fuels and nuclear power plants.
• To Meet INDC Goals: India’s Intended Nationally Determined Contributions (INDC) include achieving 175 GW of renewable power capacity by 2022 and increasing non-fossil-based power capacity from 30% to about 40% by 2030.

3. Social

• Employment Generation: Jobs have been created in the manufacturing, installation, and maintenance of wind turbines, as well as in wind energy consulting.
  • According to the Wind Vision Report, wind power has the potential to support more than 600,000 jobs in manufacturing, installation, and maintenance services by 2050.
• Easy Integration: Wind farms are compatible with farming and livestock activities, which can be conducted on the same land.

 

Challenges

1. Environmental

• Noise Pollution: Wind turbines might cause noise and aesthetic pollution.

• Impact on Wildlife: Bird collisions with moving wind turbine blades have been reported in certain areas.
• Wind Turbine Syndrome and Wind Farm Syndrome: Alleged adverse health effects linked to proximity to wind turbines, though these claims are widely considered pseudoscientific.

2. Economic

• Financial: High initial investment costs and inherent risks in wind energy projects.
• Per Unit Price: Wind power must still compete with conventional power generation.
• Land Use: Alternative uses for the land may be more profitable than wind energy generation.

3. Technical

• Infrastructure: Lack of infrastructure and institutions for R&D, which often rely on European technology.
• Remote Installation Sites: Wind farms are typically located far from urban centers where electricity is most needed.
• Grid Integration: Variable wind speeds throughout the day and year can cause power grid intermittency.
• Wind Fluctuation: Wind energy is not a constant source, as wind does not always blow consistently.

4. Policy

• Policy Support: Policies related to wind energy are still in a transitional phase.
• Tariff Issues: A ceiling tariff in auctions makes it difficult to meet specific regional needs.
• Distribution Challenges: Risks such as curtailment in power generation and delayed payments to energy producers by discoms.

 

OFFSHORE WIND ENERGY

Offshore wind energy involves the construction of wind farms in water bodies, primarily on the continental shelf, to generate electricity.

1. India’s Potential

• Long Coastline: India has a coastline of 7,600 km, offering significant offshore wind energy potential.
• Geographic Potential: Offshore wind power potential is high at the southern tip of the Indian peninsula and along the west coast.
• Estimated Potential: India has an estimated offshore wind power potential of 127 GW.
• Potential States: Gujarat and Tamil Nadu have been identified as key destinations for offshore wind projects.
• Manufacturing Base: India has a robust wind power equipment manufacturing sector.

2. Advantages of Offshore Wind Energy

• Availability of Area: Large open areas are available offshore for setting up wind energy projects, making it a solution to the lack of suitable wind turbine sites on land.
• High Wind Speeds: Offshore wind speeds are significantly higher than onshore.
• Consistency: Wind speeds at sea are more stable than on land, with calm periods being rare and short-lived.
• Low Transmission Costs: Offshore wind farms are often located near cities and load centers, minimizing transmission losses.
• Fewer Land Disputes: Offshore projects avoid land disputes, with large areas available for wind farm installations.
• Environmental Benefits: Offshore wind farms, like other renewable energy sources:

• Do not require water consumption for operation.
• Do not emit environmental pollutants or greenhouse gases during operation.

3. Disadvantages and Challenges

• Higher Cost: Offshore wind projects are expensive due to the production and installation of power cables under the seafloor to transmit electricity back to land.

• Impact on Shipping: Deep-sea wind farms may require the designation of “no-go zones,” creating challenges for commercial shipping.

• Paucity of Data: Lack of data for the calculation of offshore wind potential and the identification of suitable sites.

• Regulatory Framework: No dedicated regulatory framework currently exists for offshore wind energy, similar to the Jawaharlal Nehru National Solar Mission (JNNSM) for solar energy promotion.

• Higher Energy Tariffs: Offshore windmills are significantly more expensive than onshore ones. Offshore wind power costs approximately ₹12 per unit, compared to ₹2.43 for onshore wind power.

• Manufacturing Issues: Offshore wind farms require larger turbines and longer blades, but many Indian firms do not yet manufacture such high-capacity machines.

 

Government Measures

1. Initiatives for Wind Energy

• National Clean Energy Fund (NCEF): Proposed to finance and support clean energy initiatives.
• National Wind-Solar Hybrid Policy: Aims to develop 10 GW of wind-solar hybrid projects by 2022.
• Wind Bidding Scheme: For 1 GW wind projects connected with the Central Transmission Utility (CTU).
• Policy for Repowering of Wind Energy Projects: Framework to optimize the usage of wind resources.
• Wind Resource Assessment Programme: Over 700 wind monitoring centers established.
• Renewable Purchase Obligation: Obligates large energy consumers and DISCOMs to promote renewable energy.
• Waiver of Interstate Transmission Charges: Ministry of Power has waived interstate transmission charges on wind (and solar) power for plants commissioned up to March 2022, valid for 25 years.

