The Challenges of Renewable Energy

Context:

With rising record-breaking heat, shortage of water, and other environmental issues, there is a need to adopt renewable energy as soon as possible by countering the associated challenges.

More on News:  

• India’s astonishing growth in cumulative renewable capacity in the last 8.5 years from 35 GW in 2014 to 174.53 GW today.

• Recently, India called for international cooperation on Carbon Capture, Utilization, and Storage (CCUS) and green hydrogen at 26th World Energy Congress held in Rotterdam, Netherlands.

India’s Position on Renewable Energy:

• According to the Renewables 2022 Global Status Report, India ranks fourth globally in installed renewable energy capacity, fourth in wind power capacity, and fourth in solar power capacity. 
• As of December 2023, Renewable energy sources, including large hydropower, have a combined installed capacity of 180.79 GW. 
  • Wind Power: 44.73 GW, 
  • Solar Power: 73.31 GW, 
  • Biomass/Cogeneration: 10.2 GW, 
  • Small Hydro Power: 4.98 GW, 
  • Waste To Energy: 0.58 GW and 
  • Large Hydro: 46.88 GW 
• India is the world’s third-largest consumer of energy. 
• India is the world’s third-largest emitter of greenhouse gases, and is making significant steps in its transition to renewable energy.
• Targets: India has set a target of 500 GW of non-fossil fuel-based energy by 2030, which is the largest expansion plan for renewable energy in the world. 
  • The plan involves an investment of at least ₹2.44 lakh crore or ₹2.44 trillion.
  • Additionally, India has committed to achieving net-zero emissions by 2070. 
• India’s Renewable Energy Target Under Nationally Determined Contribution or NDC:
• • Reduce the Carbon Intensity of the nation’s economy: To less than 45% by the end of the decade. 
  • Electric Power: Achieve 50% cumulative electric power installed by 2030 from renewables, and 
  • Net zero Carbon Emission: Achieve net-zero carbon emissions by 2070. 
  • Total Capacity: India aims for 500 GW of renewable energy installed capacity by 2030. 
  • Green Hydrogen: India aims to produce five million tonnes of green hydrogen by 2030.
    • NDC is a climate action plan to cut emissions and adapt to climate impacts.

India has Taken Several Steps to Promote Renewable Energy:

• Budgetary Provisions: India is exploring innovative solutions to these challenges. In the Union Budget 2024-25, India has allocated Rs 10,000 crore for a grid-based solar power scheme.
  • It includes provisions for viability gap funding for offshore wind energy for an initial capacity of 1 GW.
• Pradhan Mantri Suryodaya Yojana: It aims at installing rooftop solar power systems in one crore households across the nation.
• Production Linked Incentive (PLI) Scheme: It aims to enhance India’s manufacturing and exports in the solar sector. It has proved to be a watershed event in India’s Renewable landscape resulting in around 48 GW domestic module manufacturing capacity within the next 3 years.
  • The PLI Scheme was approved in April, 2021.
• National Green Hydrogen Mission: It focuses on employment, import substitution, and Research and Development in renewable energy.
• PM KUSUM Scheme: It ensures energy security for farmers and increases non-fossil fuel power capacity to 40% by 2030.
  • India allows up to 100% Foreign Direct Investment in renewable energy projects.
• Green Energy Corridors: These establish transmission systems for renewable energy projects.
• India’s Support to Electric Vehicles: India supports the global EV30@30 campaign, which aims for at least 30% new vehicle sales to be electric by 2030.
• The International Solar Alliance: It aims to deploy solar energy solutions globally.
  • Bioenergy: Initiative was undertaken for spreading the message of not burning biomass and using it for Bioenergy conversion, in 20 districts of Punjab, Haryana and Uttar Pradesh through BioCNG driven Vans.
  • Green Carbon Credits: These are proposed to create carbon sinks through public participation.

Need for Renewable Energy:

• Sustainable: Energy generated from renewable sources will be cleaner and greener and more sustainable.
• Employment Opportunities: Inclusion of a newer technology leads to more employment opportunities.
• Consistent Power Supply: Providing 24*7 power supply to 100% of the households, sustainable form of transports can be achieved through these renewable energies.
• Tackle Climate Issues: Renewable energy has undertaken a global adoption as a means to alleviate climate change. It is free of direct pollution and carbon emissions.

Challenges of Renewable Energy: High Initial Cost of Installation: There are high initial costs for the installation of renewable energy technologies, which makes investors and lenders think of renewables as high risk whereas they find fossil fuel plants more acceptable due to their low installation costs.

• • Of all the energy sources, solar as well as wind are the cheapest ones.  However, there is a huge difference in the upfront installation cost of a solar power system and a gas-fired plant. 
    • The installation cost of large-scale solar power systems is around $2,000 per kilowatt and for a new gas-fire plant, it is $1,000 per kW only. 
• Lack of Infrastructure: Wind and solar energy can be better investments when lifespan costs are considered, but lack of infrastructure is a barrier to renewable energy development. 
  • The present infrastructure is mainly built for fossil fuel plants and nuclear plants.

