Solutions to Address Power Sector Concerns

Source: The post solutions to address power sector concerns has been created, based on the article “Powering India’s future” published in “The Hindu” on 6th August 2024

UPSC Syllabus Topic: GS Paper 3-infrastructure-energy

Context: The article discusses India’s clean energy transition, highlighting achievements in electrification and renewable energy growth. It addresses challenges in decarbonizing the power system, rising electricity demand, and climate impacts. It suggests increasing renewable energy targets, improving grid connectivity, and adopting smart metering.

For detailed information on India’s transition from fossil fuels to renewable energy read this article here

What Key Milestones Has India Achieved in the Last Decade?

1. India achieved near-universal electrification through the Saubhagya scheme, with 97% households electrified by 2020.
2. Renewable energy capacity increased five-fold, making India the fourth-largest globally.
3. Power distribution companies’ losses dropped by 40% to 15% in 2022-23.

What Challenges Does India Face in Decarbonizing its Power System?

1. Rising Electricity Demand: Annual demand has been growing by 7-9% since the COVID-19 pandemic.
2. Peak Demand Increase: Peak demand is rising faster than overall demand.
3. Climate Impact: Weather extremes, induced by climate change, exacerbate challenges.
4. Renewable Energy Share: Despite efforts, renewables constitute just 13% of the power generation mix.
5. Coal Dependency: Coal generated 80% of power during non-solar hours in FY24, but 40 GW of coal capacity was often unavailable due to maintenance issues.
6. Power Outages: Unplanned surges and inadequate network capacity cause power outages.

What are the Solutions to Address Power Sector Concerns?

1. Raising Renewable Energy Targets: India should aim for over 500 GW of renewable energy and storage by 2030. Currently, renewables make up just 13% of India’s power generation mix. Increasing renewables and storage can support peak demand and are cost-competitive.
2. Deploying Diverse Clean Energy Resources: As of March, India’s renewable capacity stood at 144 GW, with another 128 GW in the pipeline. Tapping renewable potential in more states and ensuring faster grid connectivity is crucial. Diversifying from solar to other clean technologies helps meet evolving demand.
3. Improving Energy Availability: In FY23, only 6.3% of India’s power was procured through power exchanges. Low liquidity leads to price volatility. Innovations in bid designs and long-term contracts attract renewable energy developers.
4. Maintaining Coal Fleet Effectively: Coal generated 80% of power during non-solar hours in FY24. However, 40 GW of coal capacity was unavailable 60% of the time due to maintenance issues. Revising norms for better maintenance is essential.
5. Fast-Tracking Digitalization: Over 11 million smart meters have been installed, with half in Bihar and Assam. Smart meters help discoms forecast demand, plan networks, and integrate renewables. The target is 250 million smart meters. Ensuring consumer privacy and system security is crucial.

Question for practice:

Discuss the key milestones and challenges India has faced in its clean energy transition over the last decade.