2. Initiatives for Offshore Wind Energy

• National Offshore Wind Energy Policy: Policy focusing on wind energy mapping and identifying high-potential offshore locations for development.
• Offshore Wind Energy Project in Gujarat: The National Institute of Wind Energy (NIWE) issued an Expression of Interest (EOI) for 1 GW offshore wind projects in the Gulf of Khambhat.
• Government Funds: The Indian government allocated ₹10,000 crores as initial seed money from clean energy funds for offshore wind development.

 

Way Forward

• Generation-Based Incentive (GBI): Introduce schemes like GBI and renewable energy certification to reduce costs and make offshore wind energy more competitive.
• Indigenous Manufacturing: Indigenous manufacturing can be encouraged by providing incentives and subsidies for locally manufactured products.
• E-Bidding of Wind Projects: The process requires about three months, followed by an additional one and a half years to complete the project. Streamlining the bidding process is essential.

• Various Barriers: Technical, environmental, economic, and socio-economic barriers, along with policy uncertainties, must be addressed.
• Offshore Wind Projects: These are effective ways to utilize wind energy, requiring strong policies and thorough resource assessments for commercialization.
• Research and Development: Establishing financially stable and institutionalized research centers in every wind-prone state is crucial for innovation.

 

HYBRID ENERGY

A hybrid energy system combines two or more renewable energy sources to increase efficiency and balance energy supply. In India, hybrid systems mainly involve wind and solar energy combined with battery storage.

Challenges Facing Early Models

• Relies on Intermittent Sources: Energy production depends on sunlight or wind, restricting output to specific hours of the day.
• Lower Utilization of Transmission Capacity: The mismatch between peak power demand and renewable output raises transmission costs, especially during non-peak solar or wind periods (e.g., evenings).
• Need for Flexible Power Grids: Solar and wind energy are less controllable than fossil fuels, necessitating adaptable grids to manage sudden changes in power generation.
• Capacity and Supply Mismatch: Six states in western and southern India account for 80% of installed solar capacity but only meet 38% of the nation’s power demand.
• Peak Energy Issues: While renewable energy meets overall energy (kWh) demand, it often fails to address peak demand (kW) at critical times.
• Inherent Limitations of Rooftop Solar: Rooftop solar installations are significantly behind the 40 GW target, and smaller deployments are costlier than grid-scale farms.

 

Advantages of Hybrid Energy

• Solve Intermittency Issues: Wind and solar complement each other; when one is weak (e.g., no sunlight on cloudy days), the other can compensate, ensuring a more reliable energy output.
• Can Address Limitations: Hybrid systems improve fuel flexibility, reliability, emissions, and economic efficiency.
• Proper Conservation: Hybrid systems achieve higher reliability compared to single-resource setups by using redundant technologies and energy storage.
• Maximization: Designed to maximize renewable energy use, resulting in lower emissions than traditional fossil-fuel-based systems.
• Potential: Hybrid setups optimize the strengths of both wind and solar, offering grid-quality electricity ranging from kilowatts (kW) to several hundred kilowatts.
• Community Electrification: Hybrid systems can deliver steady electricity to remote villages and provide flexibility to upgrade connections in the future.

 

Advantages of Hybrid Energy Systems

• Can Tackle Peak Demand: Hybrid systems help address peak power demand during evening hours, which is challenging for single-source systems. Energy stored during excess generation hours can be released to provide 24×7 clean energy.
• Optimal Cost: An optimal combination of solar, wind, and storage can deliver stable power at a cost of around ₹6-7/kWh. Lithium-ion battery costs are expected to fall from $220–$240/kWh to below $100 in the next 3–4 years.
• Low Maintenance Cost: Hybrid energy systems have lower maintenance costs compared to fossil-fuel-based power plants.
• Work as a Backup Grid: Due to their efficiency, reliability, and long-term performance, hybrid systems can serve as backup solutions during blackouts or in areas with weak grids.
• Can tackle peak demand: Peak demand for power is reached in the evening hours, which cannot be catered by one source. If we can store some energy during excess renewable generation hours and release it into the grid during peak demand hours, the combined “hybrid” system can produce 24×7 clean energy.
• Optimal cost: An optimal combination of solar, wind, and storage can deliver stable round-the-clock power at today’s costs of around ₹6-7/kWh. Though this is higher, lithium-ion battery costs are expected to fall from the current $220-240/kWh to below $100 in the next 3-4 years.
• Low maintenance cost: The maintenance cost of hybrid energy systems is low compared to traditional power plants that use fossil fuels.
• Work as backup grid: Due to their high levels of efficiency, reliability, and long-term performance, these systems can also be used as an effective backup solution to the public grid in case of blackouts or weak grids.

