India’s Push for Greener Energy
Discuss about the Evolution of Economic System.
Water, food and energy are three basic elements that ensure the survival of living organisms in the planet earth. With ever evolving environmental situation, development of the world energy sector has been entering into a new historical period, where the factor of production is shifting from fossil fuel to the low carbon and cleaner resources (Harper et al., 2017). Considering the deteriorating situation of the world environment due to the rise in the carbon footprint around the world, it has now become too much important for the respective governments to look into only those factors that can provide greener energy at the lowest externality on the environment. Otherwise, those days are not far, where our known planet earth will become unknown to us and it will turn itself from an inhabitable place to a failed state (Talwar & Mathews, 2018). Though it is a debatable matter, however, researchers has argued that due to the historical performance of the developed nations world is now suffering from the drastic climatic changes and owing to drastic exploitation of the natural resources like oil and coal, energy sector around the world is suffering from the shortage of their supply (Joseph & Shahidehpour, 2018). Being the scare resource as well as harmful for the environment, governments of the respective nations are moving towards greener technology and renewable energy which can revolutionize the energy sector around the world. Developing states are the recipient of the worst hit of the scarcity of energy resources and various international obligations has also harmed their interest to produce more energy at a cost of the environment. Under this scenario, countries like India has opted for advanced battery system, which are meant to provide power on demand rather than utilizing the base load electricity (Srikanth, 2018). It will produce power from the sunlight and store the same to provide energy whenever needed and this according to the researcher is the latest energy revolution in the world.
Considering it, this report is meant to analyse the factors that will affect the pace of uptake of this latest technology and provide comment on the same to make it an efficient option for the population of the country. In addition to this, the report is focused to study the application of the system and evaluate the economy of solar and batter stored electric supply so as to predict the future trend of this latest technology. Being the advisory framework to the Ministry of New and Renewable Energy (MNRE) of the India, this report will provide recommendation to transform this latest technology into an effective and trustworthy mechanism that can be utilized as the alternative source of power in future.
Basics of Advanced Battery System
India is one of the developing nations that has been trying to harness the greener source of energy since decades. Presently it is perusing green shift in its power sector at a rapid speed across various industries with aim to reduce the dependence on the black fossil fuelled energy economy, however financial burden on the government due to this shift is one of the main burden, which is stopping the nation from any progress. According to the Sindhu, Nehra & Luthra, (2016), India’s strategy to shift towards greener energy through greener power industries utilizing the tool from the local content in the international trade arena has also been facing hurdle in recent days that has forced the government to think for alternative measurements. It is one of the conventional wisdom of the state to powering its industries with the same early industrialization powers that are sourced from the black fossil fuel in the footprints of China as the neighbouring nation has been the biggest producer of coal and coal fire electric power (Sindhu, Nehra & Luthra, 2016). It was also assumed that following the predominant market leader China, India will also become the next major consumer as well as producer of the fossil fuel lead power surpassing the china with its vast stock of coal and crude oil, however, as shockingly as china’s economic development, India has been shifting towards greener energy at a rampant speed (Kumar, Dubey & Sonar, 2015). As the thrust to do so lies within the deteriorating urban air condition, which according to the research is direct outcome of the burning of fossil fuel. In addition to this, it is off course a major reason for the recent shift of the state towards greener energy lies within the promise made by the country’s export and manufacturing industry of tomorrow to utilize clean and greener energy for the future economic prosperity. According to the October 2017 review of International Energy Agency, it has been found that India, China and the US are the foremost players, who are harnessing the greener energy across various industries and it has been estimated that by the 2022, these countries will produce 30% of total energy demand through the greener energy (Pegels et al., 2017).
