24/10/14
India industries confident of 2030 renewable energy aim
Mumbai, 14 October (Argus) — Indian industries are confident about reaching the
country's renewable energy target of 500GW by 2030, senior executives said at
the Financial Times' Energy Transition Summit in New Delhi last week. This is
especially given strong capacity installation of solar and wind projects in the
coming years, delegates heard. India's renewable energy capacity stands at
199.5GW as of August, a rise of 12pc on the year, data from the Central
Electricity Authority show. "India's [renewable] power sector has already grown
at a [compound annual growth rate] of nearly 20pc in the last 10 years … The
pace at which some of the bids are coming, we should reach 500GW by 2030," said
domestic utility Tata Power's chief executive officer Praveer Sinha. A record
69GW of renewable energy tenders were issued during the April 2023-March 2024
fiscal year, surpassing the government-mandated target of 50GW. Tata Power is
operating 4.5GW installed capacity of renewable energy that produced 64.6Th of
electricity in the April 2023-March 2024 fiscal year. It aims to add another 5GW
of installed capacity in the coming years, underscoring its commitment to
providing round-the-clock renewable energy through solar, wind, and pumped hydro
storage projects, Sinha added. Indian steel manufacturer ArcelorMittal Nippon
Steel (AMNS) also plans to add 1GW/yr of renewable energy capacity for its
captive power consumption, managing director Dilip Oommen said. AMNS has
developed a 975MW hybrid renewable energy project at Alamuru village in India's
southern state of Andhra Pradesh. The project will generate 661MW of solar and
314MW of wind power capacity, which will be integrated with a pumped hydro
storage facility owned by renewables developer Greenko to overcome the
intermittent nature of wind and solar power generation, ensuring round-the-clock
power. Power generated from the solar and wind sites will be connected from
Andhra Pradesh's Kurnool district via a 400kV interstate transmission system up
to AMNS' Hazria facility. The firm is also considering using hydrogen in its
electric arc furnace, but remains skeptical about the cost economics. "At
present, the cost of hydrogen is $3.50/kg," Oommen said, adding that if this
falls below $2/kg, it would be feasible for commercial use at its facilities.
The reduction in the cost of renewable power generation over the last few years
has also raised interest in the sector, incentivising the coal-dominated eastern
regions of India to adopt renewables, said Indian independent power provider
Ampin Energy's chief executive officer Pinaki Bhattacharya. The domestic steel
sector, one of the country's largest carbon emitters, is looking at ways to
reduce emissions in light of the policies under the EU's carbon border
adjustment mechanism (CBAM), which will take effect on 1 January 2026. This was
echoed during a session on 9 October when India's finance minister Nirmala
Sitharaman noted that India has been consistent in promoting domestic investment
in renewables and establishing transmission lines. But she described CBAM as "a
trade barrier" that could hurt investment in India's heavy industries and
hinderthe country's transition away from fossil fuels. CBAM is a "unilateral"
and "arbitrary" measure, which would "not be helpful" for India, she said,
adding that India's concerns "would definitely be voiced" with the EU. Her
sentiments were in line with that of commerce minister Piyush Goyal, who said
last year that India will not accept any unfair taxes on steel that the EU
imposes under the CBAM. Coal to renewables switch "We are not on track yet to
displace coal," said Indian not-for-profit thinktank Centre for Science and
Environment's director general Sunita Narain, when asked about India's
transition from coal to renewables, considering that coal still dominates the
country's electricity mix. Renewable energy generation capacity has currently
increased to 13pc of the total electricity mix, but the country needs to hit the
35pc target by 2030, she added. India's power generation continues to rely on
coal because of an abundant supply of the fuel as well as its cheaper price over
other alternatives. Out of India's total installed capacity of 451GW, coal
comprises 48.27pc, followed by solar at 19.84pc and wind at 10.47pc, as of
August, data from government think tank Niti Aayog show. By Ankit Rathore Send
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