Energy infrastructure in India

 

1. Power is one of the most important parts of infrastructure. It's important for countries' economic growth and well-being. For the Indian economy to continue expanding, it is necessary to have and develop adequate infrastructure.
2. In India, the term "Power Sector" refers to the production, transmission, and distribution of electricity to end users. In India, the companies that produce electricity are referred to as GENCOS, the companies that transmit are TRANSCOS, and the companies that distribute are DISCOMS. India's power sector is heavily regulated by the Central Electricity Regulatory Commission.
3. India's power sector is one of the world's most diverse. From conventional sources like coal, lignite, natural gas, oil, hydropower, and nuclear power to viable non-conventional sources like wind, solar, and agricultural and domestic waste, power generation options abound.

 

Key facts and information about the energy sector in India:

1. Energy Mix: India's energy mix is dominated by fossil fuels, particularly coal, which accounts for around 55% of the country's total primary energy consumption. Oil and gas make up around 33%, while renewable energy sources such as hydro, wind, solar, and biomass account for around 12%. India is the third-largest consumer of oil and coal in the world.
    

   

 

2. Electricity Generation: India is the world's third-largest producer of electricity, with an installed capacity of over 383 GW as of October 2021. Thermal power plants, which use coal and natural gas, account for around 65% of the total installed capacity, while renewable energy sources such as wind, solar, hydro, and biomass account for around 37%.
3. Electricity Access: Despite being a significant producer of electricity, India has a significant population without access to electricity. As of 2020, around 7% of the population, or around 94 million people, did not have access to electricity. The government has launched several initiatives to improve electricity access, such as the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) scheme, which aims to provide electricity connections to all households in the country.
4. Renewable Energy: India has set a target of achieving 175 GW of renewable energy capacity by 2022 and 450 GW by 2030. The country is making significant progress towards achieving these targets. As of October 2021, India had an installed renewable energy capacity of over 98 GW, accounting for around 27% of the country's total installed capacity. Solar energy is the fastest-growing source of renewable energy in India, with an installed capacity of over 47 GW as of October 2021.
5. Energy Security: India's growing energy demand has made the country increasingly dependent on imports of oil and gas. In 2020-21, India imported around 82% of its crude oil and 45% of its natural gas requirements. The government has launched several initiatives to enhance energy security, such as the International Solar Alliance, which aims to promote the use of solar energy in member countries.

 

Energy infrastructure in India:

1. Power Generation: India has an installed power generation capacity of over 383 GW as of October 2021. Thermal power plants, which use coal and natural gas, account for around 65% of the total installed capacity, while renewable energy sources such as wind, solar, hydro, and biomass account for around 37%.
2. Transmission and Distribution: India's transmission and distribution system is owned and operated by several government-owned entities such as Power Grid Corporation of India Limited, State Electricity Boards, and private companies. The transmission and distribution system suffers from inadequate infrastructure and losses during transmission and distribution.
3. Oil and Gas Pipelines: India has an extensive network of oil and gas pipelines for the transportation of crude oil, natural gas, and petroleum products. The pipeline network is owned and operated by several government-owned entities such as Indian Oil Corporation Limited, GAIL (India) Limited, and private companies.
4. Refineries: India has 24 refineries with a combined capacity of over 249 million metric tonnes per annum (MMTPA) as of 2021. The refineries are owned and operated by several government-owned entities such as Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and private companies.
5. Renewable Energy Infrastructure: India has made significant progress in promoting renewable energy infrastructure. As of October 2021, the country had an installed renewable energy capacity of over 98 GW, accounting for around 27% of the country's total installed capacity. The government has launched several initiatives to promote renewable energy infrastructure, such as the National Solar Mission and the Wind Energy Mission.
6. Smart Grids: India is also investing in smart grid infrastructure to improve the efficiency and reliability of the electricity grid. The government has launched several initiatives, such as the Smart Grid Mission, to promote the development of smart grid infrastructure in the country.

 

Challenges faced by the energy sector in India:

1. Energy Access: Despite significant progress in recent years, India still faces challenges in ensuring universal access to energy. According to the International Energy Agency, around 240 million people in India still lack access to electricity. This lack of access to energy impacts the socio-economic development of the country.
2. Energy Security: India is heavily dependent on imports for its energy needs. According to the Ministry of Petroleum and Natural Gas, India's crude oil import dependency has increased from 77.3% in 2014-15 to 85.8% in 2019-20. This dependence on imports makes the country vulnerable to global price fluctuations and geopolitical risks.
3. Environmental Sustainability: The energy sector is a major contributor to greenhouse gas emissions, which contribute to climate change. According to the Global Carbon Project, India was the third-largest emitter of carbon dioxide in 2019, accounting for 6.6% of global emissions. The challenge for the energy sector is to promote economic growth while ensuring environmental sustainability.
4. Infrastructure: The energy sector in India faces infrastructure challenges such as inadequate transmission and distribution infrastructure, inefficient storage systems, and inadequate refining capacity. According to the Ministry of Power, the peak demand deficit in India was 0.5% in 2019-20, indicating a need for additional infrastructure development.
5. Financing: The energy sector requires significant investments to meet the growing demand for energy and to promote sustainable development. However, financing remains a challenge due to the high capital costs associated with energy projects and the limited availability of funding.

