By Aena Rawal
Abstract
India presented five core aspects of climate action, Panchamrit, including reaching a non-fossil energy capacity of 500 GW and achieving 50% of energy needs from renewables by 2030. They aim to reduce one billion tonnes of global carbon emissions by 2030, lower carbon intensity by 45% from 2005 levels, and achieve net-zero emissions by 2070. To accomplish these goals, India focuses on solar energy policies, electric vehicle policies, and the Green Hydrogen Scheme, acknowledging the importance of decarbonizing the energy sector to meet increasing energy demands sustainably. Despite being the world’s fourth-largest renewable energy producer, challenges need to be addressed to ensure the successful attainment of these targets. This article critically analyzes the challenges in these sectors.
Solar Energy Dream
India is dedicated to reducing its reliance on fossil fuels and moving towards a more environmentally friendly future. Solar energy has the potential to reduce India’s dependence on coal for power generation. The National Solar Mission by the Indian government and state governments encourages sustainable development and addresses the country’s problem with energy security. To encourage rooftop solar power installations in India, the Sustainable Rooftop Implementation of Solar Transfiguration of India (SRISTI) plan has been launched. The Ministry of New and Renewable Energy (MNRE) introduced the PM-KUSUM program to encourage the development of off-grid solar pumps in rural regions and lessen reliance on the grid. The International Solar Alliance (ISA) is a forum for increasing the adoption of solar energy technology that is member-driven, action-oriented, and collaborative. Its primary goals are to support energy access, guarantee energy security, and promote energy transition in the nations that make up its membership. To mobilize efforts against climate change via the use of solar energy solutions, India and France together developed the International Solar Alliance (ISA). Between March 2014 and March 2021, the installed capacity of solar energy expanded by more than eighteen times, from 2.63 GW to 49.3 GW. India has increased its solar power capacity by 12 GW through November 2022. The government included $2.57 billion (Rs. 19,500 crores) in the budget for a PLI program (Production Linked Incentives) to increase the production of high-efficiency solar modules.
Government must review these challenges:
The levelized cost of solar energy is thought to be decreasing. And it is assumed that it will do so linearly over time. It is the same everywhere, it only considers the cost of solar panels, it excludes maintenance costs, and it ignores the cost of energy storage. The levelized cost accounts for all components of a solar power system, not just the cost of solar panels, and considers all costs associated with installation and maintenance as well as changes in market conditions and government regulations. Solar energy is made financially feasible by omitting the expense of storage batteries, impeding it with front-loaded government subsidies and concessions, and imposing it on industry and hapless discoms by state policy. Despite solar technology becoming more affordable, many households and companies may still find it difficult to embrace because of the hefty installation costs. It can be difficult for people and organizations to invest in solar energy due to the restricted access to financing for renewable energy projects, especially for smaller and rural projects. It may be challenging to transfer the power produced by solar panels to the locations where it is needed due to a lack of suitable infrastructure and grid connectivity. In India, it might be difficult to find adequate land for large-scale solar installations, especially given the conflicting needs for land for other uses like agriculture and urban expansion. As a result, the GoI implemented the solar park project. By 2022, the GoI intends to build 40 GW of solar farms. Under this scheme, the park developer (a joint venture between a State Government nodal agency and a Central Government nodal agency/private player) is responsible for identifying and acquiring land, obtaining clearances, constructing common infrastructure, supplying water, establishing a transmission network from the park to the nearest grid substation, and so on, thereby lowering development risk for solar project developers. Wind turbines and solar panels are intermittent renewable energy resources, making their power output more erratic and unpredictable. Because of this, grid operators might resume using fossil fuels. This issue hinders the deployment of renewable energy over time and raises emissions and expenses in the short term.
Ensuring Sustainable Mobility
Electric cars (EVs) have the potential to address several interconnected issues, including air pollution, the depletion of non-renewable energy sources, growing oil costs, oil imports, and the need for “green” development.
Currently, the transportation sector is responsible for approximately 20 percent of the world’s total CO₂ emissions, making it the second-largest contributor to carbon pollution on a global scale. According to Council On Energy, Environment, And Water projections, the demand for passenger service in India in four-wheelers is expected to rise significantly over the next three decades due to increasing income levels. The modal share of four-wheelers in motorized passenger service is predicted to surge from 9 percent in 2020 to an impressive 45 percent in 2050. The rise in the number of four-wheelers and the decline in the use of mass transportation will have profound implications for India’s transport sector concerning energy consumption, emissions, congestion, and infrastructure needs.
The Indian government has put in place some programs to encourage the usage of electric cars (EVs). These consist of:
1. A government program called FAME I & II: Faster Adoption and Manufacturing of Hybrid and Electric Vehicles offers financial incentives for EV purchases and the construction of charging stations.
2. By 2030, at least 30% of the cars on Indian roadways are expected to be electric according to the National Electric Mobility Mission Plan (NEMMP), which was introduced in 2020.
