Challenges and advances in India’s renewable energy sector
India has progressed from using coal and oil to adopting renewable energy (RE) over the past 25 years. This shift is part of the country’s broader socio-economic growth, influenced by evolving public sector undertakings, energy access schemes, and regulatory frameworks.
India’s Oil Industry Evolved
- Early Beginnings: Oil was first discovered in Digboi, Assam, in the late 19th century by an English engineer.
- Mid-20th Century: The government established ONGC for exploration and IOCL, BPCL, and HPCL for marketing.
- Major Discoveries: In 1974, ONGC discovered Bombay High, which now accounts for 70% of India’s domestic oil production.
- Private Sector Entry: The 1999 New Exploration Licensing Policy (NELP) allowed private companies to explore oil and gas. Reliance Industries discovered gas in KG-D6 in 2002, while Cairn Energy found the Mangala oil field in 2004.
- Challenges: Domestic crude production has stagnated at 30-35 million tonnes annually since 2011. In 2023-24, production fell to 29.4 million tonnes.
- Future Goals: India is promoting green fuels to reduce reliance on oil imports.
Challenges and Advances are Present in Renewable Energy
Challenges in Renewable Energy
- Seasonal and Unreliable Supply: Renewable energy (RE), like solar and wind, depends on weather, making it less reliable.
- High Storage Costs: Expensive storage technology limits the integration of RE into the grid.
- Discom Financial Strain: Power distribution companies prefer cheaper thermal power despite falling RE costs.
- Slow Grid Absorption: RE capacity grew to 136 GW by 2024, but it contributes only 12% to India’s energy mix.
- Slow Adoption of Next-Generation Fuels: Technologies like biodiesel and green hydrogen have not scaled effectively.
Advances in Renewable Energy
- Significant Capacity Growth: India targets 500 GW of non-fossil fuel capacity by 2030.
- Policy Support: The National Biofuel Policy of 2018 and the ethanol blending program aim for 20% ethanol in petrol by 2025-26.
- Green Hydrogen Mission: This initiative focuses on green energy exports and energy independence by 2047.
- Government Initiatives: Policies supporting decentralized solar and transmission infrastructure boost RE growth.
Coal Play in India’s Energy Strategy
- Coal remains central to India’s energy strategy despite global pressure to reduce reliance on fossil fuels.
- Coal India Ltd (CIL) has seen growth and private participation, leading to increased coal production.
- The government plans to phase out coal slowly, with a target of a more significant reduction by 2047.
Energy Access Improved in India
- Universal Electrification: Programs like Saubhagya connected all households to the national grid.
- Electricity Supply: Rural areas get 18-20 hours, and urban areas 22 hours daily.
- LPG Access: The Pradhan Mantri Ujjwala Yojana (PMUY) provided clean cooking fuel to 103.3 million households.
- Targeted Subsidy: PMUY now offers Rs 300 per cylinder for up to 12 refills annually.
- Impact: 20.3 million PMUY families used more than six refills in 2023-24.
India aims for energy independence by 2047 with a shift towards non-fossil fuel sources, aiming for 500 GW of capacity by 2030. The National Green Hydrogen Mission is part of this strategy, intending to make India an energy exporter and reduce fossil fuel reliance significantly.
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