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Indian Railways Outlines Net Zero Journey

WriteCanvas News


The Indian Railways is making significant strides towards achieving net zero carbon emissions by 2030, the Railway Board said.

The Board is striving to achieve net zero status for railway premises nationwide, primarily utilizing renewable sources for energy supply.

It outlined some initiatives in a statement:

  • The Northeast Frontier Railway zone of Indian Railways has successfully converted its buildings to net zero carbon emission structures. The Ministry of Power’s Bureau of Energy Efficiency (BEE) has recognized six net zero energy buildings in the zone with the ‘Shunya Label.
  • From 2014 to 2024, Indian Railways’ solar and wind energy production capacity has significantly increased, surpassing 238 MW and 103 MW respectively, compared to their pre-2014 levels.
  • The IR is utilizing renewable energy to operate trains and power over 1,950 railway stations and buildings across the country.

“These figures demonstrate that under Prime Minister Narendra Modi’s leadership, significant efforts to increase renewable energy production have been made, with Indian Railways contributing substantially to the expansion of solar and wind energy capacities,” the Board said.

It also detailed plans to operate trains using green energy, citing rapid growth in renewable energy production. This will help achieve Net Zero Carbon emissions and contribute to environmental conservation, it said.


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Is India ready to meet 400 GW peak power demand?

Renjini Liza Varghese


The statement of Power Secretary Pankaj Agarwal- India’s peak power demand may surpass the projected 384 GW mark and cross a new level of 400 gigawatts (GW) by 2031-32, didn’t come as a surprise. Each year, India has been recording a spike in power demand.

For example, the peak power demand already reached the 250 GW mark as of 30 May this year.

According to industry experts, the growing economy and rising temperatures will further push the peak power demand in the coming years.

“The way power demand has grown in some states in the last two years, the demand will touch 384 GW and may easily cross 400 GW by 2031-32,” Mr Agarwal said at the CII-Smart Metering Conference.

Can India meet the rising power demand?

One largely unanswered question and the proverbial loose end remains. Is India equipped to meet the growing power demand? This is a serious concern being raised across various forums, and requires careful analysis.

Undoubtedly, the power generation capacity has to double from the current level to meet the peak demand of over 400 GW. Currently, India has a total installed capacity of 444.7 GW. Thermal dominates the pack with 242.9 GW, 193.6 GW of renewables (wind, solar, hydro, biofuel), and 8.1 GW of nuclear capacity.

India has set a target of 500 GW of renewable energy capacity by 2030. In 2023, the government rolled out bids for 50 GW every year to speed up the momentum.

As per a press release from the government (Power and New & Renewable Energy) Minister in December 2023, 132 GW of electricity capacity is under construction, and 517 GW capacity is anticipated to be added by 2031-2032.

Furthermore, the government has stated unequivocally that dependence on coal-based generation is likely to continue until cost-effective energy storage solutions are available. “The country cannot achieve energy security by renewable energy sources alone,” the union ministry said in a press release.

Pegging the power demand:

The demand rise can be pegged to the following reasons:
a) Adding new consumers (December 2023 showed 2.86 crore new consumers)
b) Temperature rise
c) Rapid economic growth
d) e-mobility
e) Industrial growth

The peak demand in FY 2013-14 was 135 GW, which increased to 243 GW in FY 2023-24 (till Nov. 2023). As per the 20th Electric Power Survey (EPS), it is projected to touch 277 GW in FY 2026-27 and 366 GW in FY 2031-32, respectively.

Data:
As per the National Electricity Plan, the installed capacity requirement for the year 2031-32 is likely to be 900.4 GW, comprising 285 GW of fossil capacity (coal & lignite, gas) and 615 GW of non-fossil capacity (nuclear, large hydro, solar, wind, small hydro, biomass, pumped storage projects) along with battery energy storage system or BESS capacity.

The generation planning studies carried out by the Central Electricity Authority (CEA) show that the required coal-based installed capacity will be at 283 GW by FY2032 as against the present installed capacity of 214 GW.

Interestingly, after studying various aspects of renovation & modernization and life extension of coal-based power plants in August 2023, CEA has identified 148 units with a total capacity of 38.2 GW as potential candidates for R&M/LE works.

