What role renewable energy will be playing in Net Zero?

The world is moving towards a net-zero future, and renewable energy is playing a crucial role in achieving this goal. Renewable energy technologies like solar and wind are key to reducing emissions in the electricity sector, which is today the single largest source of CO2 emissions. In our pathway to net zero, almost 90% of global electricity generation in 2050 comes from renewable sources, with solar PV and wind together accounting for nearly 70%. Renewable power, electrification and the circular economy have a key role to play in reducing energy intensity, on top of the conventional energy efficiency technologies. Annual renewable energy share growth in primary energy needs to accelerate eightfold from recent years, for reaching net zero by 2050.

What is Net Zero?

The balance between the amount of greenhouse gas emissions produced and the amount removed from the atmosphere is referred to as net zero. Achieving net zero means cutting emissions to as close to zero as possible, and compensating for any remaining emissions by enhancing natural or artificial sinks, such as forests or carbon capture technologies³. Net zero is a crucial goal for the world to limit the global temperature rise to 1.5 °C above pre-industrial levels, as agreed in the Paris Agreement. To reach net zero by 2050, the global energy system needs to undergo a radical transformation, shifting away from fossil fuels and towards clean and efficient energy sources, such as renewables.

What role renewable energy will be playing in Net Zero?

Because of the increased reliance on fossil fuels for power generation, power generation is a major source of environmental pollution. Fossil fuels account for more than 60% of total global power generation. Coal, a major source of GHG emissions, accounts for more than 35%, with natural gas accounting for more than 23%. To achieve the net zero target, a greater emphasis has been placed on clean energy generation sources such as wind, solar, geothermal, and nuclear. Clean energy currently accounts for less than 40% of total power generation, with renewable energy accounting for around 28%.

With a greater emphasis on GHG reduction, the share of clean and renewable energies in total power production will rise to approximately 50% and 43%, respectively, by 2030, and approximately 74% and 65%, respectively, by 2050. If countries around the world commit to the "Net Zero Emission" target, the power generation scenario will change dramatically. The proportion of clean and renewable energies will rise dramatically. According to the International Energy Association (IEA), the share of clean and renewable energies will increase to 72% and 61%, respectively, by 2030, and 96% and 88%, respectively, by 2050, if countries pursue the "Net Zero Emissions target of 2050."

Renewable energy is energy that comes from natural resources that are constantly replenished, such as solar, wind, hydro, geothermal and biomass. Renewable energy can provide electricity, heat and transport fuels without emitting greenhouse gases or air pollutants. Renewable energy can also enhance energy security, reduce energy poverty and create jobs and economic opportunities.

Net zero is a powerful driver for the global expansion of renewable energy. According to the International Energy Agency (IEA), renewable electricity generation increased by 7% in 2020, despite the COVID-19 pandemic, and accounted for 29% of total global electricity generation - a new record. However, this is still far below the level required to achieve net zero by 2050. The IEA estimates that almost two-thirds of electricity generation needs to be renewable by 2030, and almost 90% by 2050¹.

To reach these targets, the IEA suggests that the world needs to double the rate of transition to renewable energy in the next decade, adding 12% more renewable capacity each year until 2030. This would require a massive increase in investment, innovation and policy support for renewable energy across all sectors and regions. The IEA also highlights the need for greater integration of renewable energy into power grids, buildings, industry and transport systems, as well as more flexibility and storage options to balance supply and demand¹.

Achieving net zero by 2050 is a daunting but feasible challenge that requires unprecedented global cooperation and action. Renewable energy is a key component of the solution, as it can provide clean, affordable and reliable energy for all while reducing greenhouse gas emissions and enhancing environmental and social benefits. Promoting renewable energy globally is not only a necessity but also an opportunity to build a more sustainable and resilient future for humanity.

Wind energy in context to Net Zero.

Wind energy is one of the most important renewable energy sources for achieving net zero by 2050. Wind energy can be produced onshore or offshore, depending on the location and availability of wind resources.

According to the International Energy Agency (IEA), wind energy accounted for 29% of total renewable electricity generation in 2021, making it the leading non-hydro renewable technology. Wind energy generation increased by a record 273 TWh in 2021, up 17% from 2020, thanks to an unprecedented increase in wind capacity additions in 2020, which reached 113 GW, mainly driven by policy deadlines in China and the United States¹².

However, to reach net zero by 2050, wind energy generation needs to grow much faster and reach about 7 900 TWh in 2030, almost four times the level of 2021. This would require an average expansion of approximately 18% per year during 2022-2030, and an average annual capacity addition of almost 250 GW, more than double the record growth of 2020.

To achieve this level of sustained capacity growth, the IEA suggests that more efforts are needed to facilitate permitting, support site identification, decrease costs and reduce project development timelines for both onshore and offshore wind farms. The IEA also highlights the need for greater integration of wind energy into power grids, buildings, industry and transport systems, as well as more flexibility and storage options to balance supply and demand.

How Wind Energy Can Help Produce Green Hydrogen

Hydrogen is a clean and versatile energy carrier that can be used for various applications, such as transportation, heating, and industry. However, most of the hydrogen produced today comes from fossil fuels, which emit greenhouse gases and contribute to climate change. To achieve a net-zero carbon economy by 2050, we need to produce hydrogen from renewable sources, such as wind and solar energy. This is called green hydrogen.

What is Green Hydrogen?

Green hydrogen is hydrogen that is produced by splitting water molecules into hydrogen and oxygen using an electric current generated from renewable energy sources, such as wind or solar. This process is called electrolysis and it does not emit any carbon dioxide or other pollutants into the atmosphere.

Why use wind energy for green hydrogen?

