Perspective: India’s Green Energy Transition | 31 January, 2024

Summary

The special presentation on Sunset TV discusses India's upcoming interim budget and its potential to accelerate the country's transition to a low carbon economy. The conversation, led by host Kti Mishra, includes insights from Mr. Suban Pipa, CEO of the National Solar Energy Federation of India, and Mr. Manmohan Aasi, group president of SSEL. They delve into India's ambitious renewable energy targets, the push for green mobility, and the significance of green bonds in funding the energy transition. The panelists also highlight the importance of smart grids, biofuels, and the National Green Hydrogen Mission. The discussion underscores India's commitment to achieving its Paris Agreement goals and the economic opportunities presented by the shift to clean energy.

Takeaways

• 📈 **India's Renewable Energy Target**: India has set a target of achieving 500 GW of renewable energy capacity by 2030 as part of its commitment under the Paris Agreement.
• 🏠 **Solar Energy for Households**: Prime Minister Narendra Modi announced plans to install solar panels on 10 million houses, which could significantly boost India's rooftop solar sector.
• 💡 **Distributed Solar Proliferation**: There is a focus on not just the growth but also the spread of solar energy across the country, emphasizing distributed solar proliferation.
• 🔌 **Electrical Grid Infrastructure**: The government is creating a dedicated evacuation infrastructure for green energy and is pushing for a smart grid to integrate renewable energy seamlessly.
• 🚗 **Green Mobility**: There is a significant growth in the electric vehicle market, indicating a commitment towards green mobility from both the government and private sector.
• ⚖️ **Challenges in Manufacturing**: Indian manufacturers face challenges in obtaining competitive technology due to China's embargo on supplying equipment and technology to other countries.
• 💰 **Funding and Financial Support**: The discussion highlighted the need for accessible funding methods, such as promoting green bonds, to support the energy transition.
• 🌱 **Biofuels and Co-generation**: There is potential to double the current biomass and co-generation capacity with the right incentives and focus on technology advancements.
• 💡 **National Green Hydrogen Mission**: The mission aims to produce 5 million metric tons per annum of green hydrogen, with significant investment and job creation potential.
• 🔋 **Energy Storage and Smart Grids**: The importance of energy storage capacity and the development of smart grids for the integration of renewable energy into the grid was emphasized.
• 🌐 **Global Biofuel Alliance**: India, as a G20 chair, is leading an initiative to expedite the global uptake of biofuels, which is expected to influence India's energy mix.

Q & A

What is the significance of the 22nd of January 2024 in India's renewable energy sector?

The 22nd of January 2024 is significant because it marks the announcement by Prime Minister Narendra Modi of a plan to install solar panels on 10 million houses, emphasizing India's commitment to solar energy proliferation and growth.

What is India's target for renewable energy capacity by 2030?

India has set a target of achieving 500 gigawatts (GW) of renewable energy capacity by 2030 as part of its commitment under the Paris Agreement.

What is the current solar energy capacity of India?

As of the time of the discussion, India's solar energy capacity has grown to 73 gigawatts (GW), with expectations to cross 100 GW in the next 12 to 13 months.

What are the expectations from the interim budget in terms of incentives for solar energy?

The industry is expecting provisions in the interim budget that could include subsidies or special incentives for consumers at lower consumption levels, as well as additional subsidies to make solar energy more attractive for citizens to adopt.

How does the panelist, Mr. Pulipaka, envision the impact of achieving the target of 10 million households with rooftop solar?

Achieving the target of 10 million households with rooftop solar would be equivalent to the combined total installed rooftop solar of the top four countries, which would significantly boost India's rooftop solar sector and lead to an estimated 30,000 megawatts of solar energy.

What is the current status of high-efficiency solar PV modules in India?

High-efficiency solar PV modules have been supported by the Production Linked (PL) scheme in India, which has been successful. By the end of the year, it is expected that the PL tranche one and two modules will be available, contributing to India's establishment as a global superpower in solar manufacturing.

What are the challenges faced by the solar panel manufacturing sector in India?

The challenges include difficulty in obtaining competitive and efficient technology due to China's embargo on supplying equipment and technology to other countries, especially India. Additionally, there is a need for macro-level support from the government, such as plug-and-play infrastructure and accessible funding methods like green bonds.

How does Mr. Rasti perceive the role of green bonds in achieving India's renewable energy targets?

Mr. Rasti believes that green bonds can play a significant role in funding renewable energy projects. He suggests that India should capitalize on green bonds, redefine the green taxonomy, and promote accessible funding methods to accelerate the energy transition.

What is the National Green Hydrogen Mission's objective?

The National Green Hydrogen Mission aims to achieve a production capacity of 5 million metric tons per annum of green hydrogen, with an investment of over 8 lakh crore rupees and the potential to create 600,000 jobs.

What are the expectations from the interim budget regarding biofuels?

The panelists expect a major announcement for promoting biofuels in India's energy mix, possibly including incentives to increase ethanol blending in petrol and support for biomass and co-generation technologies.

How does the development of smart grids and energy storage capacity contribute to the integration of renewable energy into the grid?

Smart grids and energy storage capacity are essential for the seamless integration of renewable energy into the grid. They allow for better grid management, efficient energy distribution, and the ability to store excess energy for later use, which is crucial for maintaining grid stability and reliability.