Energetica India Magazine May-June 2021

RENEWABLE ENERGY Outlook for India’s Power and Renewable Energy Sector in 2021 In India, increasing investments in the industrial sector driven by the ‘Make in India’ initiatives, the rising input costs (energy) and electricity prices, coupled with stringent government regulations, are expected to drive investment in the establishment of captive power plants for continued uninterrupted power supply leading to sustainable in- dustrial operations. 52 energetica INDIA- May-June_2021 The power generation industry has been witnessing a major transformation globally in the last few years this will be expect- ed to continue in the coming years as well. This resulted in changing energy generation mix and shift from conventional sources to renewable sources. The industry has observed some key trends like Sustainable power development; focus towards the various concerns related to climate change came along with eco-friendly policies. It is largely expected that the industry may witness greater acceleration towards eco-friendly “Green Power” solutions going forward. India’s need for energy is increasing rapidly, owing to econom- ic growth and overall industrialization and urbanization over the past few years and according to the latest Government statistics, in FY20, the gross electricity consumption has gone up to 1,208 kWh per capita and the peak electricity demand to 183 GW. As of March 2021, India’s total installed power generation ca- pacity is 379 GW. This includes 91 GW of capacity from Re- newable Energy Sources. Of this, 10 GW capacity is from Bio- mass power (Bagasse and Non-Bagasse), followed by 147.6 MW from Waste to Energy, according to the Ministry of New and Renewable Energy (MNRE)*. According to the 19th Electric Power Survey conducted by the CEA, the all-India installed power generation capacity is pro- jected to grow to 619 GW by the end of FY27. The peak elec- tricity demand has been estimated as 226 GW during FY22 and 299 GW during the year FY27. The International Energy Agency (IEA) estimates indicate that India will add between 600 GW to 1,200 GW of additional new power generation capacity before 2050. Captive Power Generation Scenario Globally, captive power generation is the key growth enabler for many manufacturing industries, where grid disturbances in the supply of power can affect their operations. Owing to the increasing demand for power from emerging industrialized economies such as China, India, Africa and the Middle East, the investment in captive power plants is expected to remain strong. In India, increasing investments in the industrial sector driven by the ‘Make in India’ initiatives, the rising input costs (energy) and electricity prices, coupled with stringent government reg- ulations, are expected to drive investment in the establishment of captive power plants for continued uninterrupted power supply leading to sustainable industrial operations. Captive power generation units can be fired by using both fos - sil fuel and renewables. The largest market for captive power generation in the country is the Industrial sector, mainly on ac- count of the increasing demand for electricity from energy-in- tensive industries such as Cement, Iron & Steel, Petroleum Re- fineries and Chemicals etc. Improvement in coal supply, increasing awareness of renew- able energy, eco-friendly power generation policies will en- hance the captive power additions in the country. According to the Ministry of Power, the installed captive power genera- tion capacity (above 1 MW capacity) associated with indus- try-owned plants is 78,000 MW or 78 GW as of 31 March 2020. Arun Mote Executive Director & CEO, Triveni Turbines