explained | How soon can India move away from coal?

With the demand for electricity increasing, what is the outlook on the renewable energy sector?

With the demand for electricity increasing, what is the outlook on the renewable energy sector?

the story So Far: Tamil Nadu Chief Minister on Friday MK Stalin wrote a letter to Prime Minister Narendra Modi, requested them to ensure adequate supply of coal to the power generating units in the state. In Maharashtra, Deputy Chief Minister Ajit Pawar said the state government plans to import coal to tide over the power crisis. The country’s second top electricity consuming state, Gujarat is also planning to import coal, according to reports. Collapsed coal stocks and the resulting power cuts in many states have raised questions about the ability of renewable energy to replace conventional resources. earlier this week, Coal stocks fall below critical mark in over 100 thermal power plants in India (less than 25% of the required stock) while it was less than 10% in over 50 plants across India. On Saturday, Minister of Coal and Mines, Prahlad Joshi said that at present 72.5 million tonnes (MT) of coal is available at various sources of Coal India, Singareni Colliery and Coal Washeries, and 22.01 MT is available with thermal power plants. ,There is sufficient availability of coal in the countryTo go on for over a month, which is being filled daily with record production,” he tweeted.

Is there a coal crisis?

According to Mr. Joshi, coal accounts for 55 per cent of the country’s energy needs. The International Energy Agency’s (IEA) India Energy Outlook 2021 report states that energy use in India has doubled since 2000, with 80% of the demand still being met by coal, oil and solid biomass. However, disruptions related to the pandemic halted coal stocks. Mining operations were halted to prevent the spread of the virus. Despite the gradual easing of operations, mining activities were hampered during the monsoon, leading to delay in stock arrival. Domestic demand for electricity and the advent of summer, coupled with a sudden spurt in economic activity, has resulted in a demand-supply mismatch. The country experienced a similar situation last October, but with the peak of summer, the coal situation is now more worrying as the demand for electricity will be higher. The demand for energy will increase with the increase in urbanization and population. The IEA estimates that India’s demand is expected to grow at around 5% per annum until 2040, despite the shock from COVID-19.

What is the consumption pattern?

Coal is available in abundance, has a short gestation period and the capital cost of coal-fired plants is lower than that of hydropower and nuclear plants, therefore, making it the most viable enabler of energy security in the country. Capacity addition of conventional resources is further facilitated by the increasing participation of the private sector in power generation. Recently in Washington, Finance Minister Nirmala Sitharaman said that India’s move away from coal would be hampered by the war in Ukraine. In the recently concluded budget session, Mr. Joshi said, “Despite the emphasis on renewable energy, [the] The country will need a base load capacity of coal based production for sustainability and also for energy security.

Where does India stand on renewable energy sources?

The Central Electricity Authority’s report on the optimum generation capacity mix for 2029-30 estimates that the share of renewable energy in gross electricity generation is expected to be around 40% by that financial year. The central government has spent Rs 3,793 crore in 2021-22 till March 14 for implementing various renewable energy related schemes and programs.

According to government data, a total of 152.90 GW of renewable energy capacity has been installed in the country till February 28. This includes 50.78 GW from solar power, 40.13 GW from wind power, 10.63 GW from bio-power, 4.84 GW from small hydro power and 46.52 GW from large hydro power. According to the Prime Minister’s announcement at COP26 (2021 United Nations Climate Change Conference), the Ministry of New and Renewable Energy aspires to install 500 GW of electricity capacity from non-fossil fuel sources by 2030.

In 2020-21, according to CEA, a total of 1,381.83 billion units (BU) were generated, of which renewable energy sources accounted for 297.55 BU – which is 21.5% of the total generation. As of August 2021, the share stood at 24%. “Over the next 10 years, robust renewable energy growth is not enough in the face of announced policies to sustain the projected pace of growth in electricity demand, and coal-fired power generation makes a difference,” the IEA said. ..” said the IEA in its report on India.

What are the challenges?

A plant’s capacity does not necessarily translate into actual power generated for the grid, some of it being lost to external factors such as heat or transmission losses. This applies to both renewable and conventional sources.

Solar and wind energy are variable resources in which ‘variability’ is particularly exposed during periods of peak demand. For example, solar energy is available in abundance during the day time in summer. However, household consumption peaks in the evening when we turn on the air-conditioner after returning from work. With no sunlight outside at that time, there is a mismatch between the energy requirement and the supply. Another dimension of this is seasonal variation. Solar energy is barely available in monsoon while wind energy is available in abundance.

Another factor is spatial variability. Areas near coastal areas enjoy more wind and, therefore, have more potential to produce wind power, like Gujarat, than states that experience drought and more sunlight, such as Rajasthan. Therefore, the use of renewable energy will inevitably require a balancing act.

What about transmission and storage?

Transmission and storage are central to addressing variability issues. They help counter the ‘duck curve’ electricity demand among consumers in India. Similar to the duck, the curve is a graphical representation that shows the difference between energy demand and availability during the day. With both wind and solar being variable sources – it becomes imperative to establish a complementary model. This would require optimizing trade between states with import and export technologies as well as those with different demand and production profiles. “Thermal plants in the eastern region, by contrast, provide flexibility for demand centers in the south and west, which have high industrial and agricultural loads and may call on imports during periods of low renewable availability,” the IEA says. Is.

He adds, “India’s national infrastructure is not designed for such high variability in energy production. The grid is accustomed to continuous supply from thermal power plants, as opposed to precarious generation from solar-PV, wind turbines and other renewable energy.

How will the cost factor work?

The transition to renewable energy will depend on energy-efficient practices such as operating ACs for both commercial and home use, more flexibly during the day and choosing energy-efficient products. Cooling systems emerge as a utility during the summer, although usage is split between high- and low-income households, with the former being more financially secure, with the option of running them all day. In this direction, a demand response program will help in resolving such issues while keeping the external factors constant. In addition, lifestyle changes will also be necessary to reduce energy demand; An example here might be Japan’s ‘Cool Biz campaign’ allowing employees to wear light and comfortable clothing at work instead of traditional jackets and ties to reduce the need for air conditioning. According to government data, India has seen record low tariffs of Rs 1.99 per kWh for solar power and Rs 2.43 per kWh for wind power – much cheaper than electricity produced from conventional sources.