Knowledge Initiatives - A Report of Energy Division, is intended to put together in one place, the products of collaborative efforts of NITI Aayog and its national and international partners in the energy space. Over the years, the Energy Division of NITI Aayog has strived to harness the competencies of the best in class energy think-tanks in India and overseas abroad, towards devising a sustainable and secure energy pathway for the country. In the above pursuit, it has provided knowledge inputs to the line energy Ministries/Departments, both on the demand and supply sides.
The report tries to answer the key question of ‘how must the Indian power system evolve if India chooses to put RE at the core of the future system, rather than at the periphery?’ The objective of the document is to capture and synthesis the inputs of stakeholders in the renewables sector at the national and state levels in India as well as internationally.
The paper suggests a framework for an integrated policy strategy for rapid RE implementation that complements both the existing and planned conventional power projects. The framework includes:
For India to capture the benefits of renewables as “the main occupant of the house” will require the rethinking and reengineering of institu¬tions, the redefinition of policies, the re-tuning of power grids and systems, and the replacement of old habits with new ones.
Ministry of Environment and Forests (MoEF), Government of India, requested the Ministry of Power (MoP) to provide inputs for determining India’s Intended Nationally Determined Contributions (INDCs) for submission to COP-21 (Paris). NITI Aayog was requested to provide inputs on determining the INDCs via energy projections till the year 2030. The Report responds to the above request of MoP to NITI to provide the projections sought by MoEF using the IESS, 2047. India Energy Security Scenarios, 2047 (IESS) is essentially a bottom-up model. In the Indian setting, where different energy sources are planned separately, it becomes important to identify sectoral targets and yet subject them to stress tests in an aggregate scenario. Accordingly, it was possible to adopt electricity projections for the year 2030 using IESS. The other forms of energy (solid and liquid) were generated using the same assumptions which were applied for electricity, thereby allowing estimations of energy efficiency and energy mix as well.
Residential and Commercial sectors account for 29% of the total electricity consumption in India and this share is rising at a rate of 8% annually. The Indian commercial sector exhibits a massive savings potential on the demand side, through energy efficiency interventions. There is also an opportunity, which can be leveraged on the supply side by introducing renewable energy generation in buildings. For this, there is a need for tackling various gaps including the problem of information asymmetry through the propagation of project experiences and best practices and the issue of transactional barriers.
The report talks about how NITI Aayog has set a national precedent by initiating two types of energy efficiency interventions:
This paper tries to address information asymmetry and capture the above interventions to showcase NITI Aayog as a demonstration project in energy efficiency interventions and map the way forward in terms of an easier and widespread adoption of energy efficiency measures in buildings.
Energy security is a critical strategic and economic issue for India. The National Action Plan on Climate Change launched by the Hon’ble Prime Minister on June 30, 2008 emphasized the need for a graduated shift from economic activity based on fossil to one based on non-fossil fuels, and from reliance on nonrenewable and depleting sources of energy to renewable sources. The Planning Commission thus constituted a task force in June 2013 and identified various issues. The report brings out the broad suggestions made by the members of the Task Force. Given the severity of the situation, the task force focused on certain key areas and suggested early action measures.
India’s coal generation capacity and installed electricity generation capacity is significantly higher than that of peak demand. Despite this, some parts of the country face acute power shortages. In addition, India’s major advantage is that its renewable energy potential is vast and largely untapped. But to capture the benefits of RE, India would need to make available necessary capital and get comfortable with managing the variability and uncertainty of RE generation in conjunction with the existing and planned fossil fuel-based and large power plants. With these challenges in mind, the NITI Aayog constituted an Expert Group in June 2015 to assess the requirements and utilization of public finance for achieving 175 GW RE by 2022.