Hydrogen, as an energy carrier, is becoming crucial for achieving decarbonisation
Published on : Friday 16-02-2024
R P Gupta, Chairman & Managing Director, Solar Energy Corporation of India Limited (SECI)
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What is the present global energy mix, and the current pace of transition, given the fact that global energy consumption is still rising?
As per the World Energy Outlook 2023, current share of the Renewables in the global electricity mix is around 30%. The report estimates that on the basis of current policy settings of governments around the world, the share of renewables is expected to be 50% by 2030.
Further, the report predicts that the share of fossil fuels in global energy supply, which has been stuck for decades at around 80%, will decline to 73% by 2030, with global energy-related carbon dioxide (CO2) emissions peaking by 2025.
As per recent news reports, 2023 saw more than 200 days where new daily global temperature records were set for the time of the year, including Sea surface temperatures. Therefore, stronger measures would be needed to keep alive the goal of limiting global warming to 1.5°C.
While hydropower and nuclear energy are traditional renewable power sources, what potential do solar, wind, hydrogen and other renewable sources hold in the decarbonisation process?
Solar, wind, hydrogen, and other renewable energy sources play a crucial role in the decarbonisation process and are integral components of efforts to combat climate change. The amount of renewable energy capacity added to energy systems around the world grew by 50% in 2023, reaching almost 510 gigawatts (GW), with solar PV accounting for three quarters of additions worldwide, according to IEA’s Renewables 2023.
Hydrogen, as an energy carrier, is becoming crucial for achieving decarbonisation of hard-to-abate sectors. There is global momentum towards hydrogen in general, and green hydrogen – hydrogen produced through electrolysis of water using electricity from renewable sources – in particular.
Now coming to the Indian perspective, as per the National Electricity Plan (NEP) notified by Central Electricity Authority (CEA), the likely installed capacity in India for the year 2031-32 is estimated to be around 900 GW comprising of 304 GW of Conventional capacity and 596 GW of Renewable based capacity along with Battery Energy Storage System (BESS) capacity of 47 GW/236 GWh. The breakup of the projected RE capacity (596G W), as mentioned above, is Large Hydro – 62,178 MW, Solar – 364,566 MW, Wind – 121,895 MW, Small Hydro – 5450 MW, Biomass – 15,500 MW, PSP-26,686 MW.
Further, for NEP projects the storage capacity requirement will be 73.93 GW (26.69 GW PSP and 47.24 GW BESS) with storage of 411.4 GWh (175.18 GWh from PSP and 236.22 GWh from BESS) by the year 2031-32. Similarly, the hydrogen demand can potentially grow more than fourfold between 2020 and 2050, amounting to around 29 million tonnes by 2050.
What emerging technologies show the most promise for decarbonising energy production and consumption? How can innovation and research be accelerated to advance clean energy technologies?
There are a number of emerging technologies which are reliable and can support decarbonisation in energy production and consumption.
However, Solar, Wind and Hybrid Renewable Energy Systems show lot of promise among those, considering that these technologies have achieved commercial viability. Also, technological advancements are necessary for improving the life and efficiency of the existing Renewable Energy Systems. The integration of Renewable Energy (RE) into the power mix is a critical aspect of transitioning toward a more sustainable and low-carbon energy system and Grid Scale Energy Storage Systems are crucial for realizing the same.
Solar Energy Corporation of India Limited (SECI) has come out with innovative models/tenders which will help in achieving these objectives, such as, round-the-clock tenders, peak power tenders, standalone Energy Storage Systems, Firm and Dispatchable RE, Green hydrogen, etc.
Accelerating innovation and research in clean energy technologies is crucial for addressing climate change and achieving a sustainable energy future. This is possible by combining the efforts of policymakers, researchers, and industry leaders thereby creating an environment that fosters innovation, accelerates research, and drives the development and deployment of clean energy technologies.
What solutions are available for energy storage to address the intermittent nature of renewable energy sources? How can energy distribution systems be optimised to reduce losses and increase efficiency?