Wind energy is one of the most abundant and cost-effective renewable energy sources in the world. It can provide electricity for electrolysis at any time of the day or night, as long as there is wind. Wind energy can also help overcome some of the challenges of integrating renewable electricity into the grid, such as variability and congestion. By converting excess wind power into hydrogen, we can store it for later use or transport it to other locations where it is needed. This way, we can make the most of the available wind resources and reduce the need for fossil fuels.

How does it work?

There are different ways to use wind energy for green hydrogen production. One option is to install electrolyzers at or near wind farms and use the direct current (DC) output of the wind turbines to power them. This reduces the losses and costs associated with converting DC to alternating current (AC) and transmitting it to the grid. Another option is to connect electrolyzers to the grid and use the AC electricity from wind farms or other sources to power them. This allows more flexibility and scalability in terms of the location and capacity of the electrolyzers.

What are some examples?

Several projects around the world use wind energy for green hydrogen production. Here are some examples:

• Windgas Falkenhagen: This project in Germany uses six Cummins HySTAT® 60-10 electrolyzers to convert excess wind energy into hydrogen and inject it into the natural gas grid. The project has been operating since 2013 and has produced more than two million kWh of hydrogen in its first year.
• Hychico:This project in Argentina uses two Cummins HySTAT® 60-10 electrolyzers to produce hydrogen from wind energy at the Diadema Wind Park. The hydrogen is injected into natural gas fields and recovered for use in repowering units. The oxygen generated by electrolysis is also stored and transported for use in industrial and high-purity applications.
• Western Sydney Green Gas Project:This project in Australia uses a Cummins HyLYZER® 200-30 electrolyzer to produce green hydrogen from solar and wind energy. The hydrogen is blended with natural gas and injected into the Jemena Gas Network in New South Wales – Australia's biggest gas distribution network – to replace natural gas with a zero-emissions alternative.

What are the benefits?

Using wind energy for green hydrogen production has many benefits for the environment, the economy, and society. Some of these benefits are:

• Reducing greenhouse gas emissions and air pollution by replacing fossil fuels with clean energy
• Enhancing energy security and diversity by using domestic and abundant renewable resources
• Creating new jobs and industries in the green hydrogen sector
• Supporting innovation and research in renewable energy technologies
• Improving grid stability and reliability by providing flexible and dispatchable power
• Offering new markets and opportunities for wind power producers

What are the challenges?

Despite its potential, using wind energy for green hydrogen production also faces some challenges that need to be addressed. Some of these challenges are:

• High capital and operational costs of electrolyzers and other equipment
• Low efficiency and durability of electrolyzers
• Lack of infrastructure and standards for hydrogen storage, transport, and distribution
• Regulatory and policy barriers to green hydrogen development and deployment
• Public awareness and acceptance of green hydrogen as a safe and viable energy option

What is the role of wind energy in green hydrogen?

Wind energy is one of the renewable sources that can be used to produce green hydrogen, which is hydrogen that emits no greenhouse gases. Green hydrogen can be used for various applications, such as fuel-cell vehicles, ammonia production, and natural gas substitution.

To produce green hydrogen from wind energy, an electrolyzer is used to split water into hydrogen and oxygen using electricity generated by wind turbines.

The hydrogen can then be stored, transported, or injected into the gas grid. The oxygen can also be used for industrial or high purity applications.

The future of using wind energy for green hydrogen production looks promising, as more countries and companies are investing in this field. Wind energy can help clean hydrogen contribute to a zero-carbon future by providing a flexible, low-carbon power supply that can decarbonize hard-to-abate sectors such as heavy industry, long haul freight, shipping, and aviation.

What is Scope of 1, 2 and 3 Emissions and why does it require urgent attention?

Carbon emissions are a global issue. For many years, experts have told us that if we do nothing, there will be extreme starvation, mass migration due to flooding, the collapse of the financial systems, and many other socioeconomic catastrophes. If COVID-19 anxiety caused businesses to worry, climate change will make them even more nervous. Leaders and executives are increasingly paying more attention to sustainability and reevaluating their goals and purpose because of this. Sustainability should not be viewed as merely a part of corporate social responsibility; it is a business need.

Companies must lessen their influence on the environment. One of the most important methods to achieve this is to lessen their carbon footprint, which begins with keeping an eye on carbon emissions.

Carbon emissions account for 81% of total GHG emissions, with corporations contributing significantly. Methane (10%), nitrous oxide (7%), and fluorinated gases (3%), make up the remaining GHG emissions. The crucial first step in lowering CO2 emissions for businesses is to track and report them. Companies must categorize their carbon footprints into three categories to achieve this.

For GHG accounting and reporting objectives, three "scopes" (scope 1, scope 2, and scope 3) are defined to help differentiate direct and indirect emission sources, promote transparency, and provide utility for different industries and different types of climate policies and business goals. This standard precisely defines scopes 1 and 2 to prevent multiple organizations from accounting for emissions under the same scope. The scopes can therefore be used in GHG projects where double counting is important.

Scope 1 Emission

Direct emissions from company-owned and -controlled resources are known as scope 1 emissions. In other words, a sequence of business acts directly causes emissions to be discharged into the environment.

Scope 2: Indirect Emissions - Owned.

Scope 2 emissions are indirect emissions produced as a result of generating energy that has been acquired from a utility provider. In other words, all GHG emissions from the use of purchased energy, steam, heat, and cooling are emitted into the atmosphere.

Electricity will be the only source of scope 2 emissions for the majority of organizations. Simply put, there are two categories under which energy is consumed: The electricity used by the end- user is covered by scope 2.

Scope 3: Indirect Emissions - Not owned

Scope 3 comprises emissions that are brought on by operations from assets up and down the firm's value chain, but not by the company itself or as a result of their ownership or control of such assets. An example of this is when we buy, use, and discard products from vendors. Scope 3 emissions cover all sources other than those listed in Scopes 1 and 2.

