Interview: Udit Garg

Director & CEO at Kundan Green Energy

India's Energy Security: A Multi-Faceted Challenge and Opportunity

November 26, 2024. By News Bureau

India must immediately accelerate growth in electric power generation to address its development and poverty-alleviation goals, said Udit Garg, Director & CEO, Kundan Green Energy, in an interview with Energetica India.

Que: How can India achieve greater energy security while balancing its reliance on coal with renewable energy sources?

Ans: Our long-term goal is, naturally, a sustainable energy economy based on carbon-neutral systems. In my view we have to consider energy security, development, and a reduction in emissions of pollutants and green-house gasses. We have to progressively reduce carbon intensity, reduce the peak of carbon dioxide emissions and reach the transition point to clean energy as early as possible. We will, however, have to continue with a mix of coal and other fossil fuels alongside renewable/green energy ---- the equation, incrementally, will have to move towards green energy each year at a designated pace. There is no short-cut to this.

India must immediately accelerate growth in electric power generation to address its development and poverty-alleviation goals. In an optimistic scenario, electric energy generation will increase from the current 800 TW hours to over 3250 TW hours, per year, by 2032. This capacity will correspond to 0.25 kW per person and will achieve what we designate as a poverty elimination goal. We must also accomplish the near-term growth in electric power in ways that simultaneously create a robust framework for rapid transition to a carbon-neutral economy post 2032 and commit to cap CO2 emissions at a maximum of five gigatonnes per year. Here’s how I see the most significant aspects for this growth and transition:

i) The most cost-effective option (assuming no tax on CO2 emissions) that can lead to significant new capacity in the near term, is coal-fired generation. In the most likely growth scenario coal, natural gas, hydro-electric and nuclear will have roughly 70%, 22%, 9% and 9% share respectively of the energy generated by our target year 2032.

ii) Even though the share of nuclear at 40 GW will still be small, the good news is that by 2032 India will have matured four nuclear technologies – pressurized heavy water reactors, light water reactors, uranium/plutonium based fast breeder reactors and thorium based reactors. Large-scale deployment of these nuclear technologies will serve in part, as an insurance policy that could support post 2032 growth even if anticipated reductions in cost of wind, solar PV panels and other renewable generation, and emergence of new carbon-neutral technologies do not occur in time.

iii) Our ability to sustain our industrial complex, let alone expand it, using fossil fuels will be subject to world markets, international treaties, and geopolitics and not merely driven by our need. For this reason I believe that development, energy security and climate change mitigation are one and the same goal. The window of opportunity for the Indian economy to grow using fossil fuels while simultaneously developing long-term carbon neutral options is about 25 years.

iv) Growth in the energy sector requires very significant investment and is, therefore, predicated on India maintaining a GDP annual growth rate of 7% or higher. To guarantee success, the state and the central governments must work together to plan and execute, improve efficiency, reduce waste, streamline bureaucracy, reward merit and incentivize good corporate behaviour. Timely implementation must follow holistic planning.

v) Additional unconventional options should be pursued vigorously. India must re-double efforts to stabilize its population. We can also contribute to climate change mitigation by eliminating emissions of black carbon by aggressively providing modern substitutes for traditional biomass as cooking fuel.

The challenges are daunting. Nevertheless, the recipe for success is clear: A national will to recognize the many simultaneous challenges, creating sound long-term policy and demonstrating timely and efficient execution.


Que: How are advancements in grid management and storage technologies addressing intermittent solar and wind power contributing to the energy security of India?

Ans: Over the last decade, India’s energy sector has undergone a massive transformation, in terms of energy access, delivery, infrastructure enhancement, and, more importantly, a huge increase in the use of cleaner fuels. But several challenges remain and will need to be addressed before India can be deemed an energy secure country that can ensure access to clean and sustainable energy to all its citizens, as well as being a responsible member of the global energy community. Hybrid energy systems (HESs) consisting of both conventional and renewable energy sources can help to drastically reduce fossil fuel utilization and greenhouse gas emissions. The optimal design of HESs requires a suitable control strategy to realize the design, technical, economic, and environmental objectives.