To be specific, India has been targeting to shift to the greener energy with the help of the advanced battery systems to store energy from renewable sources while eliminating power source from the traditional power stations. With the aspiration to gain 100% electric vehicle sales by the year 2030, India can rise among the top nations who manufacture storage batteries. India’s market for the batteries is estimated to rise at 300 billion dollar by 2030 from 2017 (Safari et al., 2018). According to the estimation, by 2030, India will be producing one third of global battery demand it the nation achieves its aim of rapid transition as show in the figure 1. Among many issues, cost of this advanced batteries is one of the main reason that has been hindering its growth stage, however, Indian being into the market, it is expected that it will reduce the global price sharply with its lower cost of production (Nagamani et al., 2015). In order to understand the factors like price, that can hinder the growth of this latest greener technology, it is essential to understand the basics regarding the advanced battery system. Thus, moving forward, this report will put some light on the basics of this system, and then it will portray the Economy of solar and battery stored electric supply in the country.
Economy of Solar and Battery-stored Electric Supply
Since the last two decades, renewable technologies has matured to a large extent that has been making shift in the global energy mix for the deployment across various sectors like commercial, institutional, industrial and residential areas through the means of cost competitiveness. This new greener energy source is bound to enhance the overall bankability of the nation on the greener power at an affordable rate during the foreseeable future (Moallemi et al., 2017). It is a well-known fact that both the wind and the solar technologies are infinite in nature, however they are variable source and lacks dispatch ability in order to keep the electric grid stable. Independent and continuous deployment of the green technologies id not highly viable through these renewable resources unless there is a provision of energy storage that allows to store clean wind and solar power instead of exporting it to the other place. Battery driven energy storage system has been consistently held against investment, however cost effectiveness, safe and ever evolving storage technologies of the India can change the economies of allowing the cleaner energy power into the power generation stream (Mathur, Pandey & Roy, 2017). One of the main reason for the change in the energy storage demand is basically driven by the changing utility landscape of the nation that need more storage capacity to comply with the rapidly increasing demand. Delivery of the reliable, uninterrupted and stable source of greener energy is the ultimate need of the future generation for the survivability in the planet earth. It can reduce the ineffectiveness of the rural areas to have electric at affordable price and allow the government to shelf its burden of carbon footprint by a large extent (Tripathi et al., 2016). Not only this, energy storage through the battery driven system will allow to overcast the drawback of the sun and wind lead power generation system that fails to produce power during the dusky or rainy season. However, how India can do this, a blue print for the same is mentioned below.
India’s ambitious plan to become one of the largest producer of the battery driven greener energy is sub divided into three different tier according to the details provided by the MNRE.
Stage one: developing the batter pack producing capacity and along with this establishing the multi stakeholder research and development consortium in the state. India’s cumulative batter requirement will be at 120 GWh within the time frame of 2017 to 2020 and the trajectory to 100% battery sales by the year 2030 (Talwar & Mathews, 2018). During this period, it is assumed that India will produce battery pack from the imported cells, thus India can capture economic opportunity through the endeavour that can range from 25 to 40$ of the total economic opportunity through the sales of the battery. The value of the battery market of the state will be around 0.4 lakh crore to 0.5 crore (Agarwal, Singhal & Darak, 2018).
India’s Three-tier Plan for Advanced Battery System
Stage two: this period will start from 2021 and it will end by the end of the 2025 through which, the state will develop supply chain, capitalize its investment on the research and development of the newer battery technologies that can come up as the alternative of the fossil fuel drive electricity (Mohanty et al., 2017). During the same period, the state is aimed to set strategy and planning for the battery cell manufacturers through the realization of the benefits of the consortium driven approach introduced during the first phase of the greener shift. During the second stage, it is expected that the battery requirement for the state will be of 970 GWh, where the country will manufacturing packs sourced from the foreign nations (Miroshnikov et al. 2016). According to the estimation, during this period, there will be economic values as high as 2.0 lakh crore to 2.9 lakh crore and the market capitalization will remain 25 to 40% of the total economic opportunity (Pandey et al., 2016).
