Energy is among the most critical component of infrastructure, crucial for the economic growth and welfare of nations. With 31.98 exajoules, India is the world’s third-largest energy consuming country, thanks to the rising industrial, commercial and business activities of all sorts, increasing incomes of the people across all sections of the society and continuously improving standards of their living. Since 2000, energy consumption has doubled with all kinds of developmental activities being on the rise.
In coming years, energy consumptions are sure to go up with millions of Indian households set to buy new appliances with air conditioning units and vehicles of all sorts becoming common for the people with rising income level. To meet the growing energy demand over the years, government of India is taking several measures to step up energy production including green energy.
In this context, budget 2022-23 has a significant role to play with some key announcements for the sector, like Rs 19,500 crore allocation for PLI for high efficiency PV solar modules, Green Hydrogen Mission, Coal Gasification, Battery storage and clean cooking among others.
The gross electricity generated by utilities in India is more than 1,383.5 TWh and the total electricity generation (utilities and non utilities) in the country is more than 1,598 TWh with 99.93% electricity coverage and the share of renewable energy being 21.26%.
Prime Minister Narendra Modi gave a special address at the Plenary Session of a programme namely- “Energy for Sustainable Growth” on March 4, reiterating India’s commitment to climate action and energy transition and discussing the initiatives of the Government of India in the energy and resources sector, announced in the Budget 2022-23 to elicit ideas and suggestions for effective implementation of the initiatives.
Energy for Sustainable Growth not only resonates with the Indian tradition but is a pathway to achieve future needs and aspirations. However, sustainable growth is possible only through sustainable energy sources. Hence, PM Modi reiterated his commitment made at Glasgow to reach Net Zero by 2070, mentioning his vision of LIFE pertaining to an environmentally sustainable lifestyle. A target of achieving 500 gigawatt non-fossil energy capacity and achieving 50 per cent of installed energy capacity through non-fossil energy by 2030 has also been set.
However, along with energy production, energy saving is also equally important for sustainability. Hence, making more Energy Efficient A/C, Efficient heaters, geysers, ovens are essential. In the process of prioritizing energy efficient products, large scale promotion of LED bulbs is being done by the government at large scale, bringing down the cost of LED bulbs by promoting production. 37 crore LED bulbs were also distributed under Ujala scheme. This has led to saving of forty eight thousand million Kilo Watt Hour electricity and saving of about 20 thousand crore rupees in the electricity bills of poor and middle class families. Besides, annual carbon emission has also seen a decline of 4 crore tonnes. Local bodies are also saving six thousand crore rupees every year due to adoption of LED bulbs in street lights.
Coal gasification is a clean alternative to coal. In this year’s budget, for coal gasification, 4 pilot projects have been announced which will help in firming up technical and financial viability of these projects. Similarly, the government is also continuously promoting ethanol blending.
PM Modi also talked about the future upsurge in the energy demand in India, underlining the criticality of transition towards renewable energy and listing a series of steps in this direction such as clean-cooking in 24-25 crore households of India, solar panels on canals, solar tree in household gardens or balconies to possibly get 15 percent energy for the household from the solar-tree. He also suggested exploring micro hydel projects to enhance electricity production.
Solar rooftop systems have been promoted in commercial /industrial/Govt. sector /residential sector through policy and regulatory interventions e.g. mandatory solar provision in the Model Building bye-laws of MoHUA and concessional financing arrangement through Banks/FIs in addition to central financial assistance for residential sector and achievement based incentives to DISCOMs. In addition few States have also made provision of mandatory solar installation for buildings above certain plot area/connected load.
Efforts have been undertaken to strengthen and expand the domestic manufacturing eco-system. Schemes namely PM-KUSUM, Solar Rooftop and CPSU have a precondition of Domestic Content Requirement, directly creating a domestic demand of more than 36 GW solar PV (cells & modules). In order to curb proliferation of imported solar PV cells and modules, a Safeguard Duty was imposed w.e.f. 30 July 2018 for two years. It has been extended for one more year at the rates of 14.90 per cent for imports during 30 July, 2020 to 29 January, 2021, and 14.50 percent for imports during 30th January, 2021 to 29th July, 2021.
India’s wind power potential at hub height of 120 meters is 695 GW. The wind power installed capacity has grown 1.9 times during past 7.5 years to about 40 GW and 9.67 GW of projects are at various stages of commissioning. India has the 4th largest wind power capacity in the world.
In the Independence Day speech on 15.08.2021, Prime Minister announced the launch of National Hydrogen Mission and stated the goal to make India a global hub for Green Hydrogen production and export. The draft National Green Hydrogen Mission document is under inter-ministerial consultations.
In the programmes, industry leaders offered suggestions like support for indigenous manufacturing for solar modules which may be extended to the entire value chain, including subcomponents and materials. It would also give a boost to the growth of ancillary industry, including in MSME sector. The industry also welcomed the recent announcement of banking provisions and ISTS waiver for Green Hydrogen. It was suggested that to further optimize the cost of Green Hydrogen production, a mechanism for Inter-State banking of RE may be considered.
Similarly, incentivising both domestic manufacturing of electrolysers through a PLI mechanism and Green hydrogen end use may also be considered. Solar cooking through both electric and thermal routes may be promoted. Startups have developed hybrid stoves that can work both on gas and solar power, these may also be explored. Rooftop solar promotion efforts may be intensified, given its huge potential. Carbon pricing mechanism would be beneficial for emerging technologies. Government may also consider incentivising Carbon capture and utilization. Circular Economy principles were also discussed which are being considered in MNRE’s committee on the subject.
Source: newsonair.com