How simple is it to cut our emissions in scopes 1, 2 and 3?

A factory can seek ways to lower the carbon cost of its production processes. There are many factors beyond emissions alone, such as cost and practicality, but we can pick whether our fleet has low or zero emissions, how our buildings are heated, and, to some extent, how our buildings are heated.

However, neither an appliance nor a soft drink company can decide how we will dispose of their plastic bottles or whether we will use the most or least environmentally friendly settings on our washing machines.

Quantifying emission is a little easier for scopes 1 and 2. Businesses can acquire the data necessary to convert their direct gas and electricity purchases into a value for the associated greenhouse emissions for their energy use, for example.

For many firms, however, Scope 3 emissions account for a disproportionately large portion of total emissions. Unfortunately, these are typically the hardest to get rid of. One of the actions a company can take to do this is to collaborate with its present suppliers and their customers to find ways to reduce their emissions.

Wind Turbine – The Blades that Cut Emissions

Wind turbines are no water required equipment and can reduce the need for fossil fuels in electricity generation, resulting in lower CO2 emissions. Furthermore, well-placed wind turbines may generate a significant amount of electricity while also providing a good return on investment.

It is frequently stated that the energy and materials required for manufacturing, as well as the concrete required for the base during building, generate much too much CO2. However, wind turbines do not require large volumes of concrete. Instead, multiple comparisons reveal that wind energy is still far superior to fossil fuels in terms of CO2 emissions.

Wind energy does not require a separate "backup" generator. Service providers can program the system to predict when maintenance is required to maintain a smooth service flow. On a wind farm, backup is rarely required.

According to the International Journal of Sustainable Manufacturing, a wind turbine will recover the energy used in its manufacture and installation within five to eight months.

Offshore Wind Energy, a New Avenue for Energy Security in G20

A two-day G-20 summit was organized on the theme 'Materials for Sustainable Energy' in Ranchi where the Prime Minister of India Shri Narendra Modi addressed the global leaders about the topic of energy security and the way to achieve it via the use of renewable energy.

Energy security is one of the biggest concerns of the present time. Electricity is the lifeline of this world and the power grids are the first target by non-civilized elements. The case of Russia-Ukraine conflict is a real time example of how important is the energy security.

Member countries also reviewed the critical role of international financial systems to ensure low-cost funding for energy transition. The meeting also discussed technological gaps as well as the importance of protecting intellectual property rights in the context of technology transfer.

Member countries restated their commitment to energy transition and emphasized the necessity of collaborating with other global organisations such as the Clean Energy Ministerial (CEM), Mission Innovation (MI), and RD20 in order to achieve practical results. The emphasis was on the implementation of proven clean technologies like solar PV and offshore wind.

The Centre of Excellence for Offshore Wind and Renewable Energy presented "Fostering a thriving offshore wind sector," to boost offshore wind growth as well as the constraints and barriers that exist in this field.

The creation of the Centre of Excellence for Offshore Wind and Renewable Energy

India and Denmark are collaborating to establish the Centre of Excellence for Offshore Wind and Renewable Energy (CoE). This is a formalised collaborative project between the Indian Ministry of New and Renewable Energy (MNRE), which will host the CoE, and the Danish Energy Agency (DEA), which will provide support. The programme is being launched as a government-to-government initiative through the Indo-Danish Energy Partnership (INDEP). The CoE will play a critical role in enabling and speeding the implementation of India's offshore wind policy by bringing together industry, state agencies, and civil society.

Offshore Wind Energy is underexplored avenue for RE production in India

Offshore wind is a plentiful indigenous energy resource that has the potential to play a significant part in India's energy transition. It offers an efficient alternative to long-distance transmission or electrical generation growth in a land-constrained region. Many countries in Europe, the United States, China, and South Korea already have offshore wind capacity as part of their energy mix. According to the Global Wind Energy Council (GWEC), there were around 35 GW of offshore wind capacity installations by the end of 2020, with an additional capacity of 235 GW predicted by 2030.

India has a 7,600-kilometer-long coastline and a 2.3-million-square-kilometer exclusive economic zone (EEZ). The Government of India (GoI) has recognised the potential of offshore wind and set lofty goals of installing 30 GW by 2030. India presently has no operational offshore wind energy installations. Nonetheless, during the last few years, government agencies have been steadily laying the infrastructure to promote the development of the offshore wind sector.

In October 2015, a national offshore wind energy strategy was announced, and the Ministry of New and Renewable Energy (MNRE) was designated as the Nodal Ministry for the usage of offshore territories within India's EEZ. The National Institute of Wind Energy (NIWE) was designated as the nodal agency, and preliminary assessments of suitable sites off the shores of Gujarat and Tamil Nadu revealed a total capacity of 71 GW. Off the coast of Gujarat, the first offshore wind energy facility with a capacity of 1 GW is planned.

One of the primary reasons for the growth and appeal of offshore wind farms is that they provide the same or better benefits than land-based wind farms, particularly in terms of higher generation, while the distance from local populations eliminates concerns about disruption of scenery and noise pollution. They provide a domestic energy source, which improves energy security and creates jobs while emitting no pollutants or carbon gases.

In the current Indian context, offshore wind power projects can provide a few additional benefits in addition to the typical benefits of such plants. Offshore wind, for example, combined with desalination plants near the coast, provides a powerful synergy for addressing both energy and water shortages. The emphasis on offshore wind would also provide significant momentum to India's wind power equipment manufacturing sector. Once a sufficient pipeline of future projects is established, equipment makers will be able to develop their production lines accordingly, potentially catering to exports as well.