Renewable energy sources are variable and intermittent in nature and as integration of high volumes of renewables into the grid continues, there would be challenges in-terms of grid security, stability and safety.
Grid scale Energy Storage Systems (ESS) would help in smoothening the renewable generation output and thereby improving the power quality, helping grid stability, etc. There are several energy storage technologies available, broadly – mechanical, thermal, electrochemical, electrical and chemical storage systems, of which Battery Energy Storage System (BESS) and Pumped Storage Projects (PSP) have achieved commercial viability. Further, technological advances are required for the evolution of energy storage systems, making them more efficient, cost-effective, and suitable for long term grid-scale storage.
Further, CEA has projected that by the year 2047, the requirement of energy storage is expected to increase to 2380 GWh (540 GWh from PSP and 1840 GWh from BESS), due to the addition of a larger amount of renewable energy in light of the net zero emissions targets set for 2070.
This will also result in reduction of transmission network congestion and making better use of network infrastructure. In this regard, SECI has come out with innovative models such as, round-the-clock tenders, peak power tenders, standalone BESS, FDRE, etc. SECI has also issued uniquely designed tenders catering to the requirement of the Distribution Companies/Buying Entity(ies). Optimisation of the energy distribution systems is very much essential for large scale integrating of RE System into the Distribution systems. Another suitable solution for reduction of losses and to increase efficiency of the distribution system could be Distributed Generation (DG) and Grid-tied Solar PV Roof-top systems.
Further, technological advances and integration of ESS are required for making them more efficient, cost-effective, and suitable for long term grid-scale storage.
How can existing energy infrastructure be adapted or replaced to support decarbonisation?
Adapting or replacing existing energy infrastructure is essential for supporting decarbonisation and transitioning toward a more sustainable and low-carbon energy system. Renewable Energy and Energy Storage Systems play an important role in decarbonisation.
SECI being one of the Renewable Energy Implementing Agency (REIA) for development of projects towards achievement of National targets has awarded over 60 GW (as on 31.12.2023) of RE capacity to various developers through competitive bidding process. Out of this, already more than 20 GW of capacity has been commissioned and remaining projects are under various stages of implementation (as on 31.12.2023). This includes different innovative tenders that SECI has come out with, like Round-the-clock, Firm and Dispatchable RE, Standalone Energy Storage System, etc., for better integration of RE sources into the energy mix.
These tenders help Distribution Companies/Buying Entity(ies) in efficiently and economically manage their power demands through RE sources thereby supporting decarbonisation.
SECI is also the primary aggregator in the Green Hydrogen sector and it has already issued tenders under Govt’s Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme.
What investments are needed to upgrade and modernise the electrical grid for better integration of renewable energy sources?
The Climate Parliament conceived and developed the Green Grids Initiative (GGI) and presented the idea to world leaders. In 2021, the GGI was launched in partnership with India's One Sun One World One Grid (OSOWOG) during the COP26 World Leaders' Summit.
The Green Grids Initiative aims to accelerate the construction of the new infrastructure needed for a world powered by renewable energy. That infrastructure includes massively expanded renewable energy generation capacity in energy-rich locations, connected by continental grids. It includes smart grids connecting millions of solar panels and charging points for electric vehicles, and micro-grids for rural communities and to ensure resilience during extreme weather.
Further, BloombergNEF estimates that USD 21.4 trillion needs to be invested in electricity grids by 2050 to support a net-zero trajectory for the world.