 

Disadvantages

• Complicated Controlling Process: Operating different energy sources in a hybrid system requires expertise and proper coordination, making it challenging.
• High Installation Cost: While maintenance costs are low, initial investment costs for hybrid systems are higher than traditional systems.
• Shorter Battery Life: Batteries in hybrid systems may have a reduced lifespan as they are exposed to elements like heat and rain.
• Limited Flexibility: The number of devices that can connect to a hybrid system varies and may be restricted.
• High Import Bills: India’s reliance on lithium imports for batteries could further increase its import bills.
• Higher Generation Cost: Hybrid systems have higher generation costs compared to grid-solar and traditional power plants.

 

Solar-Wind Hybrid Policy 2018

Features of the Policy

1. Policy objectives:
   • Provide Comprehensive Framework: Promote large grid-connected wind-solar photovoltaic (PV) hybrid systems to ensure efficient utilization of transmission infrastructure and land.
   • Reduce Variability: Address variability in renewable power generation and achieve better grid stability.
   • Encourage New Technologies: Explore innovative technologies and operational methods for combined solar and wind PV plants.
2. Flexibility in Share of Wind and Solar Components: Projects must have at least 25% of the rated capacity from each resource to qualify as hybrid projects.
3. Technology Integration: Supports integration of alternating current (AC) and direct current (DC) systems for optimal performance.
4. Hybrid Projects: Encourages both new hybrid projects and hybridization of existing wind or solar projects to enhance transmission capacity.
5. Procurement of Power: Tariff-based competitive bidding will determine project selection.
6. Use of Battery Storage: Battery storage is allowed to optimize energy output and reduce variability.
7. Standards and Regulations: Mandates the formulation of regulatory standards and guidelines for hybrid systems.

 

Way Forward for Hybrid Energy

• Research: The hybrid energy concept is still new in India and requires enhanced R&D to optimize cost-effective combinations.
• Community Energy Service: Hybrid systems can deliver “high-quality” community energy services to rural areas at minimal economic costs, while offering maximum social and environmental benefits.
• Skill Management: Expansion of the Suryamitra Program to promote skill development in hybrid energy.
• Storage Alternative: Promote local manufacturing of lithium-ion batteries or research lower-cost alternatives to boost hybrid energy adoption.
• Funding and Incentives: Governments should fund large-scale projects and incentivize corporate investments in hybrid energy.

 

GEO-THERMAL ENERGY

The energy derived from heat stored within the Earth’s crust is known as geothermal energy. It is typically accessed from depths of 3 to 4 kilometers beneath the Earth’s surface.

Geothermal Energy and India

1. Potential: India has a potential to harness approximately 10 GW of geothermal energy, as per the Geological Survey of India (GSI).
2. Regions: GSI has identified and mapped over 350 geothermal regions across India.
3. Categories of Geothermal Sources:
   • Orogenic Sources: Himalayan region, Naga-Lushai Hills (Northeast), Andaman and Nicobar Islands.
   • Non-Orogenic Sources: Narmada-Son Rift Valley, Damodar Rift Valley, Godavari Valley, Cambay Graben, etc.
4. Prominent Geothermal Regions in India:
   
   • Cambay Graben (Gujarat)
   • Puga and Chhumathang (Jammu & Kashmir)
   • Tattapani (Chhattisgarh)
   • Manikaran (Himachal Pradesh)
   • Ratnagiri (Maharashtra)
   • Rajgir (Bihar).
     

 

Current Incident

• India’s first geothermal power project will be established in Ladakh.
• On February 7, 2021, an agreement was announced for setting up this project.
• The project will utilize natural geysers in the Puga area, located 170 km east of Leh, under the leadership of ONGC.

 

Characteristics of Geothermal Energy

• Renewable: Sustainable and long-term source of energy.
• Clean: Emits very few greenhouse gases (GHG).
• Reliable: Abundantly available and reduces dependence on imported energy.