Way forward with Offshore Wind Energy in India

In India, there are considerable impediments to the adoption and spread of offshore wind. A complex development process including various agency clearances and licenses, supply chain bottlenecks, and huge logistics requirements for equipment transportation can all have an impact on project feasibility. The capital expenses of offshore wind projects are higher than those of onshore wind and solar, which may have an impact on their economic sustainability. The socio-environmental impact on marine life, fishing communities, shipping routes, and other economic activities for identified project sites must be examined, and mitigation measures must be implemented to ensure compliance with national and international standards.

To realise the promise of offshore wind, various technological, operational, environmental, and regulatory barriers must be overcome. At least for the earliest projects, offshore wind project costs and associated evacuation infrastructure expenses may not be competitive with solar and onshore wind tariffs. With its successful expertise in supporting and mainstreaming the adoption of new renewable technologies, the government can play a key role through a variety of measures such as establishing proof of concept, extending incentives and fiscal benefits, and so on. The key lessons learned from European experience, paired with international collaborations, would be tremendously beneficial in kicking off the process. Many technical challenges can be resolved by international cooperation.

Wind-Solar Energy Storage Market in India

Storage of Hybrid Solar Wind Energy market was worth USD 1.54 billion in 2021 and is expected to be worth USD 3.69 billion by 2030, increasing at a CAGR of 10.18% between 2023 and 2030.

Because of the increasing demand for dependable and consistent power supply, the Global Hybrid Solar Wind Energy Storage Market has grown rapidly. Furthermore, growing worries about inefficient grid infrastructure, as well as demand-supply mismatches in developing nations, are pushing market expansion.

The global hybrid solar wind energy storage industry is being pushed mostly by growing concerns about inadequate grid infrastructure and demand-supply mismatches in developing economies. Furthermore, the rising demand for clean energy, the implementation of smart grid networks, and the need to ensure the dependability and stability of RE systems have all contributed to the global acceptance of these systems. Furthermore, government activities towards the deployment of sustainable technologies, as well as substantial economic growth mostly in Asia Pacific and Africa, will drive the hybrid solar wind energy storage market expansion.

Furthermore, increased public and private financing for electrification in off-grid and remote places would have a significant impact on the hybrid solar wind energy storage market share.

Wind-Solar Energy Storage Outlook 2024

With a population of 1.4 billion people and strong economic development underway, India is expected to contribute 40% of the world's increased energy consumption by 2040, with renewable energy sources meeting the vast majority of this expanding demand.

Renewable energy's portion of the electricity mix has climbed from 15% in 2016 to 41% of total installed power plant capacity in 2022, with India aiming for 50% by 2030.

The next difficulty that India, like most other countries around the world, has is ensuring the power grid's stability and resilience in the face of a rising percentage of variable renewable generation sources.

The Indian government is in the early phases of developing the country's policy and regulatory framework for energy storage.

To deal with the predicted increase in supply and demand fluctuation, energy storage is viewed as a critical solution and is being progressively implemented by governments around the world, headed by China, the United States, and Europe.

Ensuring flexibility or the ability of electrical networks to balance changing supply and demand cost-efficiently across all timescales, is a greater problem for India than it is for most other countries leading the energy revolution.

The increase in supply and demand side unpredictability is predicted to result in a three-fold increase in flexibility demands for the Indian power system between 2020 and 2030, compared to a 40% increase in other markets such as the US, the EU, and China, according to the IEA's World Energy Outlook 2021.

Given the intermittent nature of solar and wind energy, as well as India's growing demand for 24-hour power, energy storage is a critical missing piece.

Energy storage is critical to realizing the full potential of renewable energy sources such as solar and wind. Making them base load is crucial to increasing the uptake of clean energy. Recent research from the Massachusetts Institute of Technology's Energy Initiative emphasizes the importance of energy storage technology in emerging markets and growing countries such as India. While most economies are developing and installing large-scale energy storage, India has only lately begun to deploy energy storage systems.

Wind and solar energy sources with substantial seasonal and daily variability are predicted to account for more than 80% of new capacity expansions in India's power sector until 2050. Due to the intermittent nature of wind and solar, high seasonal and daily variability in supply is prompting national and state strategies to firm up renewable supply, establish operational reserves, and improve system flexibility by creating energy storage.

In the short term, a policy is focused on operationalizing pumped storage projects (PSP) that are under construction or nearing completion to establish operational reserves.

On the other hand, the pipeline for battery energy storage systems (BESS) is being developed through competitive tenders, with implementation schedules ranging from 1 to 1.5 years. With more planned tenders for standalone and collocated projects requested by SECI and other state utilities including Gujarat, Maharashtra, Karnataka, Kerala, and Uttar Pradesh, battery storage projects are expected to expand.

PSP capacity is likely to dominate energy storage expansions in the immediate term, driven by improved economics, resource possibilities, and local capabilities. However, BESS expansions are predicted to outnumber PSP by 2030. The reduced capital required and competitive pricing in bids will encourage battery growth.

Framework for implementation of energy storage obligations

The new Ministry of Power guideline established a year-on-year energy storage obligation for distribution utilities, open access users, and captive power producers across the country, beginning with 1% in 2023-24 and increasing to 4% by 2030. This is a positive start toward establishing a clear market direction. More has to be done to ensure that this aim influences market expansion and is followed by obligated organizations.

• The Ministry of Power, in collaboration with the national electricity system operator, the Central Electricity Regulatory Commission (CERC), and the Forum of Regulators (FoR), should encourage state governments and state energy regulatory commissions to revise their renewable purchase obligations (RPOs) to include energy storage obligations over the central government's minimum required targets and aligned with the respective state's renewable power growth trajectory.
• Set up a stringent compliance framework with a mix of suitable incentives and punishments to encourage obliged organizations to follow through on their duties. To encourage early-stage adoption, the central government may, for example, offer a capital incentive to fund the first few energy storage installations by obligated organizations in the country. A penalty should be enforced firmly and should be linked to the level of achievement of the required aim.