From a hydropower perspective, the technology has made considerable progress toward sustainability. For example, fish-friendly turbines, now in operation, and the increasingly common inclusion of fish ladders in dams to prevent the fragmentation of migration routes. I believe the planning of hydropower projects should not be done exclusively at the plant scale. Instead, new projects need to be planned at a system scale that can potentially include other interconnected assets, an entire river basin or even a region. Hydropower assets can greatly benefit from improvements aimed at increasing their own flexibility, and consequently, the overall system flexibility. To illustrate this consider the following:

• Plant redesign: Addition of storage facilities by installing pumps, reversible pump turbines or batteries. This option requires civil works, new equipment and, in some cases, a reinforced grid connection.

• Equipment upgrades: Older facilities can benefit from modern equipment which can increase their efficiency, capacity and operating range. Modernising equipment, plants can achieve a 1-3% increase in efficiency. This option requires civil works, new equipment and/or, in some cases, a reinforced grid connection.

• “Smarter” plants: Technology has advanced considerably in the last decade, and new sensory and testing capabilities from turbine manufacturers have resulted in software that can make operations more efficient and controllable and expand the operating range of hydropower plants. This option does not require civil works or major equipment changes.

Governments can be instrumental in guaranteeing the continued deployment of hydropower and, in that way, pave the way for the decarbonisation of the power sector. They can help attract the necessary investment in hydropower by providing incentives and creating a suitable business environment. Some of these incentives can be: relief from taxes and duties, concessional grants or loans, accelerated asset depreciation. Besides this, subsidies based on environmental performance and subsidies for services provided beyond power generation (e.g. water management). Also the capital cost contributions (e.g. when a project offers benefits that are hard to monetise, such as flood control).

Government can also facilitate the further deployment of hydropower by streamlining concession and licensing processes which would reduce some of the regulatory uncertainty surrounding hydropower projects and make them more attractive investments. That said, neither incentives nor regulatory streamlining alone might be enough to develop the necessary hydropower capacity. A combination of closely co-ordinated incentives and regulatory streamlining could accelerate the deployment of hydropower.

Sustainable hydropower could also benefit from being included in green bond taxonomies to funnel increased levels of investments, which is not always the case, depending on market perceptions and risk-averse behaviour from bond issuers. Electricity markets will also have to change to adequately remunerate the large suite of services provided by hydropower beyond just electricity generation. As the shares of variable renewables increase in power systems worldwide, hydropower’s capacity to provide ancillary services becomes increasingly valuable.

However, most markets do not currently recognise or remunerate this added value in full. In some markets, hydropower would benefit from being allowed to increase its participation in energy markets, including sub-hourly markets, allowing the power system to benefit from its full flexibility. The development of forward markets could also benefit hydropower resources that must schedule their production.

Additionally, developing a system through which demand response can be brought to the market would help reduce market power in both energy and reserves markets, enabling hydropower (and other generators) to receive competitive energy and ancillary service prices.

In a nutshell, markets should take advantage of the flexibility offered by hydropower, while rewarding its storage capabilities and regulation services, such as dynamic reactive.


Que: What emerging technologies and investment trends are currently shaping the global renewable energy sector and how might they influence future developments?

Ans: I believe we must adopt an adaptive management approach with a view to dams and reservoirs. This includes the point that ecological resources are dynamic in nature and their management as well as conservation must be adapted to needs in the environmental context. Therefore, a clear measurement of the needs of communities in which people believe that the water infrastructure is important, should be included. Public awareness plays a vital role before we arrive at or expect social acceptance of renewable energy. Public opinion is a key factor in the development and deployment of energy systems.

Perspectives of those living near current or proposed energy developments are particularly critical because they have strong interests in the project and their opinions affects siting of technology. Typically, primary factors which influence local opinion towards energy projects hinge on environmental and ecological impacts, socio-economic impacts, public participation and consultation practices associated with development, including availability and transparency of information. This should guide the creation of more effective communication strategies and hydropower policy development.

Public opinion about energy sources is a critical factor in successful development, installation and leverage of new energy technologies. It is especially crucial to understand the opinions and attitudes of people who live near new energy developments. Local community members can oftentimes provide the greatest insight into the factors that influence the perceptions of energy technologies and help mitigate them. In conclusion, therefore, in order to realize its hydropower potential which in turn will help the country meet its developmental and environmental goals, a wholistic, long-term and co-optive view is necessary.

