Is it imperative or an option to develop an efficient renewable energy waste management and circular ecosystem?

In this year’s budget speech, Finance Minister Nirmala Sitharaman emphasized the role of clean technologies such as solar power and batteries in India’s future economic growth. In addition, he mentioned the importance of transitioning from the existing linear economy to a circular economy.

market forecast

The call for building a circular economy is important as an efficient waste management ecosystem will be essential for managing the massive waste generated by renewable energy projects in the coming decades. According to the International Renewable Energy Agency (IRENA) – an intergovernmental organization that supports countries in their transition to a sustainable energy future – the cumulative waste generated from India’s total installed solar capacity could be as high as 325 kilotons by 2030. A consulting firm, JMK Research & Analytics, estimates that the market for battery recycling will be around 23 gigawatt hours (GWh) by 2030. The spread of a circular economy may also partially isolate these industries from potential supply chain shocks resulting from external developments.

A study by the Council for Energy, Environment and Water (CEEW) has estimated that India will need 5,630 GW of solar and 1,792 GW of wind power in the year 2070 to achieve its net-zero target. A strong renewable waste management and recycling ecosystem can help people and India reduce environmental damage, provide energy security and create new jobs. So, here are six steps to nurture a circular economy in the Indian renewable energy industry.

a clear framework

First, policy makers should revise existing electronic waste management regulations to bring various clean energy components under their purview. These rules are based on Extended Producer Responsibility which identifies constituent producers as the entities responsible for the management of their waste products. The Indian renewable energy industry has a complex structure consisting of various manufacturers, assemblers, importers and distributors. Therefore, the revised regulations should clearly define the responsibilities of the various stakeholders involved in the renewable energy value chain and provide annual targets for collection and recycling of waste.

Second, the dumping and burning of various components should be banned. Currently, in the absence of any regulation, landfilling is the cheapest and most common practice to manage renewable energy waste. However, it is not environmentally sustainable. All clean energy technologies thrive on metals and non-metals with varying levels of toxicity. If waste equipment is thrown out in the open, these elements can seep into the environment and enter the food chain. Studies show that the leaching of heavy metals such as lead and cadmium from solar photovoltaic modules can increase up to 90% and 40%, respectively, under acidic conditions. In addition, burning of the polymeric encapsulant layer in solar photovoltaic modules releases toxic gases such as sulfur dioxide and some volatile organic compounds.

R&D is essential

Third, the renewable energy industry should invest in the research and development of recycling technologies. Recycling is a multi-step process that includes dismantling, disassembly and extraction. Dismantling is largely a manual process that is sometimes automated. Disassembly can be done mechanically, thermally or chemically. In addition to these traditional methods, investment in research and development can help discover new methods of recycling that result in higher efficiency and a less environmentally harmful footprint. Industries should also explore technology transfer with global recycling firms for setting up domestic waste recycling facilities. For example, efficient metal recovery from waste provides a flexible supply of raw materials for the renewable energy manufacturing industry.

Finance, focus on quality

Fourth, innovative financing avenues have to be created for waste management. Access to finance is a major barrier for players in the recycling ecosystem. The central government should encourage public and private sector banks to charge lower interest rates on loans disbursed for setting up renewable energy waste recycling facilities. Assurance of minimum waste quantity to run these facilities and issuance of performance-based green certificates to recyclers, which can be traded to raise funds for waste management, will also help in reducing the financial burden. A market can also be created for recycled materials through mandatory purchases by renewable energy and other relevant manufacturing industries.

Fifth, product design and quality need to be improved. Renewable energy component manufacturers should explore alternatives to toxic metals such as cadmium and lead used in their products and simplify product design to reduce recycling steps. Such improvements in process efficiency can go a long way in preventing waste build-up at the source and its subsequent impact on the environment.

Sixth, the central and state governments should set stringent quality control standards for the components used in their tenders. This will prevent premature wear of the components and the resultant waste build up. Substandard components generate considerable waste due to early life damage that is often irreparable, and components often have to be discarded. Such quality enforcement can also establish India’s renewable energy industry as a global supplier of quality products.

largely in the informal sector

The renewable energy recycling ecosystem has a complex structure involving many actors, but it will be an integral part of our journey towards a sustainable future. Beyond sustainability, it will also provide quality employment opportunities for future generations as new jobs will be created across the entire value chain of waste management and recycling. In addition, workers in the informal sector can access various socio-economic benefits and look forward to a better quality of life. We must remember that much of India’s recycling sector is informal and workers have to work in unsafe environments without standardized wages. Therefore, it is imperative to develop an efficient renewable energy waste management and circular ecosystem rather than an alternative. We can ignore it, but only at our own risk.

Akanksha Tyagi is a Program Associate at the Council for Energy, Environment and Water (CEEW), an independent non-profit policy research institute. Views expressed are personal

• In this year’s budget speech, Finance Minister Nirmala Sitharaman emphasized the role of clean technologies such as solar power and batteries in India’s future economic growth.

• India will need 5,630 GW of solar and 1,792 GW of wind power to achieve its net-zero target in the year 2070.

• Much of India’s recycling sector is informal and workers work in unsafe environments without standardized wages.