 

Advantages of Geothermal Energy

1. Economic
   • Saving Money: Ground source heat pumps can reduce electricity bills with low capital and maintenance costs.
   • Economical: Though the initial cost is high, the annual energy output is significantly higher compared to other renewable energy sources.
2. Applications
   • Wide Usage: Can be utilized for melting snow, poultry and fish farming, cold storage, mushroom farming, greenhouses, and space heating.
   • Small Land Footprint: Geothermal facilities can be built with minimal land usage.
   • Reliable: Energy production is stable and predictable, unaffected by fluctuations like solar or wind energy.
3. Geographical
   • Global Distribution: Found across developed and developing countries, unlike fossil fuels.
   • Weather Independence: Energy production is unaffected by weather or seasonal changes, unlike solar and wind power.

 

Challenges/Issues

1. Economic
   • High Upfront Cost: Installation of geothermal (GT) technologies requires significant capital investment, though there are no fuel costs.
   • Constant and High Maintenance: Geothermal steam contains corrosive minerals, requiring regular maintenance of pipes and equipment.

 

1. Environmental
   • Air Pollution: Geothermal steam emits hydrogen sulfide gas (odor of rotten eggs), contributing to air pollution.
   • On-Site Noise Pollution: Noise from rotators and machines may disturb nearby areas.
   • Impact on Biodiversity: Toxic minerals in geothermal steam can harm aquatic life and plants.
2. Geographical
   • Limited Exploration: Only a small percentage of geothermal sites have been explored or mapped.
   • Accessibility Issues: Many geothermal sources are located in harsh or inaccessible areas (e.g., mountains, polar regions).
   • Location Restriction: Plants must be built where geothermal energy is accessible, limiting exploitation in certain areas.
   • Earthquake Risk: Digging for geothermal energy may alter Earth’s structure, triggering seismic activity.
   • Geographical Challenges: Requires heat sources near the surface or at accessible depths.
3. Other Challenges
   • Unpopularity: Geothermal energy is less known and less popular than other renewable sources.
   • Technology Deficit: Technologies are underdeveloped and still in infancy in many countries.
   • Safety Issues: Harmful gases escaping from geothermal vents pose containment and disposal challenges.
   • Sustainability: Energy fluids need to be reinjected into reservoirs faster than they are depleted, requiring effective management.

 

Initiatives

1. Government

• Geothermal Power Plant: A geothermal plant is being developed in Tattapani Geothermal Field, Chhattisgarh.
• Subsidy: For industrial projects, the government plans to provide a capital subsidy of up to 30%.
• MNRE Push: MNRE provides large incentives and subsidies for research, design, development, and demonstration projects to harness geothermal energy in India.

• Draft Indian Geothermal Energy Development Framework:
  • Aim: Contribute to India’s long-term energy security. Reduce greenhouse gas emissions by developing a safe, sustainable, and environmentally responsible geothermal energy industry.
  • Target: Deployment of 1,000 MW of geothermal energy capacity by 2022 in the initial phase and 10,000 MW by 2030.

2. Global Initiatives

• International Geothermal Association (IGA):
  • A non-profit, non-political, non-governmental association representing the global geothermal power sector.
  • Promotes the global deployment of geothermal technology for renewable energy systems.
  • Consultative status to the UN and special observer status to the Green Climate Fund.
• Global Geothermal Alliance (GGA):
  • Launched at COP21, the GGA facilitates dialogue, cooperation, and coordinated action among the geothermal industry, policymakers, and stakeholders globally.

 

Way Forward for Geothermal Energy

• Policy Measures: Develop a geothermal energy policy to set a course of action for the sector’s growth.
• Better Governance Framework: Create sector-specific strategies and transparent processes for geothermal energy generation.
• Demonstration Projects: Focus on small-scale demonstration projects for direct heat use applications.
• Financing Mechanisms: Implement innovative measures like green bonds, clean energy funds, and generation-based incentives linked to loans for geothermal projects.
• Facilitating Private Sector Investments: Increase private sector participation in geothermal power generation and exploration through targeted incentives.
• Capacity-Building: Strengthen the skills and capacity of agencies involved in geothermal energy production. Introduce modern techniques and technologies.
• Balance of Hegemony: Geothermal-rich countries, especially developing ones, can use this resource to counter the fossil-fuel dominance of certain nations.

 

Post the Paris Climate Summit, investing in non-conventional, carbon-free energy sources is imperative. Geothermal energy offers a renewable and reliable energy source, ensuring sustainability for the future.

 

HYDRO ENERGY

Utilization of the Earth’s natural water cycle to generate electricity. Renewable energy source utilizing water as its medium.

Potential

• Country’s Current Energy Generation: India generates 45 GW of power from hydropower.
• Hydro Potential: Total hydro potential is 148 GW, but only 31% of it is currently harnessed.
• Global Scenario of Hydropower: India ranks 5th globally in exploitable hydro-electric potential.
• Decline in Share: The share of hydropower in total energy capacity declined from 50.36% in the 1960s to about 13% in 2018–19.
• Regional Potential: The Northeast has the highest hydropower potential, followed by the Himalayan region in North India and Peninsular India.