 

Some Other issues:

1. India's power sector is plagued by fuel shortages, high AT&C losses, a differential tariff structure, and delays in tariff revisions.
2. The capacity to generate electricity has increased over time, but the actual generation of electricity has not kept up. The following are major causes of the low utilization of generation capacity: lack of fuel, particularly coal, renders Power Purchase Agreements unviable.
    

 

Achievements of Indian energy sector

1. Record Low Solar Tariffs: In July 2020, India achieved a record low solar tariff of INR 2.36 per kilowatt-hour (kWh) in an auction conducted by Solar Energy Corporation of India. This is the lowest solar tariff achieved in India and the world to date.
2. Solar Energy Capacity: India has achieved significant progress in promoting solar energy capacity. As of October 2021, the country had an installed solar energy capacity of over 45 GW, which accounts for around 14% of the country's total installed capacity.
3. Wind Energy Capacity: India has also made significant progress in promoting wind energy capacity. As of October 2021, the country had an installed wind energy capacity of over 41 GW, which accounts for around 13% of the country's total installed capacity.
4. UJALA Scheme: The Unnat Jyoti by Affordable LEDs for All (UJALA) scheme was launched by the government of India in 2015 to promote the use of energy-efficient LED bulbs. The scheme has been successful in promoting the use of energy-efficient LED bulbs, resulting in significant energy savings.
5. Energy Efficiency Initiatives: The government of India has launched several energy efficiency initiatives, such as the Perform, Achieve, and Trade (PAT) scheme, which aims to improve energy efficiency in energy-intensive industries. Under the scheme, industries are given energy efficiency targets, and those that exceed the targets can trade the excess energy savings as certificates.
6. Electric Vehicles: India has launched several initiatives to promote electric vehicles (EVs). In March 2021, the government announced a PLI (Production-Linked Incentive) scheme for EVs and advanced battery technologies, with a total outlay of INR 18,100 crore. The scheme aims to promote domestic manufacturing of EVs and reduce India's dependence on imports.

 

The Quest for Self-Reliance In Energy Sector
 

 

1. India isn't energy autonomous. It imports energy for more than Rs 12 lakh crore.
2. By 2047, the government intends to achieve energy independence prior to the 100th anniversary of independence.
3. The Indian government has already begun its green hydrogen journey as green power takes precedence in global affairs.
4. Alternate energy sources, such as renewable power, hydrogen, and the switch to electric vehicles from gasoline- and diesel-powered automobiles, are crucial for a nation that is 85% dependent on imports to meet its oil and 50% on imports to meet its gas needs.
5. We need to take these initiatives for energy independence to the next level, including adoption, EVs, Mission Hydrogen, solar energy, and solar energy.
6. After the United States, Brazil, the European Union, and China, India produces the fifth most ethanol globally. Ethanol is mostly consumed worldwide, but countries like Brazil and India also use it to make gasoline.
7. A green and sustainable economy is built on the foundation of self-reliance through green energy initiatives. Clean energy and its accessibility to all individuals and businesses are the primary focus of green energy initiatives.

 

Solar energy in India
 

 

India has made significant progress in the solar energy sector over the past decade. The country has set an ambitious target of achieving 100 GW of solar energy capacity by 2022, which was later increased to 450 GW by 2030.

1. Installed Capacity: As of January 2022, India's total installed solar power capacity was 50.33 GW, accounting for around 10% of the country's total installed power capacity. The country added 6.54 GW of solar power capacity in 2021 alone.
2. Auctions: The Indian government has been promoting solar energy through competitive auctions. The auctions ensure transparency and price discovery in the procurement of solar power. According to the Ministry of New and Renewable Energy, the lowest tariff discovered through solar auctions in India was Rs 1.99 per unit (around $0.027) in December 2020.
3. Rooftop Solar: The Indian government has been promoting rooftop solar installations to promote decentralized energy production and reduce transmission losses. As of December 2021, the total installed capacity of rooftop solar was 7.6 GW.
4. Policies and Initiatives: The Indian government has launched several policies and initiatives to promote solar energy, including the National Solar Mission, Solar Park Scheme, Solar Rooftop Scheme, and Kisan Urja Suraksha evam Utthan Mahabhiyan (KUSUM) Scheme. The government also provides financial incentives such as subsidies, tax incentives, and concessional financing to promote solar energy.
5. Manufacturing: India has been focusing on promoting domestic manufacturing of solar panels and other components to reduce dependence on imports. The government has launched several initiatives such as the Production-Linked Incentive (PLI) scheme to promote domestic manufacturing.

