Strategies for Accelerating Renewable Energy Adoption in India's Electrical Manufacturing Sector

The fluctuating prices of fossil fuels or non-renewable energy resources are unpredictable, depending on geopolitical situations, supply, demand, and more. In this context, using renewable sources of energy can turn out to be beneficial for the electrical manufacturing industry as it can ensure long-term energy security and stability.

December 29, 2023. By News Bureau

Clean energy development has become vital to negate the adverse effects of climate change. 2022 was the fifth warmest year since records have been kept, and it was also the eighth consecutive year in which the global temperature has surged by approximately 1 degree Celsius. As we move forward, energy consumption is also surging globally, and India is not an exception. The power ministry reports that during April–September 2023, electricity usage increased to approximately 847 BU from 786 BU during the same period in the previous fiscal year. The rising demand is the reason for the energy crisis as well as environmental pollution, which also takes a toll on the electrical manufacturing sector.

The situation is likely to get worse if relevant steps are not taken. According to the United Nations, by 2030, there is a need to reduce greenhouse gas emissions by 43 percent in order to prevent their severe effects. Present national plans, however, are insufficient as they anticipate 9 percent growth. Therefore, all nations, including India, have to take prominent steps to address these challenges. One key solution that has been the topic of discussion in the board meetings of industry leaders is transitioning to renewable energy resources. Let us delve into why accelerating renewable energy adoption in India’s manufacturing sector is the need of the hour.

The need for renewables
The adoption of renewable sources of energy such as solar, wind, and more can play a crucial role in reducing the impact of the electrical industry’s activity on nature. It can aid in enabling more efficient raw material processing, building cleaner and more energy-efficient factories, and ensuring long-term energy security.

Long-term energy security
The fluctuating prices of fossil fuels or non-renewable energy resources are unpredictable, depending on geopolitical situations, supply, demand, and more. This makes it daunting for the manufacturing companies that rely on these sole resources for their operations. In this context, using renewable sources of energy can turn out to be beneficial for the electrical manufacturing industry as it can ensure long-term energy security and stability.

Ensuring clean factories
Carbon emissions are the most critical problems the world has been facing, and India is no exception. According to Statista, India's industrial and fossil fuel-related carbon dioxide emissions grew by 6.5 percent in 2022 to a new record high of 2.7 billion metric tonnes (GtCO2). Therefore, in a bid to ensure clean and efficient factories, the adoption of renewable energy sources has become crucial. Furthermore, renewable energy is more cost-effective and less harmful, making it the face of the sustainable electrical manufacturing sector. As per the report by the International Renewable Energy Agency (IRENA), in 2010, solar photovoltaic electricity was generally 710 percent more expensive than the least expensive fossil fuel; however, by 2022, its cost had decreased by 29 percent.

Efficient raw material processing
Cost and energy are the most crucial factors that come into play when turning raw materials into finished goods. It is evident that industrial entities require a vast amount of electricity to operate heavy machinery, run heating and cooling systems, and control the temperatures of their offices. Certain fuel sources, like coal, petrochemicals, natural gas, and fuel oils, serve as feedstock for the production of several products, resulting in the loss of energy and valuable resources. Therefore, renewables can be beneficial for efficient raw material processing, which is energy-intensive.

The advantages of renewable energy adoption are many; however, a fast-tracking energy transition requires collective effort and participation from industry leaders, governments, and individuals. Let us delve into some of the key strategies to accelerate renewable energy adoption in the electrical manufacturing sector.

Key strategies for renewable energy adoption
India’s electrical sector's advancement in renewable energy resources is underscored by several key strategies that can include a strong policy framework, investment and financing, research and development, energy storage solutions, and smart grids.

Strong policy framework: The government has a crucial role to play when it comes to driving the adoption of renewable energy in the electrical industry. With their ambitious and stable policies that support renewable energy deployment, which can include carbon pricing, tax incentives, renewable portfolio standards, and more.

Investment and financing: The industry is in dire need of mobilising private and public investments in renewable energy projects. Financial institutions can also play a vital role by promoting sustainable investments and divesting fossil fuels.

Research and development: The private sector and the government should fund the research and development initiatives while supporting innovation in energy storage, grid integration, and clean energy.

Energy storage solutions: Batteries, thermal storage, and other energy storage technologies are essential for facilitating the integration of renewable energy sources. Energy systems can be made more flexible and reliable by concentrating on developing energy storage technologies.

Smart grids: The industry must also deploy smart grids that will enable efficient management and balancing of energy supply and demand. Moreover, digital technologies can also be implemented while leveraging real-time data to integrate renewable energy into the grid.

All things considered
The Paris Agreement targets will need to be met, according to the International Renewable Energy Agency (IRENA) and the International Energy Agency (IEA), by tripling the percentage of renewable energy in electricity generation by 2022 and increasing it to 90 percent globally by 2030. The Indian economy and development will greatly benefit from this switch to an energy system based on renewable technologies. Further positioned to expedite this shift are strategies like robust policy frameworks, funding and investment, R&D, energy storage systems, and smart grids.

The advantages of having a varied energy portfolio, at the very least, are self-evident. Starting today, manufacturers can and should diversify their bets against growing prices for fossil fuels. The apparent successors of coal, oil, and natural gas must be solar, wind, and hydroelectric power. Even tidal power is gaining traction, if slowly, not to be outdone. In summary, there is every reason for consumers and corporate decision-makers to be enthusiastic about this possible windfall of less expensive and hazardous energy sources in the electrical manufacturing industry.

- Hamza Arsiwala, President, IEEMA
Please share! Email Buffer Digg Facebook Google LinkedIn Pinterest Reddit Twitter
If you want to cooperate with us and would like to reuse some of our content,
please contact:
Next events
Last interviews
Follow us