 

Advantages of Hydropower

1. Renewable: Hydroelectric energy uses the Earth’s water cycle to generate electricity, making it a renewable resource.
2. Clean and Safe: Unlike fossil fuels and nuclear power, hydroelectricity does not emit greenhouse gases or toxins.
3. Flexible: Hydropower plants can be scaled up or down to meet changing energy demands quickly.
4. Reduced Dependence: Hydropower is a domestic energy source, reducing reliance on international fuel imports and enabling states to generate their own energy.
5. Continuous Availability: It is a more reliable and affordable energy source compared to depleting fossil fuels.
6. Cost-Competitive: Hydropower plants require minimal maintenance and replacements due to having fewer parts. Dams are designed for long-term use, often operating for 50–100 years.
7. Industrial Applications: Dedicated hydro plants can support industrial operations, such as aluminum electrolytic plants.
   • Example: Industrial development near the Damodar River.
8. Recreation and Reservoir Creation: Hydropower projects create reservoirs that can be used for fishing, swimming, and boating.
9. Other Benefits: Include flood control, irrigation, and water supply.

 

Major Challenges

1. Economic Challenges

• High Upfront Costs: Hydropower plants and dams are expensive to construct, regardless of the type of building, due to logistical challenges.
• Time and Cost Overruns: These projects take long periods to complete and may operate for extended periods before recouping construction costs.
  • Example: Tehri Dam, Natpha Jhakri Dam.
• Financing Difficulties: Finding a balance between affordability and bankability is challenging due to the capital-intensive nature of hydropower projects.

2. Policy Challenges

• Cess from States: States levy additional cesses on hydro projects, increasing costs.
  • Example: Uttarakhand charges water cess.
• High Tariff Costs: Tariffs often include costs for flood moderation and infrastructure building, making electricity expensive.
• Reluctance in Purchase Agreements: DISCOMs hesitate to sign Power Purchase Agreements (PPAs) due to initially higher tariffs.

3. Regulatory Challenges

• Environmental Clearance: Lengthy processes for environmental and forest clearances hinder project progress.
  • Example: Subansiri Lower Project in Arunachal Pradesh faced delays due to clearance issues.
• Uncertainty in Taxes: Changes in import duties and tax rates on power agreements disrupt financial planning.

4. Social Challenges of Hydropower

• Relocation Due to Flood Risks: Populations living downstream may be displaced due to potential flooding caused by dam operations.
  • Example: The World Commission on Dams estimated in 2000 that dams had displaced 40–80 million people globally.
• Land Acquisition and Safeguards: Challenges in land acquisition for hydropower projects lead to delays and project suspension.
  • Example: Narmada Dam faced significant land acquisition hurdles.
• Social Resistance: Opposition arises due to religious beliefs or fears of losing environmental benefits.
  • Example: The Tehri Dam project faced mass protests.

5. Environmental Challenges

• Failure Risks: Dams holding large volumes of water face risks from sub-standard construction, natural disasters, or sabotage, potentially causing catastrophic flooding downstream.
• Impact on Biodiversity: Dam construction and failures harm the catchment area, flora, fauna, and surrounding ecosystems.
• Methane Emissions: Plant material in flooded areas decomposes anaerobically, releasing CO₂ and methane, leading to higher pollution levels.
• Ecosystem Damage and Wetlands Loss: Reservoirs submerge extensive upstream areas, destroying lowland forests, wetlands, marshlands, and grasslands.

6. Technical Challenges

• Techno-Economic Viability: Depends on geology, topography, hydrology, and accessibility of the project site.
• Geological Surprises: Unpredictable geological conditions during construction are common, especially in the young fold Himalayas, where much of India’s hydropower potential is located.

7. Other Challenges

• Inter-State Disputes: Water-sharing disputes between states hinder integrated river basin development.
  • Example: The Shivasamudra Falls dispute caused by the Cauvery river row between Tamil Nadu and Karnataka.

 

SMALL HYDRO POWER

Small hydro projects are hydropower plants with capacities of 25 MW or below, including micro-hydro projects up to 2 MW.

