The Power Ministry Report Card For 2022- Renewables Push, Reforms Lead Agenda

When it comes to energy and its countrywide distribution, the Power ministry is the responsible limb of the government. We look at the growth of clean energy and its distribution in India, while also assessing the various measures taken to promote clean energy in the seventh-largest country in the world.

India is the world’s third largest producer of renewable energy, and over 40 per cent of its installed electricity capacity comes from non-fossil fuel sources. Various crucial developments have taken place as well as milestones achieved in the realm of clean power distribution in the last year.

UJALA & SLNP

Energy efficiency delivers several environmental benefits. As per IEA, an increase in energy efficiency reduces GHG emissions, both direct emissions from fossil fuel combustion or consumption and indirect emissions reductions from electricity generation.

The initiatives of Energy Efficiency Services Limited (EESL), the organisation under the Power Ministry responsible for the implementation of the Domestic Efficient Lighting Programme (DELP), or the Unnat Jyoti by Affordable LEDs for All (UJALA) scheme, has so far saved over 48.39 billion kWh of energy per year, a GHG emission reduction of 39.30 MT CO2 per year.

Under the UJALA scheme, it has distributed over 36.86 crore LED bulbs, 72.18 lakh LED Tube lights and 23.59 lakh Energy efficient fans (including over 55,000 BLDC fans) across India.

Furthermore, under Street Lighting National Programme (SLNP), EESL has installed over 1.26 crore LED Street Lights in ULBs and Gram Panchayats across India. This has resulted in estimated energy savings of 8.50 billion kWh per year, reducing 5.85 million t CO2 per year.

Promoting “Renewable” Electricity

India aims to meet 50 per cent of its energy requirements from renewables and reduce cumulative emissions by one billion tonnes by 2030. To accelerate the ambitious renewable energy programmes in India and to ensure affordable, reliable, sustainable, and green energy for all, Power Ministry passed Electricity (Promoting Renewable Energy through Green Energy open Access) Rules, aka Green Open Access Rules, 2022.

As per the rules, any consumer with a connected load of 100 kW or above can get Renewable Energy through open access from any Renewable Energy generating plant set up by himself; or by any developer. The open access has to be granted within 15 days. The special provisions for cross-subsidy surcharge, additional surcharge, standby charge, and banking will incentivise the consumers to get Green Power at reasonable rates. A dedicated portal has been assigned for smooth functioning. Special concessions are also given in the rules for promoting Green Hydrogen/Green Ammonia and Waste to Energy Plants.

Similarly, the Ministry promulgated the Electricity (Right of Consumers) Rules 2020 realising the right of consumers to get reliable services and quality electricity. As per the rules, the consumers, who are using the diesel generator sets as essential backup power, shall endeavour to shift to cleaner technology (such as renewable energy) with battery storage within five years from the date of commencement of these rules or as per the timelines given by the State Commission.

Preparing for RE Expansion

The Ministry of Power notified Bidding Guidelines for Procurement and Utilization of Battery Energy Storage Systems earlier this year, in a bid to support renewable energy expansion. Along similar lines, a pilot project on a 1000MWh Battery Energy Storage System (BESS) was also planned.

Furthermore, a high-level committee had been constituted to plan the required transmission system for 500 GW of non-fossil fuel-based installed capacity by 2030. The committee came out with a detailed plan titled “Transmission System for Integration of over 500 GW RE Capacity by 2030“. The ₹2.44 lakh crore transmission plan identified upcoming non-fossil-based generation centres in the country. The plan entails 50,890 circuit km transmission lines and 4,33,575 MVA substation capacity. For the storage of RE, the plan also envisages the installation of 51.5 GW battery storage by 2030 to provide round-the-clock power to end-consumers.

Other Reforms

Other reforms by the Power Ministry include a revised scheme for flexibility in the generation and scheduling of Thermal/Hydropower stations through bundling with Renewable Energy and storage power. On its way to achieving 500GW of non-fossil fuel-based energy by 2030, India plans to replace about 58,000 million units (MU) of power produced from 30,000 megawatts (MW) capacity in central, state and private thermal power stations, with renewable energy by 2025-26.

The ministry also released the Renewable Purchase Obligation (RPO) and Energy Storage Obligation Trajectory till 2029-30. Accordingly, the total RPO will progressively increase from 24.61 per cent in 2022-23 to 43.33 per cent by 2029-30. This includes wind RPO, hydropower purchase obligations (HPO), and other RPO.

Interconnection of Regional Grids – OSOWOG

A task force was constituted on OSOWOG (One Sun, One World, One Grid) to study the techno-economic feasibility of the interconnection of regional grids viz. South East Asia, South Asia, the Middle East (Gulf Cooperation Council), Africa & Europe for the exchange of renewable power. In the first-of-its-kind assessment, interconnection with Sri Lanka, Myanmar and Maldives is considered for further exploration. The Charter for OSOWOG has been finalized, and a Steering Committee for OSOWOG is being set up.

An Indian technical team visited Maldives for studying the technical specifications of interconnection between India and Maldives through Lakshadweep.

Other moves to improve Biomass usage in thermal power stations and commissioning of some key large Hydro projects were also highlights of 2022.

All of this came in a what promises to be a record year for renewable capacity addition, with 15 GW for the FY 23 looking very achievable. However, it is carrying forward the momentum to 2023 that will be crucial, as much remains to be done to convert much of the intent into results on the ground. Already, rising interest rates and supply side issues on the ground due to the duties in Chinese imports has started to strain the ROI’s of many developers. It remains to be seen if the budget this year will offer a way out, especially for older projects that are still breaking ground, or yet to commence development.