Overall, considering the importance of dams for water security, I think there is generally greater acceptance for water infrastructure. Since ecological awareness determines ecologically oriented water policies, the relationship between water security and dam acceptance must rest on factual and inclusive analysis. These measures fall under what I consider the overhang of a larger and lateral view. From a fundamental point --- hydropower simply as the use of movement of water to create energy is the world’s largest renewable resource. The four most exciting developments in this area, ones which are altering ground realities and attitudes are:

Mini-hydro-- small scale, run-of-the river projects minimize adverse impacts on local ecosystems. These use gravity hydraulic machines like Archimedes screws, turbines and even running pumps as turbines.

Digitization-- digitization is altering the sector completely. From helping balance supply and demand to anticipating required maintenance to creating ‘digital twins’ which trial different modes of operation. This is especially important as grids become increasingly dependent on intermittent wind and solar, forcing energy operators to become more agile.

As far as work-in-progress is concerned, one of the greatest challenges for achieving good ecological status of rivers is the restoration of connectivity. Building fish passages is known to restore upward migration. Fish-friendly infrastructure is a necessary aspect; a hygiene factor almost. Fish ladders are a solution among others.

Tidal power is the fourth, perhaps the most impressive of these four tectonic changes. It is an emerging form of hydropower which uses the movement of tides to generate electricity. From turbines in tidal streams to building dam like barrages, tidal power has enormous potential.

The basics of hydropower have not changed much in the last 120 years. What has changed is the fresh perspective on making it more environment friendly {basin planning for example}.

As we see the effects of climate change we can re-prioritize how water is put to use and adjust the timings of that water. I believe sustainable hydropower projects must contemplate the needs and challenges of local communities and consider the potential socio-economic and environmental impacts, even more so, because renewable energy projects require new technologies and knowledge. The cost-effective and reliable output of electricity and tailored social investments empower entire communities. We must, therefore, take a best practices approach based on sustainability, co-option and technological excellence with sensitivity and responsibility India has committed to reduce emissions intensity per unit GDP by 33 to 35 percent below 2005 level by 2030, and achieve 40% cumulative electric power installed capacity of non-fossil fuel based energy resources.

By 2030, the aim is to achieve 500 GW installed capacity of renewables. India is committed to renewable energy generation capacity of 500 GW and meet 50% energy needs through renewable means by 2030. Today, India is one of the few G20 countries on track to achieve targets under the Paris Agreement. Buoyed by the increasing policy support from the Government, the International Energy Agency (IEA) expects the country to add 26,000 megawatt (MW) of hydropower projects by 2030. Climate change and other negative effects of using fossil fuels for power generation along with growing concerns over energy security are driving the expansion of hydropower around the world.

The Indian government has taken multiple initiatives and implemented various policies to promote renewable energy generation in the country. In June 2021, India launched the Mission Innovation CleanTech Exchange, a global initiative that will create a whole network of incubators across member countries to accelerate clean energy innovation.


Que: What role do government initiatives like SAUBHAGYA Yojana, RDSS and domestic solar and wind manufacturing play in the energy security effort?

Ans:
The current state of affairs and the outlook, both, are very favourable and positive for India. I am very confident that India will exceed the target of 500 GW of renewable energy capacity by or before 2030. In the last five years our renewable energy capacity addition has been the fastest in the world, barring China. Data supports this: our present renewable energy capacity is 180,000 MW. The country had said by 2030 40% of its energy capacity will come from non-fossil fuels. We are have already breached this at 44% -- the government as now upped the target to say that by 2030 as much as 50% of our energy will come from non-fossil fuels. I personally am optimistic of this going up to 65% Therefore, the sustainable and renewable energy generation in India is sufficient and growing at a rapid pace to address all existing and projected requirements. I see a continued and faster growth of the renewable energy sector with hydropower as a dominant player. I also see adoption and application of better, de-carbonized, sustainable and re-cyclable building materials which will help us come full circle on green energy.


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