Published: 21st Dec, 2023
Context
While India has consistently stepped up renewable capacity addition, policymakers have realised that the country simply cannot keep adding more green capacity unless it has viable energy storage options.
About
- The recently concluded 2023 United Nations Climate Change Conference, COP28, witnessed heated debates, with the most contentious issue being the phase-out of fossil fuels.
- The final agreement emphasized a "transition away from fossil fuels," omitting the explicit mention of "phase-out" due to strong opposition, particularly from countries like India, China, and South Africa.
India's Coal Pivot:
- Just days before COP28, India's Union Power Ministry surprised many by announcing plans to increase coal-powered generation capacity. The decision marked a policy reversal, deviating from the earlier emphasis on renewable energy.
- India aims to add at least 80 gigawatts (GW) of coal capacity by 2031-32, indicating a shift in focus towards coal for base load capacity.
- India has significantly increased renewable capacity over the past decade, becoming the world's third-largest producer of renewable energy.
- However, the operational challenges of integrating renewables into the grid, particularly the issue of intermittency, have prompted policymakers to reconsider the rapid expansion of green capacity without viable energy storage options.
Challenges:
- Storage Alternatives: Energy storage is deemed crucial to counter the variability in renewable generation.
- While lithium-ion storage batteries are considered unviable, the government is exploring alternatives such as hydrogen and hybrid generation models blended with off-stream pumped storage. These measures aim to balance the intermittent nature of renewable sources.
- Renewables Cost Challenges: The concept of renewables achieving grid-parity is questioned, with the acknowledgment that the cost of standby thermal power makes renewable power almost twice as expensive on paper.
- The renewables challenge is further compounded by rigid power purchase agreements (PPAs) and the expensive nature of current storage options.
Way Forward:
- India faces a complex energy dilemma, balancing the resurgence of coal for baseload capacity with the challenges posed by the intermittent nature of renewables and the pressing need for effective energy storage solutions.
- The decisions made in the aftermath of COP28 signal a nuanced approach towards achieving a sustainable and reliable energy mix.
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