Round the Clock (RTC) Renewable Energy

Round-the-clock (RTC) renewable energy, as the name implies, is a power supply that is accessible 24 hours a day, 365 days a year.

In the case of renewables, resource intermittency is a major drawback, limiting reliable RTC power supply from isolated solar and wind power facilities. Solar and wind power have unpredictable generating patterns and are heavily influenced by local weather conditions. Solar power, for example, may only be used during daylight hours and is impacted by cloud cover. Similarly, wind power, which is greatest in the morning and evening, would be impacted if the wind abruptly stopped blowing.

When renewable energy injection into the system was modest, this fluctuation was not a major concern. However, with 100+ GW of renewable power capacity already operational and at least 500 GW more planned by the end of this decade, the impact of variable renewable capacity on the grid must be considered. As the grid becomes greener with growing amounts of renewables, RTC power supply becomes increasingly important to ensure that the grid is balanced, energy demand and supply are effectively regulated, and intermittency issues do not impede power system efficiency.

In recent years, there has been a strong emphasis on hybridizing and mixing two or more energy sources to achieve better synergies, higher plant load factors, and higher energy gains.

Wind and solar electricity have complimentary generation patterns in India, and hence combining these two sources aid in creating a ne¬ar-smooth power production. Adding another energy source, such as hydro or biomass, or energy storage, strengthens and enhances the generation pattern. To maintain consistent output and utilisation of existing coal-based power facilities, thermal electricity is now being combined with renewables. RTC power supply goes above and beyond to ensure that quality clean power is supplied around the clock, utilising a combination of renewable and traditional energy sources.

RTC roadmap for Indian Energy Generation

Both the government and industry have been pushing heavily on creating hybrid projects and ultimately shifting towards RTC power supply arrangements. Several ministries have actively intervened to offer the required policy backing for various combinations of renewable hybrid projects. The government announced the National Wind-Solar Hybrid Policy in 2018, and it was followed by rules for the purchase of wind-solar hybrid power via tariff-based competitive bidding (TBCB) in 2020, as well as later changes.

To overcome the intermittent nature of renewables, the government suggested a scheme in early 2020 to sell renewable and thermal power as a "bundle" to buyers to offer a firm, uninterrupted electricity supply. While this did not guarantee RTC sustainable power, it was an encouraging step in the right direction.

The government issued standards for obtaining RTC power from grid-connected renewable energy projects supported by thermal power plants in July 2020. The criteria required that at least 51% of the power supplied come from renewable energy initiatives, which might include storage. Furthermore, power generators would be required to provide at least 85 percent availability both annually and during peak hours.

The government amended these requirements in November 2020, directing that RTC projects could be paired with any non-renewable energy source, whereas previously it could only be combined with thermal power. The modified requirements also stated that the bundle could only contain one non-renewable energy source and that it must have spare generation capacity to supply RTC power in the long run. The most recent revision to the RTC guidelines for procurement of RTC power from grid-connected renewable energy projects supplemented with power from any other form of storage specifies that the weighted average leveled tariff per unit supply of RTC power will be the bidding evaluation criterion.

RTC Project Financing in India

DBS Bank India is one of the lenders supporting the RTC project, offering syndicated project finance, FX hedging, and LC facilities.

To fulfil the country's 2030 goal, yearly wind and solar installations in India must more than quadruple. Banks such as DBS will be critical in making this happen until the end of the decade and beyond.

Pumped Hydro Storage in India

Pumped hydro storage is a type of energy storage that stores energy in the form of water. It is a type of hydroelectric energy storage in which power is stored in two reservoirs situated at various altitudes. Water is pumped from the lower reservoir to the upper reservoir when there is little demand for energy. When there is a strong demand for energy, water from the higher reservoir is discharged through turbines to produce electricity.

Renewable energy sources like solar and wind provide electricity only when the sun is out or the wind is blowing, hence they are intermittent. By holding onto excess energy when it's available and releasing it when it's needed, energy storage can help smooth out these swings.

How Pumped Hydro Works

Pumping water from the lower reservoir to the upper reservoir is done during the charging phase of pumped hydro storage. When there is little demand for electricity and energy is affordable and plentiful, this is often done.

Pumped hydro storage's discharge phase involves releasing water from the higher reservoir through turbines to produce energy. When there is a high electricity demand and there is a limited supply, this is often done.

Because it supplies the potential energy needed to produce electricity, gravity is essential to the operation of pumped hydro storage. The difference in elevation between the two reservoirs determines the quantity of potential energy that is available.

Efficiency is a crucial factor for pumped hydro storage since energy is lost during the charging and discharging processes. Pumped hydro storage has an efficiency range of 80–90%. However, evaporation and seepage could result in some potential energy losses.

Advantages

Large-scale energy storage using pumped hydro is a desirable alternative due to its many benefits. The capability of large-scale energy storage is one of its key benefits. Large amounts of energy can be stored for a very long time using pumped hydro.

Pumped hydro storage also can store energy for a long time. This makes it suitable for applications requiring daily or even weekly energy storage.

Additionally beneficial to flexibility and grid stability. It offers grid auxiliary services such as system inertia, frequency management, voltage regulation, storage and reserve power, quick mode changes, and black-start capability.

Pumped hydro storage is also compatible with existing infrastructure. It is possible to adapt many current hydropower stations with pumped hydro storage.

Pumped hydro storage also has a low carbon footprint and benefits the environment. It operates with no greenhouse gas emissions and does not influence the environment.

Challenges

While pumped hydro storage has many benefits, several obstacles, and restrictions must be taken into account.