Benefits of Small Hydro Power

• Faster Environmental Clearance: Requires less effort for environmental impact assessment (EIA), expediting clearance.
• No Displacement: Smaller projects have minimal flooding risk and require less land, avoiding large-scale displacement.
• Low Upfront Costs: Less expensive to develop and start operations compared to large hydro projects.
• Easier Land Acquisition: Government provisions make land acquisition for micro and small hydro projects simpler.
• Reduced Biodiversity Impact: Smaller catchment areas lead to lower impacts on biodiversity compared to large dams.
• Less Social Resistance: Since these projects are less disruptive, they face less opposition from local communities.
• No Geographical Constraints: High potential exists in the Himalayas and Northeastern regions, with easier installation and fewer geographic limitations.
• Small-Scale Irrigation: These projects support small-scale irrigation, ensuring a steady water supply throughout the year. 
• Low Seismological Threats: Small hydro projects pose less risk of dam-related earthquakes compared to large dams.

 

Measures Taken by the Government to Promote the Hydropower Sector

1. New Policy on Hydro Power Development

The policy aims to prevent the decline in hydropower’s share and exploit the vast hydroelectric potential in North and Northeastern Regions.

• Broaden RE Definition: Large hydropower projects (LHPs) are now declared as renewable energy sources. Previously, only projects under 25 MW were classified as renewable energy.
• HPO as a Separate Entity: Hydropower projects are treated as a separate entity under the Renewable Purchase Obligation (RPO), specifically for non-solar energy.
• LHP Now Renewable: Large hydropower projects will now fall under the renewable energy category.
• Tariff Rationalization Measures:
  • Flexibility for developers to determine tariffs.
  • Extending project life to 40 years.
  • Increasing the debt repayment period to 18 years.
  • Introducing an escalating tariff of 2%.
• Budgetary Support:
  • Financial assistance for enabling infrastructure such as roads and bridges:
    • ₹1.5 crore per MW for projects up to 200 MW.
    • ₹1.0 crore per MW for projects above 200 MW.

2. Small Hydro Power Programme

• Launched by MNRE: Encourages state governments and private producers to develop small hydro projects to realize the 21,000 MW potential in a phased manner.

Way Forward

• Better Governance Framework: Develop sector-specific strategies with transparent and overarching policies for hydropower generation.
• Benefit-Sharing Framework: Ensure all stakeholders, including local communities, are involved to mitigate resistance to projects.
• Facilitating Private Sector Investments: Increase private participation in hydropower through innovative schemes and financial incentives.
• Facilitate Market Development: Implement initiatives like differential tariff structures for peak and off-load seasons.
• Capacity-Building: Strengthen the technical and managerial capacity of agencies involved in hydropower through modern technologies and skills training.
• Long-Term Financing: Provide long-term loans at cheaper interest rates. Review water cess imposed by states to reduce financial burdens on developers.

 

HYDROGEN & AMMONIA-BASED ENERGY

A hydrogen economy is one that relies on hydrogen as a commercial fuel, delivering a significant fraction of a nation’s energy and services.

• Hydrogen is the lightest and first element on the periodic table.
• At standard temperature and pressure, hydrogen is a nontoxic, non-metallic, odorless, tasteless, colorless, and highly combustible diatomic gas.

Data 1. Hydrogen Share of Hydrogen in Final Energy Consumption: Hydrogen will account for 6% of total final energy consumption by 2050 (IRENA, 2019). Hydrogen Production: Around 120 million tonnes of hydrogen are produced annually, accounting for 4% of global final energy and non-energy use (IEA). Source of Hydrogen Production: Less than 1% of hydrogen is green hydrogen (IRENA’s World Energy Transitions Outlook). Hydrogen Consumption in India: India consumes approximately 5.5 million tonnes of hydrogen annually, mostly derived from imported fossil fuels. 2. Ammonia Cost Efficiency: Ammonia is 32% cheaper than hydrogen and 15% cheaper than methanol. Market Growth: The global green ammonia market is projected to grow from USD 17 million (2021) to USD 5,415 million by 2030.

Types of Hydrogen

1. Grey Hydrogen: Derived from fossil fuels and constitutes the bulk of hydrogen produced today.
2. Blue Hydrogen: Produced from fossil fuels with carbon capture and storage (CCS) options.
3. Green Hydrogen: Generated entirely from renewable power sources.

 

Types of Ammonia

1. Grey Ammonia: Comes from steam reformation of methane, emitting CO₂ as a by-product.
2. Blue Ammonia: Conventional ammonia, but with captured CO₂ to reduce its climate impact.
3. Green Ammonia: Made with hydrogen from water electrolysis powered by renewable energy, offering a sustainable alternative.

 

Advantages

1. Environmental Benefits

• Decarbonization: Hydrogen offers a way to decarbonize sectors like transport, chemicals, and heavy industry (e.g., steel), where emission reduction is challenging.
• Improves Air Quality: Reduces carbon emissions from sectors like transportation and iron/steel production.
• Versatility: Hydrogen serves as a free energy carrier, adaptable to various energy systems.