Coming to the Indian Electricity Transmission Sector, the Government's visionary 'Transmission System for Integration of over 500 GW RE Capacity by 2030' identifies potential renewable energy sites, aligning with sustainable goals. Explore investment horizons in Transmission & Distribution projects, synergising growth and energy efficiency. The 'Revamped Distribution Sector Scheme' (RDSS) further solidifies reliable power supply, with a significant USD 36.74 billion allocation and USD 11.81 billion support from the Central Government. There are other schemes launched by Government of India such as DDUGJY (Deen Dayal Upadhyaya Gram Jyoti Yojana), IPDS (Integrated Power Development Scheme), etc., for strengthening of Distribution Sector leading to better integration of Renewable Energy (RE) Sources. With regards to Inter State Transmission System (ISTS), the power transmission network is planned to be expanded from 4,25,500 circuit kilometer (existing as on 31.05.2020) to 4,54,200 circuit kilometer (ckm) by 2024-25 resulting in addition of nearly 28,700 ckm, under the Prime Minister’s ‘Gati Shakti Master Plan’. This addition has been proposed in the Inter State Transmission system (ISTS) network at 220kV and above voltage level, necessitating large scale investments.
What policies and regulations are in place to support the decarbonisation of the energy sector? Are there specific targets and timelines for achieving net-zero emissions?
The Government of India has announced a systematic long-term and short-term action plan under the Panchamrit action plan, and some of the constituents are reaching a non-fossil fuel energy capacity of 500 GW by 2030; fulfilling at least 50% energy requirements via renewable energy by 2030 among others. There is a need for an integrated and coordinated approach for achieving decarbonisation of the energy sector keeping in view the different primary sources of energy and their consumptions. To begin with, the Government has identified various focus sectors for decarbonisation and Renewable Energy and Energy Storage Systems (ESS) play a key role among all. The Government has taken several policy measures and initiatives for promotion of Green Energy and Storage such as National Green Hydrogen Mission, Production Linked Incentive Scheme, Viability Gap Funding Scheme, etc. SECI is one of the implementing Agencies under Strategic Interventions for Green Hydrogen Transition (SIGHT) programme and a tender has been successfully issued under this programme.
Apart from above, several other measures taken to promote renewable energy and ESS in the country include:
· Permitting FDI up to 100 percent under the automatic route
· Waiver of ISTS charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025
· Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2029-30
· Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers for installation of RE projects at large scale
· Laying of new transmission lines and creating new sub-station capacity under the Green Energy Corridor Scheme for evacuation of renewable power
· Setting up of Project Development Cell for attracting and facilitating investments
· Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators
· Notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022
· Notification of “The Electricity (Late Payment Surcharge and related matters) Rules (LPS rules)
· Launch of Green Term Ahead Market (GTAM) to facilitate sale of Renewable Energy Power through exchanges
· National Green Hydrogen Mission launched with an aim to make India a global hub for production, utilization and export of Green Hydrogen and its derivatives
· Notification of prescribed trajectory for RE power bids to be issued by Renewable Energy Implementation Agencies from FY 2023-24 to FY 2027-28. Under the trajectory, 50 GW/annum of RE bids to be issued.
(The views expressed in interviews are personal, not necessarily of the organisations represented.)
R P Gupta, a retired IAS Officer of 1987 Batch, Gujarat Cadre, is Chairman & Managing Director of the Solar Energy Corporation of India Limited (SECI). Before joining SECI, he worked in the Ministry of Environment, Forest & Climate Change as Secretary, Govt of India.
During his service career, Mr Gupta has worked with NITI Aayog, Ministry of Coal and has experience in corporate management, economics, statistics planning and program implementation. His areas of expertise are energy, environment, climate change, decarbonisation strategies, carbon market & trading, sustainability, resource efficiency and material recycling, forest and wildlife.
Mr Gupta graduated in Aerospace Engineering from IIT, Kanpur. He began his career in Rajkot and subsequently worked in Gandhinagar, Bhavnagar, Dangs, Kutch, Mahesana, and Vadodara.
SECI is a Miniratna CPSU under the aegis of Ministry of New & Renewable Energy (MNRE) and is the only CPSU dedicated to the renewable energy sector. SECI is one of the nodal agencies designated by the Govt of India for implementation of schemes related to RE capacity addition in the country. SECI has an ‘AAA’ rating and has a Category-1 power trading license. SECI is playing a key role in India’s Renewable Energy growth.
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