India's Green Energy Dilemma

What does the Green Energy Paradox entail?

The phrase denotes a paradox where renewable energy potential exists but remains unexploited because of structural obstacles. In India, although renewable supply capacity is growing swiftly, demand-side absorption, economic sustainability, and policy frameworks are not keeping pace.

Current Status (India’s Energy Coal Dependency: Coal and lignite continue to account for approximately 79% of domestic energy (FY23).

Low RE Share: When excluding large hydro, renewable sources make up only 3.8% of the domestic Mix & Renewables.

Import Reliance: India is vulnerable due to over 85% of oil and 50% of gas being imported.

Idle Capacity: 44 GW of renewable energy capacity is at a standstill due to the absence of Power Purchase Agreements, even though it is ready for deployment.

Reliability Shortfall: Power outages (SAIDI ~600 mins/year) drastically surpass regional counterparts (Thailand 35, Malaysia 46).

Actions Already Undertaken:

National Solar Mission & Hybrid Policy: Broadened solar initiatives and encouraged wind-solar integration to mitigate intermittency issues.

India Semiconductor Mission (ISM): Enhances the electronics and storage ecosystem, indirectly aiding in renewable energy integration.

PLI for batteries: Encourages local production of storage solutions to lower expenses and reliance on imports.

Renewable Purchase Obligations (RPOs): Require states to obtain a portion of electricity from renewable sources.

Green Open Access Regulations 2022: Permit industries to circumvent discoms and purchase renewable energy directly.

National Green Hydrogen Mission: Advocates for hydrogen as a sustainable fuel and long-term storage solution, enhancing renewable energy use.

Path Ahead – Specific Adjustments:

Improve Storage Environment

Increase Viability Gap Funding for battery storage.

Promote pumped hydro and local battery production through PLI initiatives.

Speed Up Demand Electrification

Encourage electric vehicle uptake through charging facilities.

Promote electric cooking and industrial heating to broaden the RE demand spectrum.

Intelligent Grid and Market Adjustments

Install smart meters across the country for immediate load management.

Shift from inflexible must-run regulations to a market-driven renewable energy deployment.

Reform of Discoms

Accountable financial reorganization.

Implement cost-based tariffs and minimize political influence.

Varied RPO Pathways

RPOs tailored to each state, factoring in local grid capacity and resource accessibility.

Summary:

India's renewable dilemma illustrates that energy transition involves not only generation capacity but also systemic absorption and reforms on the demand side. Without enhancements in grid flexibility, storage, and discom viability, renewable energy will continue to be stranded. To achieve its climate and economic objectives, India needs to shift from adding capacity to utilizing capacity, ensuring that green growth is aligned with affordability, reliability, and security.