The authority, in letters dated 20.01.2023 and 07.07.2023, advised thermal power utilities not to retire or repurpose coal-based power stations before 2030 and to ensure thermal unit availability after R&M activities.

Our take:
While measures are being laid to address the rising power and peak power demand, questions are being raised on:

a) the funding requirements
b) the power infrastructure upgradation
c) ensuring uninterrupted power

At this point, I want to reserve my comments as I see more challenges than favourable factors in addressing the peak power demand.


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6 key highlights from the new ESS framework

Sonal Desai


The Ministry of Power has released a detailed framework to reshape the nation’s energy sector, to boost energy storage systems (ESS).

The blueprint includes measures like financial incentives and regulatory revisions to foster ESS. The guidelines also provide a risk-sharing framework for stakeholders involved in energy storage procurement.

Here are the six key highlights from the framework:

1. VGF and Green funds:
One of the most significant proposals within the framework is the introduction of the Viability Gap Funding (VGP). The VGP is aimed at supporting battery energy storage systems (BESS) projects by reducing the levelized cost of storage. The VGF could be up to 40% of the project’s capital cost, with the project commissioned within 18-24 months. This would make BESS a viable option for peak power management and reduce costs for large-scale capacity expansion.

The government can accelerate the establishment of the ESS industry through Concessional Green Finance, sovereign Green Bonds, and long-term loans from financial institutions like PFC, REC, and IREDA, according to the framework.

2. Green jobs:
India’s energy demand surge and shift towards renewable energy sources present opportunities for emerging ESS technologies.

Domestic innovation and manufacturing can stimulate job creation, economic growth, and position India as a global leader in sustainable and low-carbon energy systems.

A Saur Energy report estimates that rapid transition to clean energy could create 1.5 crore new jobs by 2025 from the business as usual scenario.

3. Collaboration and GTM:
Investing in R&D of ESS technologies can enhance efficiency and make them cost-effective for commercial use. Collaboration between academia and industry, a nodal agency, and training institutes can help address the need for long-term research and development.

The Central government plans to allow energy storage systems (ESS) developers and agencies to offer various market-based products, including spot energy markets, capacity markets, and storage. The government also plans to introduce rules for Time of Day Tariff to incentivize ESS adoption. The government may create a PLI Scheme for ESS, issue an approved list of models and manufacturers, and establish a pilot scheme for demonstration projects. Assistance from the Power System Development Fund may be provided for two pilot ESS projects.

4. Energy security:
The Indian Ministry of Power has released guidelines to promote the growth of Pumped Storage Projects (PSPs) and enhance energy security. The guidelines include transparent site selection criteria, self-identification of off-river sites, market reforms, concessionary government land, exemption from free power obligations, rationalization of environmental clearances, and depleted use of mines.

For example, for projects up to 200 MW and for projects over 200 MW, the Central Government is offering budgetary support, including PSPs up to Rs 1.5 crore/MW and up to Rs 1 crore/MW.

5. Storage:
To encourage the best development, the Central Government is promoting a variety of established and developing Energy Storage (ESS) technologies.

To assist utilities, purchasers, and developers in creating ESS projects for the Indian power sector that are both economically feasible and environmentally sustainable, they may announce technology-agnostic bidding guidelines for LDES, SDES, and ancillary services. Both per megawatt hour and composite tariffs may be used in the bidding process.

In addition to facilitating connectivity to intra-state transmission and distribution systems, the Central Electricity Authority and Central Transmission Utility may give priority to connecting Energy Storage Systems (ESS) to the closest Inter State Transmission (ISTS).

6. Circular economy:
To move from a linear to a circular economy, the end-of-life management plan for end-of-life, ESS projects can be included in the bid documents.

By collaborating with businesses that specialize in recycling used batteries, manufacturers can encourage battery reuse and reduce waste. E-waste collection can be facilitated by specialized waste management facilities, and producers now have extended producer responsibility due to the Battery Waste Management Rules, 2022.

Standard operating procedures and a mechanism for reusing ESS parts can be established. It is possible to address environmental issues and guarantee regulatory compliance. Mines that have been abandoned can be converted to hydro storage facilities for PSP development.


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