2. Economic Benefits

• Circular Economy: Facilitates the creation of a circular economy by maximizing resource utilization.
• Energy Security: Reduces dependency on oil-based imports, enhancing energy security.

3. Specific Advantages of Green Hydrogen

• Flexibility in Power Systems: Green hydrogen increases power system flexibility and resilience.
• Channeling excess energy: Renewable energy that cannot be stored or used by the grid can be channeled to produce hydrogen.
• Replace coal-based electricity grid: India’s electricity grid is predominantly coal-based and will continue to be so, thus negotiating collateral benefits from a large-scale EV push as coal will have to be burnt to generate electricity that will power these vehicles. 

4. Hydrogen in the Transport Sector

• Effective Vehicles: Hydrogen vehicles are especially effective in long-haul trucking and hard-to-electrify sectors like shipping and air travel.
• Reduce Use of Heavy Batteries: Heavy batteries may be counterproductive, especially in coal-fired electricity-dependent countries like India.
• Environment-Friendly: Hydrogen fuel cell cars have nearly zero carbon footprints.
• Better Efficiency as Fuel: Hydrogen is 2-3 times more efficient than petrol, as electric chemical reactions are more efficient than combustion.
• Limited Rare Metals: Hydrogen reduces the dependency on rare metals required for EV batteries, ensuring a sustainable supply chain.
• Introduces Competition: Hydrogen’s abundance may level competition in the automotive sector, unlike EV batteries, where raw material supplies are controlled by a few major players.

5. Advantages of Hydrogen Fuel Cell Electric Vehicles (FCEVs) Over Battery Electric Vehicles (BEVs)

• Less Charging Time: FCEVs can be refueled in 5 minutes compared to 30-45 minutes required to charge a BEV.
• Better Energy Storage: Hydrogen provides approximately five times better energy storage per unit volume and weight, freeing up space and extending travel distances.

6. Other Benefits

• Synergy with Renewable Energy: Hydrogen enhances renewable energy adoption, especially in industrial applications.
• Reduced Imports: Hydrogen can reduce crude oil imports and help decrease India’s dependence on imported fertilizers by supporting domestic ammonia production.

 

Green Hydrogen Benefits

• Storage: Compressed hydrogen tanks are lightweight and capable of storing energy for long durations, easier to handle than lithium-ion batteries.
• Availability: Can be produced from multiple sources, including gas, coal, wind, water, and biomass.
• Water Generator: Produces water and electricity by reacting hydrogen and oxygen in a fuel cell.
  • Example: Used in space missions to provide crews with sustainable water and electricity.
• Completely Sustainable: Green hydrogen does not emit polluting gases during combustion or production.
• Versatile: Can be transformed into electricity or synthetic gas for industrial, commercial, and mobility purposes.

 

Green Ammonia Benefits

• Lower Production Costs: Cheaper to produce, store, and deliver as NH₃ compared to compressed or cryogenic hydrogen.
• Transport Fuel: Regarded as a carbon-neutral fuel for ships, offering technical and commercial feasibility from storage to shipbuilding costs.
• Reduced Carbon Footprints: Currently, ammonia production accounts for 1.8% of global energy consumption, emitting 500 million tonnes of CO₂ annually.
• Decarbonizing the Food Chain: Green ammonia can be used for producing carbon-neutral fertilizers, decarbonizing food supply chains, and as a future climate-neutral shipping fuel.

 

Issues with Hydrogen and Green Ammonia as Fuels

1. Challenges in Using Hydrogen as a Fuel

• Not Found Freely: Hydrogen does not exist freely in nature and must be extracted from compounds like water.
• Energy-Intensive Extraction Process: Extracting hydrogen is energy-intensive despite being a clean molecule.
• Supply Dependency: Almost all hydrogen is sourced from natural gas and coal, contributing to significant CO₂ emissions annually, equivalent to emissions from countries like Indonesia and the UK.
• Energy Losses: Hydrogen production, transport, and conversion lead to substantial energy losses.
• High Cost: Producing green hydrogen costs $5-6/kg, nearly three times more than grey hydrogen.
• Storage Issues: Transporting and storing hydrogen is expensive, making its logistics impractical.

2. Issues with Hydrogen as a Transport Fuel

• Scale: Globally, only three manufacturers (Honda, Toyota, Hyundai) produce hydrogen fuel cell vehicles. In 2020, there were fewer than 25,000 fuel cell electric vehicles (FCEVs) compared to 8 million EVs.
• Lack of Infrastructure: Fewer than 500 operational hydrogen refueling stations exist worldwide, primarily in Europe, Japan, South Korea, and some parts of North America.
• Safety Concerns: Hydrogen is highly combustible, with an explosion risk even at concentrations of 4%-75%. It is stored at very high pressures (up to 700 bar).
• Technological Limitations: Of the four types of hydrogen storage cylinders available, India manufactures only two lower-quality types, which cannot store highly pressurized hydrogen safely. The other two types are imported.