3. To encourage local manufacturing and support international businesses to participate in the Indian market, the government has established a Production Linked Incentive (PLI) plan.
4. To encourage the usage of electric vehicles, battery manufacturing facilities are being established in India.
5. By offering financial aid to states for the purchase of electric buses, the government has also made efforts to encourage the use of electric cars in this area. For instance, Delhi’s E-buses.
6. The government has plans to replace current government cars with electric vehicles to encourage the usage of electric vehicles in the public sector.
7. Phased Manufacturing Program (PMP): Through a graduated duty structure, indigenous production of electric vehicle assemblies, sub-assemblies, and parts will be fostered over time.
8. Government initiatives for revolutionary mobility and phased manufacturing programs for electric cars, electric vehicle components, and batteries are part of the National Mission on Transformative Mobility and Storage.
9. The Automotive Research Association of India is researching electric vehicle trends in India and fast-changing technologies as per Indian market needs.
Barriers to consider:
Many people find it difficult to acquire EVs since they are still more expensive than conventional gasoline-powered cars. EV users find it challenging to travel over large distances because of the lack of charging infrastructure. However, policymakers have planned to install 100,000 charging stations by 2027 to accommodate the ~1.4 million EVs on the road. There have been rare instances where EVs have caught fire, raising concerns about their safety. India is dependent on imports since it lacks the domestic production capacity for batteries (that require metals like lithium, magnesium, cobalt, and nickel) and electric car parts. The general population in India still does not fully understand the advantages of EVs. The government is taking action to solve the issues that are impeding the growth of the EV industry by stepping up efforts.
At Nascent Stage: Green Hydrogen Aims
GH is not only a more environmentally friendly alternative to natural gas (which we mostly import), but it also serves as a suitable energy storage option, which helps balance the fluctuating power supply from solar and wind. Now, coal generators, natural gas, and our meager hydropower supplies cover the gap. In “hard to abate” industrial uses like the production of steel and fertilizer, GH can also replace coal. Due to its energy density being three times that of diesel and 3.5 times that of heavy fuel oil, it is also a good fuel for shipping and other heavy road freight vehicles.
The National Green Hydrogen Mission, funded by the Union Government at Rs 19,744 crore, intends to establish India as a “global hub” for the use, production, and export of green hydrogen. Aiming to make India a net exporter of fuel, the program would encourage the commercial production of green hydrogen. It will provide funding for the domestic production of electrolyzers and generate clean hydrogen. Green Hydrogen Hubs will be built in states and areas that can sustain large-scale hydrogen generation and/or consumption. By 2030, India should have at least 5 MMT (million metric Tonnes) of annual green hydrogen production capability and 125 GW (gigawatts) of additional renewable energy capacity is one of its primary objectives. The project intends to include investments totalling more than Rs 8 lakh crore and is anticipated to provide six lakh jobs. Also, it would result in a cumulative decrease of over Rs 1 lakh crore in fossil fuel imports and almost 50 MT in yearly greenhouse gas emissions. One of the cleanest energy sources, green hydrogen, has almost no emissions. It may be used for energy-intensive businesses including steel and fertilizer production and fuel cells for automobiles. Worldwide efforts are being made to develop green hydrogen capability since it may both increase energy security and reduce carbon emissions. Furthermore, India’s need for hydrogen would more than double by the year 2050.
Challenges to examine here:
Green hydrogen faces challenges due to inadequate research and development, widespread availability of cheaper alternatives like gray hydrogen, uncertainty about its industrial classification per Central Pollution Control Board Directions, expensive production processes, limited distribution, and storage infrastructure, and the necessity to develop suitable technologies for diverse industrial applications.
Way Forward
India’s target to reach 500 GW of installed renewable energy capacity by 2030 is ambitious and demonstrates the country’s commitment to transitioning to cleaner energy sources. However, there are some ambiguities in the pledges, such as the lack of specific targets for emissions reductions and the absence of a clear plan for transitioning away from coal power. Above discussed initiatives are promising in the Indian context; however, their challenges need consideration. Furthermore, first establish a time-constrained national decarbonization plan, with timelines of one, five, or ten years, to promote an orderly and timely transition. This will avoid dependence on non-renewable resources in development, which could result in shortages, inflation, and increased dependency on imports. Second, India has dual objectives: economic growth and decarbonization to meet motives of urbanization, agriculture, developing renewable resources, etc. So, it must develop a national land use plan in collaboration with the states. Third, move promptly to comply with carbon markets. Countries or industries should actively participate in emissions trading systems and create a marketplace for carbon credits. By putting a price on carbon emissions, carbon pricing incentivizes emitters to explore cleaner and more sustainable practices to avoid additional costs, leading to a reduction in overall greenhouse gas emissions.
Author’s Bio
Aena Rawal is a Public Policy Masters student at Jindal School of Governance and Public Policy with a passion for State and Government policies, Urbanism and Sustainable Development.
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