Stage three: this will be third and the final stage of the nation’s greener shift to the renewable energy that can be stored and utilized during the demand situation rather than depending upon the fossil fuel led power sources. During this period, end to end scaling of the manufacturing capacity of the batteries, specifically focusing on the battery cell capacity will be emphasized which is aimed to provide much amount of benefit to the country to gain higher market share in the coming days. During the third stage, which ranges from 2026 to 2030 will be required at lead 2,410 GWh of power (Akshay Urja, 2016). Considering the fact that India will be able to produce both the packs and cells, the market capture is expected to rise to 80% out of the total economic opportunity. As per the estimation, the economic value of the endeavour will be as high as 9.3 lakh to 13.7 lakh crore INR (Singh et al., 2016).
Overview of the finding of the three stages of the battery driven energy source of the India. Depending upon the above mentioned forecasts by the MNRE it can be perceived that there will be various issues arise during the implementation of the plan, which primarily lies within the research and development, factors of production, supply chain management, market capitalization, production cost and the overall market price of the product. In addition to this, ability of the system to provide uninterrupted power and being evolve itself as the alternative to the fossil fuel driven source will be key issue (Akshay Urja, 2016). In order to understand the ways to overcome the issues that the new technology is facing, it is important to understand the technology of the same and gather knowledge regarding the balance of the system is crucial. Next section of this report will portray the details regarding the technology of the storage battery and its application and elaborate the details regarding the balance of the system.
India is one of the developing nations that suffers from the lack of electricity till in the 21st century due to the ever rising demand of the energy and its inability to harness the renewable source of the energy completely in present date. There are more than 1.3 billion people in the state who still not have access to the electricity (Alstone et al., 2015). Under this situation, government of the country was forced to rethink about its energy strategies and they come up with the solar batteries that can power the houses, industrial areas, automobiles and all the other things that need electricity to operate. Though the wind and solar power was present in the international market and in small numbers in the country, it was not accepted by most of the population of the state due to large cost of installation (Karakaya & Sriwannawit, 2015). Thus it has become evident for the government to bring in other plans like storage battery that can provide power all around the irrespective of the weather at a comparatively lower cost to the solo wind or photo voltaic cell. Under this new regime photo voltaic cells come along the lithium ion batteries that can produce electricity of 28 MW to 40 MW energy utilizing the powers from the wind or solar energy and provide electricity to all the electric appliances irrespective of the weather condition (Den et al., 2017). This new technology can be utilized in various field like households, vehicles, mining sector, pumping stations, weather tracking station, Oil and gas sites and many more, that makes it a universal alternative source of the fossil fuel driven power supply. Thus, it is one of the renovating idea that can change the future of the country as well as to the world.
BOS or the Balance of System component of a grid scale energy storage is the future of the India’s energy demand in the future. Balance of the system is the ability of the system to store energy per unit of value and according the estimation, as the technology will grow it will face reduction in the same (Den et al., 2017). With the higher incentive to install behind-the-meter batteries will provide the users stability to have energy irrespective of the natural condition and in addition to this it can provide much amount of cost benefit to the users rather than utilizing only the front-of-meter as the source of the power. As the research and development will enhance, India will be able to produce large scale batteries that can power up the large scale industries and provide backup power to the same in absence of the solar or wind power. It will maintain the balance of economy system as well as aid the country to reduce its carbon footprint. According the estimation, during the next five year, there will be fall in the cost by the 40%, which will further enhance the balance of the system through the cost utilization (Kannan & Vakeesan, 2016).
Utilising the battery driven power supply can aid the user to have cleaner power at lower cost and the economy of the solar, wind along with the batter stored electricity supply is as follows (Rehman et al., 2015):
- In presence of higher temperature, photo voltaic cells can reduce the production and its longevity. Thus, if there is battery, then the user can switch to the sorted power and turn the utilisation of the PV cell.
- Under the shading or clouding, PV cells or due to lack of wind, wind turbines fails to operate. In this situation, stored energy can provide backup power.
- Dust accumulation is major issue that can reduce the productivity of the PV cells. If there is battery, then it can provide service irrespective of the nature of the environment.