The site-specific needs of pumped hydro storage are one of its key difficulties. Two reservoirs at different elevations are necessary for pumped hydro storage, although they can be hard to come by in some places.

The economic viability and cost implications of pumped hydro storage present another difficulty. Pumped hydro storage may not be as economically viable as other types of energy storage since it might be expensive to construct and maintain.

Additionally, pumped hydro storage may harm nearby ecosystems. New reservoir building may result in habitat loss and other negative environmental effects.

Finally, in some areas, the adoption of pumped hydro storage is limited. Pumped hydro storage necessitates special geological characteristics that are not found everywhere.

Case Studies

There are numerous pumped hydro storage projects in India. A good example is the 1.67 GW Srisailam Hydroelectric Power Station in Andhra Pradesh. Another example is the 815 MW Nagarjuna Sagar Dam in Telangana.

In India, pumped hydro storage has also been linked successfully with renewable energy sources.

Numerous advantages and lessons learned have been derived from existing installations. For more than 30 years, the Srisailam Hydroelectric Power Station has served as a grid stability service.

Conclusions

A future dominated by renewable energy is anticipated to place a significant emphasis on pumped hydro storage. The demand for energy storage will rise as more renewable energy sources are integrated into the system. Due to its large-scale energy storage capacity and long-duration energy storage characteristics, pumped hydro storage is a good choice for this function.

In the area of pumped hydro storage, technological innovation, and advancement are also anticipated to persist. For instance, pumped hydro storage can be more effective and adaptable because of variable speed technology.

Other energy storage technologies can be coupled with pumped hydro storage. For instance, pairing battery storage with pumped hydro storage can offer long- and short-term energy storage possibilities.

Small-scale applications and community-level storage are also possibilities.

What is ESG (Environmental, Social, and Governance)?
Why it is important?

In recent years, there has been a noticeable shift in the way businesses and investors approach sustainability and responsible practices. Environmental, Social, and Governance (ESG) factors have gained significant importance, shaping the decision-making processes of companies and investors alike. ESG represents a comprehensive framework that assesses a company's performance in areas such as environmental impact, social responsibility and corporate governance.

This article explores the growing significance of ESG and highlights as to why it has become a critical consideration in today's business landscape.

One of the primary reasons behind the rise of ESG is the mounting evidence that highlights the negative consequences of unsustainable practices. Climate change, resource depletion, and social inequalities are no longer distant concerns but pressing issues demanding immediate attention. Businesses that fail to address these challenges risk reputational damage, regulatory scrutiny, and financial instability. ESG provides a holistic approach to sustainability, enabling organizations to proactively manage their impact on the environment and society.

Environmental

From an environmental standpoint, ESG encourages companies to adopt practices that reduce their carbon footprint, promote renewable energy, and conserve natural resources. By integrating environmental considerations into their operations, companies can mitigate risks associated with climate change, such as disruptions in supply chains, regulatory penalties, and shifts in consumer preferences. Moreover, embracing sustainability measures can drive innovation, foster resilience, and unlock new business opportunities in emerging green markets.

Social

The social dimension of ESG recognizes that businesses have a responsibility to society beyond profit generation. Companies that prioritize social impact and inclusivity are more likely to attract and retain talent, build strong relationships with communities, and enhance their brand reputation. ESG pushes organizations to prioritize fair labour practices, diversity and inclusion, employee well-being, and community development. By engaging in philanthropic activities and contributing to the betterment of society, businesses can cultivate a positive corporate culture and strengthen stakeholder trust.

Governance

The governance aspect of ESG emphasizes the importance of transparent, accountable, and ethical business practices. Good governance structures ensure that companies operate with integrity, comply with regulations, and maintain effective risk management systems. ESG focuses on board independence, executive compensation, shareholder rights, and the prevention of corruption and fraud. By establishing robust governance frameworks, companies can reduce conflicts of interest, enhance decision-making processes, and protect the long-term interests of shareholders.Beyond the ethical imperative, the integration of ESG factors into investment decisions has gained considerable momentum. Investors recognize that sustainable practices are indicators of long-term financial performance and risk management. Numerous studies have demonstrated a positive correlation between strong ESG performance and superior financial returns. Companies that effectively manage ESG risks are more likely to identify emerging opportunities, build resilient business models, and attract investment capital. As a result, ESG considerations are increasingly becoming an integral part of investment strategies, with investors seeking to align their portfolios with their values and long-term financial goals.

How India is looking at ESG implementation.

India has been making changes to its ESG environment to be future-proof. In the Paris Agreement of the United Nations Climate Change Conference in 2021, India's Prime Minister promised to achieve net zero emissions by 2070. Corporate organizations must implement ESG principles to safeguard the environment, the interests of multiple stakeholders, and business sustainability in general.

The market regulator SEBI took a proactive approach to encourage business India to adopt an effective ESG policy system. The market regulator established new guidelines for ESG disclosures in 2020 for the nation's top 1,000 listed businesses by market valuation.

Organizations are expected to integrate ESG analytics into their sustainability interventions and align them with the industry's top ESG reporting standards to give investors and other stakeholders a complete picture of the organization's value creation.

How the world is implementing it.

Regulatory bodies and institutional investors are also playing a crucial role in driving the adoption of ESG practices. Governments worldwide are implementing stricter environmental regulations and reporting requirements, urging companies to incorporate sustainability into their core operations. Institutional investors, such as pension funds and asset managers, are exerting pressure on companies to disclose ESG metrics and demonstrate their commitment to responsible practices. These forces are creating a new normal in which ESG considerations are no longer optional but essential for businesses to remain competitive and attract capital.