Wind energy sector in India
 

 

India has one of the largest wind energy markets in the world, with significant potential for further growth. The country has set an ambitious target of achieving 60 GW of wind power capacity by 2022, which was later increased to 140 GW by 2030.

1. Installed Capacity: As of January 2022, India's total installed wind power capacity was 40.57 GW, accounting for around 8% of the country's total installed power capacity. The country added 3.18 GW of wind power capacity in 2021 alone.
2. Auctions: The Indian government has been promoting wind energy through competitive auctions. The auctions ensure transparency and price discovery in the procurement of wind power. According to the Ministry of New and Renewable Energy, the lowest tariff discovered through wind auctions in India was Rs 2.77 per unit (around $0.038) in February 2020.
3. Policies and Initiatives: The Indian government has launched several policies and initiatives to promote wind energy, including the National Wind-Solar Hybrid Policy, Wind-Solar Hybrid Park Scheme, and Kisan Urja Suraksha evam Utthan Mahabhiyan (KUSUM) Scheme. The government also provides financial incentives such as subsidies, tax incentives, and concessional financing to promote wind energy.
4. Manufacturing: India has been focusing on promoting domestic manufacturing of wind turbines and other components to reduce dependence on imports. The government has launched several initiatives such as the Production-Linked Incentive (PLI) scheme to promote domestic manufacturing.
5. Offshore Wind Energy: India has significant potential for offshore wind energy development along its coastline. The government has set a target of achieving 5 GW of offshore wind power capacity by 2022 and has launched several policies and initiatives to promote offshore wind energy.

 

Challenges To Renewable Energy Development In India

1. Land acquisition: Land acquisition is a significant challenge in India, particularly for renewable energy projects. Many renewable energy projects require vast tracts of land, which can be challenging to acquire due to complex land ownership structures, land-use policies, and inadequate compensation for landowners.
2. Grid integration: Integrating renewable energy into the grid is a significant challenge in India. The country's power grid is outdated and unable to handle the intermittent nature of renewable energy sources. This results in curtailment of renewable energy output and lower capacity utilization.
3. Financing: Financing renewable energy projects is a challenge in India, particularly for small-scale projects. Financial institutions are often hesitant to lend money for renewable energy projects due to the perceived risks associated with these projects.
4. Policy and regulatory framework: India's policy and regulatory framework for renewable energy is still evolving, and there is a lack of consistency in policy implementation at the state and national levels. This creates uncertainty for investors and slows down project development.
5. Infrastructure: Inadequate infrastructure, including roads and transmission lines, is another significant challenge to renewable energy development in India. Infrastructure deficiencies can lead to higher costs and delays in project development.
6. Public awareness: There is a lack of public awareness and understanding of renewable energy in India. This can lead to opposition to renewable energy projects and delays in project development.

 

Way forward

1. In order to meet the ever-increasing demand for energy, India must make use of solar, wind, and especially green hydrogen energy in its electricity system.
2. To accommodate inclusiveness in the development process, aspects such as investment, infrastructure development, private-public partnership, green financing, and the policy framework need to be strengthened at both the national and regional levels.
3. Green energy unquestionably promotes sustainable development and has enormous potential to boost income, employment, and entrepreneurship.
4. It creates jobs and generates income, as well as investment opportunities and new product and service markets. As a result, India ought to concentrate on developing both green energy and energy independence simultaneously.

 

Steps taken in this regards

1. UDAY (Ujwal Discom Assurance Yojana) Scheme to tackle AT&C losses. However, post closure of UDAY in 2019, AT&C losses have again risen due to addition of connections in high-loss areas under the Saubhagya scheme.
2. Saubhagya scheme ensures electricity connection to all un-electrified households in rural areas.
3. In 2020, the government announced a plan to set up an inter-ministerial committee under NITI Aayog to forefront research and study on energy modelling. This, along with a steering committee, will serve the India Energy Modelling Forum (IEMF) jointly launched by NITI Aayog and the United States Agency for International Development (USAID)
4. The Government of India has allocated Rs. 111 lakh crore (US$ 1.4 trillion) under the National Infrastructure Pipeline for FY 2019-25. The energy sector is likely to account for 24% capital expenditure over FY 2019-25.
5. The Pradhan Mantri Ujjwala Yojana (PMUY) is a scheme launched by the Government of India in May 2016 to provide clean cooking fuel to households in India. The scheme aims to replace traditional cooking fuels such as firewood, coal, and cow dung with LPG (liquefied petroleum gas) to reduce indoor air pollution and promote health and environmental benefits.

 

In conclusion, India's quest for self-reliance in the energy sector is a long-term goal that requires a comprehensive strategy and concerted efforts from all stakeholders. The country has made significant progress in achieving self-reliance in the energy sector, but there is still a long way to go to achieve complete self-sufficiency.

The government should continue to promote domestic resource utilization, renewable energy, energy efficiency, domestic manufacturing, and research and development to achieve self-reliance in the energy sector.

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