Interview: Anvesha Thakker

Partner, Business Consulting & National Industry Lead – Clean Energy at KPMG in India

Heat Pumps and Thermal Batteries: Game-Changing Technologies for Industrial Decarbonisation

January 09, 2025. By Abha Rustagi

The renewable energy sector has undergone a dramatic transformation over the past decade. Once dominated by large-scale solar or wind projects with long-term government PPAs, it has now evolved into a dynamic, multifaceted industry creating opportunities for a more inclusive workforce, said Anvesha Thakker, Partner, Business Consulting & National Industry Lead – Clean Energy, KPMG in India, in an interview with Energetica India.

Que: What are the key challenges Indian industries face in transitioning from fossil fuels to clean energy and how do you see the role of technologies like heat pumps and thermal batteries in supporting this transition?

Ans: Over 80 percent of industrial energy is derived from fossil fuels, primarily for electricity, heating, cooling, and various industrial processes. While solar and wind technologies are increasingly being deployed as substitutes for fossil fuel-generated electricity, transitioning to clean alternatives for other applications remains complex. Unique process needs, such as high-temperature heat, the maturity of alternative technologies, and high costs associated with low-carbon solutions, complicate the reduction of fossil fuel use.

Heat pumps which can be powered by renewables and thermal batteries offer promising solutions for energy-intensive industries to decarbonise their heating and cooling systems. However, widespread adoption depends on feasibility and cost-effectiveness. District cooling and district heating are prime examples where scaling these technologies can enhance economic viability and efficiency. By integrating heat pumps and thermal batteries into large-scale applications, deployment costs can be reduced, and overall energy efficiency improved. Embracing these technologies can significantly contribute to our decarbonisation goals, ensuring sustainable and efficient energy use in industrial applications.


Que: What is the potential of industrial parks and smart cities in facilitating the adoption of clean energy technologies through economies of scale?

Ans: Establishing industrial smart parks and smart cities with integrated clean energy infrastructure from the outset could be a game changer. By incorporating shared resources for cooling and heating services, or centralised production, storage, and distribution of clean energy solutions like hydrogen, we can achieve significant economies of scale and ease deployment challenges. This approach can also enable energy transition for smaller players such as MSMEs which may not themselves have the necessary scale or resources to achieve this independently.

Another interesting model here could be implementing common carbon transportation and storage solutions which can greatly enhance the ease of carbon management and monetisation. A centralised CO2 hub can serve nearby industries that convert captured CO2 into valuable products such as chemicals, building materials, or even green urea and green methanol.

Such transformative approaches not only optimise resource use and reduce costs but also create a more sustainable industrial ecosystem. It is absolutely critical to make this central to policymaking and incorporate it into industrial planning.


Que: What role do you see for carbon credits in offsetting the initial costs of adopting clean energy solutions?

Ans: Clean energy solutions like solar and wind are among the most competitive energy sources today. Besides the climate benefits, economic factors are driving governments and corporates to adopt these technologies. However, carbon credits play a crucial role in supporting the adoption of technologies that are not yet cost-competitive, such as green hydrogen and carbon capture.

In such cases, carbon credits can help users bridge the cost gap of adopting these technologies, especially if they are not planning to leverage the green benefits associated with them. More acceptance of these technologies can drive momentum, encouraging economies of scale and reducing costs over time. This fosters broader market adoption and facilitates the transition to a low-carbon economy.


Que: How critical is the role of AI, machine learning, and other digital technologies in optimising renewable energy assets?

Ans: Today, one of the most critical areas for driving non-linear change in accelerating energy transition is the integration of AI. Recognising this, the theme for KPMG in India’s annual energy conference, ENRich, was ‘AI for Energy’ this year. We explored how AI can accelerate transformation and deliver practical solutions for achieving our energy transition goals.

The clean energy industry in India has experienced rapid growth. However, companies are now placing a strong focus on performance, especially as they explore value unlocking events. Improving performance metrics, such as enhancing revenue or EBITDA and increasing efficiency, is crucial as portfolios expand. Digital technologies like AI, ML, and Gen AI are pivotal across the value chain.

From preconstruction activities such as bidding support and optimisation to construction management and logistics, and operations like improved scheduling, forecasting, and maintenance – digital technologies have a significant impact. These advancements attract CXOs aiming to maximise asset and business performance.

However, any such measures must align with societal values such as trust, security, safety, and accountability. These principles were prominently discussed with industry leaders during ENRich.


Que: How is the increasing inclusion of women in the renewable energy sector, particularly through the diversification of job roles, contributing to a more inclusive environment?

Ans: The renewable energy sector has undergone a dramatic transformation over the past decade. Once dominated by large-scale solar or wind projects with long-term government Power Purchase Agreements (PPAs), it has now evolved into a dynamic, multifaceted industry. Today, the sector encompasses a diverse array of technologies and solutions, including energy storage, electric vehicles (EVs), green hydrogen, hybrid renewable energy systems, etc. It also caters to a variety of customers and markets, such as commercial and industrial (C&I) sectors, utilities, and energy exchanges.

This evolution has introduced diverse job roles such as R&D, innovation, business development, customer service, technology/analytics, and sustainability. The sector's growth and diversification are creating opportunities for a more inclusive workforce, attracting diverse skills and perspectives.

The sector now values diverse perspectives and skills beyond traditional roles, driving innovation and growth. Increased opportunities for women will greatly enhance representation and accelerate progress toward a sustainable and inclusive future.


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