Conclusion

ESG represents a paradigm shift in the way businesses operate and investors allocate capital. By considering environmental, social and governance factors, companies can mitigate risks, seize opportunities and contribute positively to society. The importance of ESG is underscored by the urgent need to address global challenges such as climate change and social inequalities. Moreover, integrating ESG into investment decisions allows investors to pursue financial returns while promoting sustainability and responsible practices.

Wind Energy Economy of India

Renewable energy importance is growing in India, which aims to produce 500 GW of non-fossil fuel-based electricity by 2030. Wind energy is one of India's most important renewable energy sources. The total installed capacity of Wind Energy in India is 42.868 GW (as of April 2023), according to the Ministry of New and Renewable Energy (MNRE). The country ranks fourth in the world in terms of wind power capacity. Wind power generation capacity in India has expanded dramatically in recent years, with a total installed wind power capacity of 42.633 GW as of 31 March 2023.

Wind energy is produced by wind turbines deployed in wind farms. Many of the largest onshore wind farms in operation are in the United States, India, Europe and China. Wind energy has several advantages, including low operating costs, no emissions, and no fuel costs.

Current Status Wind Energy in India

India had 42.868 GW of installed wind power capacity as of 30th April 2023, making it the world's fourth highest installed wind power capacity. Tamil Nadu, Gujarat, Maharashtra, Rajasthan, Andhra Pradesh, Telangana, Karnataka, Kerala and Madhya Pradesh are the major wind power producing states in India.

In the last five years, the Indian renewable energy sector has developed at a compound annual growth rate of 15.51%, with wind growth at around 8%. The indigenous wind power industry has consistently advanced India's wind energy sector. The wind industry's growth has resulted in a sustainable ecology, project operating capabilities, and a manufacturing base of approximately 15 GW per year.

Wind power accounts for 34.06% of total installed grid-connected Renewable Energy Power as of March 2023.

Government Initiatives and Polices

The Indian government has been making improvements to develop a safe, affordable, and long-term energy infrastructure to fuel robust economic growth. To stimulate the expansion of wind energy in India, the government has established a number of initiatives and policies. Among them are:

• The National Wind Energy Mission (NWEM) was created in 2014 with the goal of reaching 60 GW of wind power capacity by 2022.
• For the development of wind power projects, the Ministry of New and Renewable Energy (MNRE) offers capital subsidies, generation-based incentives (GBIs), accelerated depreciation, concessional credit, and fiscal incentives.
• The government has also implemented a Renewable Power Obligation (RPO) system, which requires obligated entities to acquire a set percentage of renewable energy.

The Indian government has implemented various regulatory measures and reforms to positively impact the wind energy sector. Some of them are:

• The government has introduced the concept of Renewable Energy Certificates (RECs) to promote renewable energy generation.
• The government has also introduced the concept of Green Energy Corridors to facilitate the transmission of renewable energy.
• The government has also allowed 100% foreign direct investment (FDI) in the renewable energy sector.

Technological Advancements and Innovations

India has made considerable progress in wind energy generation. As of March 2023, India's total installed wind power capacity was 42.633 GW, according to the Ministry of New and Renewable Energy (MNRE). Wind power has accomplished this through technological breakthroughs like as larger rotor diameters, taller towers, and more efficient blades.

India has also been experimenting on new wind energy systems or projects, such as the Hybrid Wind-Solar Projects. These projects aim to reduce the variability of renewable energy supply while also boosting grid stability.

Technology Modernization and Infusion of Efficient Equipment

India has progressed from sub-MW wind turbine generators (WTG) in the early 1980s and 1990s to an average of 2-2.1 MW onshore WTG installations in 2019, 2.25 MW in 2020 to 3 to MW in 2023. It has an increasing appetite for 3 MW plus WTGs those are already being deployed in the country, thanks to a strong pool of land-based wind resource sources. The timely achievement of India's 2030 target of 30 GW installed offshore wind energy capacity, which is expected to have a much higher capacity utilisation factor (CUF) than other non-hydro renewable energy sources, necessitates significant investments in turbine customization and local manufacturing.

Indian wind industry is poised to make significant technological advances in the coming years. India must build on its existing leadership in the wind supply chain and cement its position as a global manufacturing powerhouse for wind components and Wind Turbine Generators (WTGs).

Wind Energy Manufacturing Complements the Indian Growth Model

India's wind sector is currently providing several thousand jobs and has the potential to create several thousand more new and different types of jobs. This might very well help the Government of India's plans to advance the National Hydrogen Energy Mission, AtmaNirbhar Bharat, and Make in India projects, as well as Power to X initiatives, to name a few. However, in order to capitalise on these opportunities, states and the union government must support and incentivize the extension of current manufacturing facilities, the skilling of resource workers, and investment in new technology and infrastructure.

At the moment, there are a few components that do not have a single manufacturer in India. Therefore producers rely on imports from other nations, primarily China. Furthermore, there are a few components for which manufacturing becomes competitive and unsustainable if exports are not prioritised as the domestic market has been unappealing in recent years. As a result, a comprehensive plan that accelerates production capacity and encourages new industrial investments is critical for converting some of the obstacles into long-term and strategic possibilities.

In India, various research and development activities are underway to improve the performance and dependability of wind turbines. Through prototype, component, and utility-scale turbine research and development, the Ministry is collaborating with industry partners to improve the performance and dependability of next-generation wind technology.

MDPI conducted a review of wind turbine structural reliability study. The review outlines reliability methods, such as first- and second-order reliability methods, as well as simulation reliability methods, and demonstrates the approach for and application areas of structural reliability analysis of wind turbines.

The Economic Impact of Wind Energy in India

The rapid growth of wind energy in India has had a significant economic impact on the country. With a clear focus on renewable energy and a favorable policy environment, India has emerged as one of the largest wind energy markets globally. This growth has resulted in various positive economic outcomes.

