Decarbonising India’s power sector

As the world’s third-largest electricity producer with the third-largest installed power capacity, India stands at a critical crossroad in its power decarbonisation narrative. On the one hand, the country must meet the growing demand for electricity, increasing at an annual rate of 5 per cent, which will nearly triple the power demand by 2040.

On the other hand, the prime minister has made firm commitments by announcing the panchamrit approach – to be ‘net zero’ by 2070, in addition to meeting half of the country’s power sector needs from renewable energy sources and reducing total projected carbon emissions by 1 billion tonnes by the turn of this decade – at UNFCCC’s 26th Conference of the Parties (COP26) in Glasgow last year. 

Recently, the cabinet has also approved India’s updated Nationally Determined Contributions (NDC), which reflects the spirit and essence of the panchamrit approach, as we prepare for COP27 to be held in Sharm El-Sheikh in Egypt in November 2022. Clearly, this is a long road to traverse, which calls for collaboration to set clear pathways for energy transition.

The country has taken bold and diverse steps with a range of actions in encouraging renewables, focussing on round-the-clock hybrids, recognising gas as an appropriate bridge for transition, enhancing policy support for green hydrogen, necessitating emission-control technology for coal-fired plants that will not disappear overnight, and more. 

The roadmap to decarbonising the power sector, without disrupting the need for reliable, safe and uninterrupted power supply must prioritise robust pathways that are actionable, tangible and aligned with the government’s ‘net zero’ vision. While first in these priorities will be to improve renewable capacity, there is still a long way to go in ensuring that there is sufficient accessible and reliable round-the-clock power for all. 

Specific solutions for diverse conditions: To accelerate clean energy transition, it is imperative to explore the paced and strategic deployment of renewables and gas power as a near-term strategy. This can help make substantive reductions in emissions quickly, while continuing to advance near-zero-carbon power generation and shifting to electrify and decarbonise other sectors such as transportation, also a key contribution to greenhouse gas emissions.

With a current installed gas-based capacity of 25 GW, which is about 6 per cent of the total, there is a strong opportunity to revive stranded gas assets that stand at 57 per cent. Reviving these assets can play a seminal role in unlocking the power of gas. Developing the natural gas pipeline infrastructure must also be fast-tracked in addition to encouraging capex investments for retrofitting combined cycle plants. 

Several Indian states have taken the lead in wind and solar installations. However, the sun doesn’t always shine and the wind doesn’t always blow and, here, embracing hybrid power can make a monumental difference – especially in delivering clean power.

Hybrid, which is the next frontier of renewables, combines renewable sources, efficiency energy storage and software applications to generate round-the-clock reliable renewable power. Pumped hydro storage systems offer an attractive storage solution to our nation at much lower levelised costs of electricity.

Upgrading the transmission grid to manage the vagaries of intermittent generation in wind and solar power is critical in accommodating the new generation of renewable power and managing it without disruptions. Digital technologies and data analytics will play a big role in that. Exploring wind-plus-solar or thermal-plus-solar hybrid solutions that are customized, based on terrain and budgets and the use of digital twins – real-time algorithms of power plants – can also help bring down the levelized cost of electricity.

Hydrogen is another game changer that is making rapid inroads into India. With its goal to be one of the world’s largest green hydrogen producers and a global hub, India has distinctive advantages – such as access to low-cost renewable electricity and rapidly falling electrolyser prices – which to tap green hydrogen as an effective pathway to decarbonise the power sector. Hydrogen can also be used to power gas turbines, which are by nature fuel-flexible and can be configured to operate on green hydrogen. 

Coal will still remain relevant and, here, developing appropriate emissions control technologies to significantly contain SOx and NOx emissions will be critical. Thus, as is evident, there is no one-size-fits-all formula in decarbonising India’s power sector. We need tailor-made solutions that can address disparate power policies, infrastructure and varied local conditions.

Moving forward, as COP27 is likely to witness, we need unanimity in exhibiting a firm mindset focussed on enhancing operational efficiency and embracing new fuel sources. We can then achieve tangible and visible gains in meeting our near-term and, eventually, ‘net zero’ 2070 goals.