3. Economic Issues

• Import Dependency: India lacks major manufacturers of electrolyzers (used to split water into hydrogen and oxygen), resulting in expensive imports and uneconomical production costs.

4. Blue Hydrogen

• Carbon Footprint: Blue hydrogen is not inherently carbon-free.
• Development Delays: Carbon Capture, Utilization, and Storage (CCUS) deployment has lagged behind goals set in the past decade.

5. Challenges with Green Ammonia

• Toxic Nature: Ammonia is highly toxic, requiring advanced sensing and safety systems like ventilation and water sprays to mitigate risks.
• Low Energy Density: Liquefied ammonia has lower energy density, requiring tanks that are 4.1 times larger than conventional fossil fuel tanks, leading to potential freight loss.
• Flammability: Although ammonia is flammable, the conditions for ignition (spontaneous ignition temperature and minimum ignition energy) make it safer than other fuels but harder to manage.

 

Initiatives Undertaken

1. Central Government Measures

• National Hydrogen Mission: Announced in the 2021-22 Budget Speech, the mission aims to promote hydrogen production using green power sources.
• Guidelines for Hydrogen Vehicles: The Ministry of Road Transport and Highways issued notifications proposing amendments to the Central Motor Vehicles Rules, 1989, to include safety evaluation standards for hydrogen fuel cell vehicles.
• Green Hydrogen/Green Ammonia Policy: Government support for manufacturing zones and connectivity to the Inter-State Transmission System (ISTS) on a priority basis.
  • Offers free transmission for 25 years if production facilities are commissioned before June 2025.
  • Distribution licensees can procure and supply renewable energy to manufacturers of green hydrogen/ammonia at concessional rates.

 

Initiatives by the Government

1. Priority Access to Grid Connectivity: Green hydrogen/ammonia manufacturers and renewable energy plants will receive priority access to the grid to avoid delays.
2. State-Level Actions:
   • Delhi: In October 2020, Delhi became the first Indian city to run a pilot project for H-CNG buses. These buses use patented technology by Indian Oil Corporation (IOC) to produce hydrogen-enriched CNG directly from natural gas.
3. Public Sector Enterprises:
   • NTPC Limited: Conducting pilot projects to run hydrogen fuel cell electric buses and cars in Leh and Delhi. Considering setting up a green hydrogen production facility in Andhra Pradesh.
   • Indian Oil Corporation: Planning to establish a dedicated unit for hydrogen production at its R&D center in Faridabad.
4. Global Initiatives:
   • Green Hydrogen Catapult (December 2020): A consortium of seven global green hydrogen developers aims to cut production costs and expand annual production to 25 GW by 2026.
   • European Union: Announced plans to install 40 GW of renewable hydrogen electrolyzers by 2030 and produce 10 million tons of renewable hydrogen annually.
   • Saudi Arabia: Investing $5 billion in solar and wind plants to build the world’s largest green hydrogen facility, with a production capacity of 650 tons daily.

 

Way Forward

• Acknowledge Hydrogen’s Role in Energy Transition:
  • Long-Term Strategy: Focus on green hydrogen as a viable energy source for the future.
  • Inclusion in NDCs: Hydrogen should be included in the Nationally Determined Contributions (NDCs) under the Paris Agreement.
  • Stimulating Clean Hydrogen Use:
    • Implement mandatory production targets.
    • Enforce blending with natural gas or renewable energy mandates in the transport sector.
• Promote Clean and Efficient Hydrogen Use:
  • Certification Systems and Regulations: Ensure future hydrogen supply meets climate compatibility standards.
  • International Collaboration: Exchange global best practices in hydrogen use as technologies evolve.
  • Enhance Efficiency: Address inefficiencies in conversion, transport, and storage compared to fossil fuels.
• Scale Up Green Hydrogen Operations in India:
  • Decentralized Hydrogen Production: Enable direct renewable power access for electrolyzers, reducing transportation costs by routing hydrogen from plants directly to refineries.
  • Continuous Renewable Energy Access: Integrate green hydrogen into current energy systems.
  • R&D Investment: Advance hydrogen processing technologies, which are currently in their infancy and require significant investment.
  • Promote Domestic Manufacturing: Develop electrolyzer manufacturing and secure raw materials supply.