• • Inadequate Power Storage: The lack of power storage at an affordable cost is another drawback. Renewable energy sources generate most of their energy at certain times of the day. Its electricity generation does not match with the peak demand hours. 
    • There is volatility in generation and volatility in storage. 
• Technical Challenges: Renewable energy technologies require specific technical expertise.
  • Solar and wind energy systems require regular maintenance and skilled technicians for installation and repair.
• Non-Renewable Energy Monopoly: Fossil fuels have been part of human life for a long time. Subsequently, It has its roots deep in the economy of the country.
  • Solar, wind, and other renewable sources of energy have to rival the well-established fossil fuel industry. Even though the government is providing rebates and other support for solar energy, the fossil fuel industry has massive support from the government.
• Geographical Inequalities: While investment in renewables has seen a notable rise, it is notably imbalanced due to geographic disparities. Developed countries and China account for more than 80% of the total investment in renewables.
  • However, large parts of the world, especially the emerging and less developed economies, are lagging behind.
    • Example: In Southeast Asia, green investments in the region dipped 7% in 2022 compared to 2021. 
• Disruptive Events: As observed in the last few years, no area of the world is safe from the chaos caused by both natural events and human behaviour. It led to massive impacts on supply, demand, and pricing of associated materials and renewable energy technologies. 
• Operational Challenges: Dust is a problem, especially in Rajasthan, which requires frequent cleaning and increases the operational costs. 
  • Hard water is not suitable for cleaning, and companies have to invest in reverse osmosis (RO) and other technology to make it suitable.
  • Skilled workforce is not available in cleaning and maintenance areas.
  • Furthermore, bureaucratic red tape and complex permitting procedures can delay project implementation.
• Dependency for Raw Materials: Access to raw materials and rare earth metals is one of the major challenges that are faced by the renewable energy sector. There is low manufacturing of Silicon panels in India and is heavily relied on importing solar cells and modules, mainly from China and Vietnam, to meet its solar energy requirements.
  • These materials are essential for the manufacture of renewable energy technologies, and a projected shortage could impact the sector’s growth. 
• Lack of Knowledge & Awareness: People are reluctant to use renewable energy technology due to lack of knowledge and awareness.
• Environmental Impacts: Impacts on biodiversity loss with the construction of large-scale solar parks are also location-specific, and under-researched. 
  • Example: Open natural systems such as deserts provide essential ecosystem services that, if disturbed, would cause ecological damage and even contribute to climate change. 
• Feasibility & Viability: All of the resource requirements and impacts on livelihoods and biodiversity are subject to uncertainty regarding feasibility and economic viability of other emerging low carbon technologies and the changing climate itself.
• Competing with Other Resources: At a more regional or national scale, solar parks may compete for essential natural resources. Solar panels require large amounts of water for their regular cleaning. 
  • Similarly, the land needed for solar parks may compete with other productive activities — agriculture and related livelihoods, with the potential for impacts on food security. 
• Land Use Challenge: Large-scale renewable energy projects, particularly solar parks, require extensive land use.
  • Some studies estimate that India may need 50,000-75,000 sq. km of land, about half the size of Tamil Nadu, to achieve its Net Zero targets.
• Impact on Food Security: The conversion of agricultural land for renewable energy projects could potentially impact food security.
  • As per experts, the push for renewable energy may lead to food insecurity in the future as India would need at least 400,000 hectares of land by 2030 to achieve its renewable targets.

Way Forward:

• Experimentation with Ownership Models: The renewable energy parks need not necessarily be owned by the state or private companies. Community initiatives could help generate revenues for the communities, further promoting small businesses and upskilling, improving incomes, stimulating local economies, and improving energy access.
• Overhaul the Wasteland Classification: Similar to Pavagada, if wasteland is to be leased or acquired for solar parks, solar park development corporations will have to engage with local governance units such as the Gram Sabha to initiate the project.
• Exhaustive Legal Regulations: Solar and wind park development is exempted from Environmental and Social Impact Assessment, which must be revised and strengthened to limit adverse social and environmental consequences. 
• Monitoring Mechanisms: It is required for establishment of land record, its accountability and transparency.
  • In terms of impacts on small and medium landowners where private land is being used, there is no mechanism to monitor if a fair price is paid to those leasing their land. 
• Focus on Innovation: Need to encourage research and experimentation with ‘agrivoltaics’ for sustainably developing renewable energy. 
  • Agrivoltaics pair solar with agriculture, creating energy and providing space for crops, grazing, and native habitats under and between panels. Thus, farmers can grow crops while also being ‘prosumers’ (producers and consumers) of energy. 
• Infrastructure Enhancement: The existing energy infrastructure needs urgent reform as it is not capable of handling large amounts of renewable energy.
  • A battery storage system helps to store the surplus energy for later use. It can help with grid instability, thereby preventing blackouts. 
    • Technological advancement has improved the longevity and battery capacity of the storage system. 
    • Battery prices have to come down to make storing of solar energy more cost-effective.
• Adequate Skilling & Training Programmes: Large-scale renewable energy projects could have positive employment outcomes at the district level, but they lead to massive employment shifts between sectors at the national level. Adequate skilling and training programmes targeting the unskilled and poorer populations are essential.
• Balancing Approach: Balancing the need for renewable energy with the need to ensure food security requires careful planning and policy-making. 
  • Policymakers need to consider the potential impacts of renewable energy projects on agricultural practices and food security and then take actions accordingly. 
• Support by Government & Organizations: More innovative use by multilateral development banks of their balance sheets may include providing risk-taking guarantees and catalyzing more private finance for renewable projects.
  • Investors, financiers, and developers need to respond with faster and better funded renewables development, that holds the potential to accelerate renewable growth globally.
  • Governments need to address physical, administrative, and procedural hurdles that will help to reduce risk and cost.
  • There is a need for incentives and regulatory apparatus to both bring new technologies into the market affordably and encourage their deployment. 
  • The Government should emphasize R&D to accelerate adoption of renewable energy technologies alongside introducing new commercial frameworks including bids for Pumped Hydro, Battery and other forms of Energy-Storage Systems. 
  • Further impetus can come from implementing the envisioned domestic carbon market, and the Electricity Amendment Bill to introduce critical reforms.

Conclusion:

India is at the verge of a second green revolution (involving energy) that provides an opportunity to align with technological, economic, and institutional structures to maximise synergies between sustainability, climate change mitigation, and development related outcomes.

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