Considering these, it would be ideal for the Indian cities to opt for this latest technology and move forward from fossil fuel to the greener energy.
From the above discussion it can be found that the major issue that will hit the India’s interest to shifts its energy production from the fossil fuel based source to the greener technology is large. As per the analysis research and development, factors of production, supply chain management, market capitalization, production cost and the overall market price of the product. In addition to this, ability of the system to provide uninterrupted power and being evolve itself as the alternative to the fossil fuel driven source are the key issue. Under this situation, this report can make the following recommendation to gauge the situation:
Research and development: one of their important sector that need to be modernized by a large extent in the case of the India’s desire to become the largest producer of the batteries that can provide supply of power in absence of the sun or the wind. Though the technology is not new, however the idea is that makes it essential to go for constant research, otherwise it would snatch away the market for the state, when tech giants like China is present neighbour to it. As it has been mentioned earlier, during the 2030, the power demand will rise exorbitantly that makes it essential for constant research and development in order to become self-reliance.
Factors of production: battery technology requires skilled labours for the production, which India lacks by a large number. Thus it would be ideal for the government to introduce more vocational training sessions and courses in various places around the state, so that more number of the skilled labours can be produced.
Supply chain management: During the various stages of the transformation of the Indian power demand from the conventional black fuel to the greener sources the nation will require an integrated and end to end integration of the transportation for the proper implementation of the program. As in the future there will be rise in the demand of the battery cell from the state, developing a plan for the battery cell manufacture and transportation will be the ultimate need because it will revamp the manufacturing capability and enhance the research opportunities for further development.
Production cost and market price: Batter storage of the electricity is not a newer technology, however, utilization of the same as the alternative source of the power generated through the black fossil fuel is the newer idea, which has high value of ampere. In addition to this, India presently imports the cells and packs the same for final sell that makes the price of the same higher. Thus it would be ideal for the Indian authority to go for end to end coordination between the departments so as to ensure lowest cost can be achieved. Indian government can utilize the subsidy channel for the domestic market during initial days and export promotion for the foreign market in order to entice the market demand for their product.
Market capitalization: from the above analysis it can be found that there is huge potential in front of the India as the producer of the battery driven power generation due its economies of scale in the production of the same. According to the estimation, there is scope in front of the state to become the largest producer in the world that can produce one third of the total battery demand of the world. However, as the production becomes available around the world, there will be rise in the competition from the less developed countries on the market share of the India. Under this, situation, India need to go for the export promotion and it need to control the import of the foreign batteries into its domestic market so as to ensure the steady amount of market capitalization.
Conclusion:
This report has showcased the various aspect related with the growth of the battery driven power supply of the India, which is the latest trend and future of the greener energy around the world. Under the deteriorating environmental situation due to the rapid mechanization of the developed nation during the era of industrialization has lead the environmental situation around the world towards a worse situation. As it has been found by the report that the developing nations are the worse hit by the present situation of the environmental situation around the world under the stringent environmental policies decided by the international bodies that are mainly operational under the whip of the developing nation and this has forced them to move towards greener technologies. Considering the case of the India, the report has found that the situation for the state is more panic stricken than the other countries due to the present pressure of ever rising demand of energy under the era of rapid growth for the nation. Though the state has been trying since decades to evolve itself as one of the state that depends largely on the renewable energy rather than the black fuel, however various factors has constrained its growth. The report has found that research and development, factors of production, supply chain management, market capitalization, production cost and the overall market price of the product. In addition to this, ability of the system to provide uninterrupted power and being evolve itself as the alternative to the fossil fuel driven source are the key issue. In order to overcome this issues, the report has mentioned various recommendations through studying the mechanism, balance of the system and the economy of the new system. For instance, the report highlights that, India can become the one third producer of the total batter demand around the world at low cost utilizing its vast factors of production and the cheap labour availability. To conclude, it would be idle to state that, if the recommendations as mentioned below can be followed, then it can easily overcome the hurdles in front of the depicted ambitious project of the India.
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