Firstly, the wind energy sector has created a substantial number of jobs in India. From manufacturing and installation to operations and maintenance, the industry has generated employment opportunities across the value chain. Skilled and semi-skilled workers are finding employment in wind turbine manufacturing facilities, leading to income generation and improved livelihoods.

Moreover, the development of wind farms has attracted substantial investments, both domestic and foreign. Investments in wind energy projects have led to increased capital inflows, technology transfers, and partnerships between Indian and international companies. This influx of investment not only supports the growth of the sector but also stimulates the broader economy, including the manufacturing and services sectors.

Furthermore, the development of wind energy projects has brought about socio-economic benefits for local communities. In rural areas where wind farms are often located, landowners receive lease payments for hosting wind turbines on their land. This additional income has a positive impact on their economic well-being, contributing to rural development and reducing income disparities.

Additionally, the deployment of wind energy has helped India reduce its reliance on fossil fuel imports. By producing clean and sustainable energy domestically, India saves foreign exchange expenditure on importing coal, oil, and gas. This strengthens the country's energy security and reduces its vulnerability to international price fluctuations.

In conclusion, the wind energy sector in India has had a profound economic impact. It has created employment opportunities, attracted investments, stimulated economic growth, improved rural livelihoods, and enhanced energy security. As the country continues to expand its wind power capacity, the economic benefits are expected to grow, contributing to India's sustainable development and transition towards a greener economy.

Energy Banking and Energy Banking in India

Changing civilizations and modern capitalistic business structures resulted in the emergence of something known as Renewable Energy Banking. The notion is concerned with storing excess energy generated and withdrawing it when needed. It operates similarly to any other commercial bank. The concept was first established in the state of Tamil Nadu in 1986 and has subsequently been adopted by other states with excess energy production.

What is Energy Banking?

'Banking of Energy', as the name implies, is analogous to depositing money in a bank and retrieving it when needed. The entire idea is to save and store extra electricity created but not consumed. This excess energy can be stored in a 'bank' in the form of the units and subsequently used when the power output is insufficient.

In Tamil Nadu State Electricity Board v. Tamil Nadu Electricity Regulatory Commission & Ors., the Appellate Tribunal observed:

"Banking of energy is analogous to a small saving bank account in a financial bank. A person deposits his surplus amount in a savings bank account. He can withdraw his money from the bank at any time according to his requirements. For this deposited money, he earns some interest. The bank, in turn, gives loans to some other needy customers at a higher rate of interest. In this process, saving account holders as well as banks are benefited. Now come to electricity banking. Electricity is a commodity that cannot be stored. It is to be consumed at the very instant it is produced."

How did Energy Banking started in India?

India has made significant progress in the development of its legal structure. The laws are evolving in many directions, from insecticide usage and trade regulations to measures for large corporate mergers. The principal statute under the heading of 'Energy Laws' is The Electricity Act (2003). Energy Laws are rapidly evolving as a result of the innovations of current capitalist business models. For commercial clients, the quantity and simplicity of availability of energy (or electricity) have become one of the most important selling aspects of a particular region.

"Energy cannot be created or destroyed," but the demands and expansion of the modern world have led to what is often known as "Energy Banking." Energy banking is not a new practice; yet, it is not widely known. States such as Maharashtra, Gujarat, Tamil Nadu, and others that have an abundance of wind and solar energy to harness have already created renewable energy storage systems such as banks.

Tamil Nadu established electricity banking in 1986 (Apellate Tribunal for Electricity, 2021). This was primarily done to encourage captive and third-party open-access wind energy development in the state. Though there is no statutory definition of energy banking, the Appellate Tribunal for Electricity (APTEL) describes it as similar to a savings account in a financial institution. A customer deposits funds in a bank's savings account, which the bank then loans to other customers at a profit. The customer can withdraw money from the bank whenever it is convenient for him or her. Similarly, an open-access wind (or solar) project, whether a captive or third party, may create excess energy when the consumer load does not require it.

Instead, the generator can bank the energy with (or supply it to) the electrical distribution company (discom), which then distributes it to its customers at the applicable tariff. Unlike a savings account, where the user receives interest, energy banking requires the customer to pay 'banking charges' to withdraw energy from the discom.

The power providers and regulators in Tamil Nadu realized the importance of banking in enabling a wind project's commercial viability. This is because the amount of wind energy generated changes significantly throughout the day and from season to season, and does not correspond to the consumer's load profile.

This generates excess or surplus energy, which, if not consumed immediately, is lost, resulting in a revenue loss for the generator.

Karnataka to Allow Monthly Energy Banking for Renewable Projects

Under the new framework for banking agreements, the Karnataka Electricity Regulatory Commission (KERC) has now permitted monthly energy banking for renewable energy generators to enable greater grid stability and energy demand management. Previously, the state had a yearly energy banking settlement procedure. Under its green energy open access standards, the new structure now includes wheeling agreements for renewable energy projects.

• The company must supply a list of consumers and the quantity of electricity to be delivered to them, and any changes to this list must also be communicated 15 days in advance.
• Under WBA, the corporation must allocate all energy generated to its customers at the end of each month.
• Any residual energy will be billed to ESCOM following the appropriate pricing.
• The ESCOMs will collect open access charges from exclusive consumers while charging non-exclusive consumers.
• During system restrictions, power cuts or load shedding may be applied.
• Banking will be permitted monthly in exchange for payment of necessary fees, however unutilized banked energy left at the end of the month will not be carried forward to consecutive months.

forward to consecutive months. However, RE-generating stations would be entitled to RECs for any unutilized energy at the end of the month. There is also a formula for calculating banked energy at the end of the month. The ESCOMs reserve the right to withdraw banking and wheeling services under specific conditions and are not obligated to pay any compensation or damages.