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Green, Reliable and Viable
Green, Reliable and Viable
Perspectives on India’s shift towards
low-carbon energy

Editors
Ajay Mathur
Adair Turner
Noëmie Leprince-Ringuet
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2018 by The Energy and Resource Institute
CRC Press is an imprint of the Taylor & Francis Group, an informa business
No claim to original U.S. Government works
Printed on acid-free paper
International Standard Book Number-13: 978-0-367-27308-8 (Hardback)
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Table of Contents

Foreword
Ajay Mathur vii

Preface
Adair Turner xi

Acknowledgements xv

Energy Transitions in India: The Global Context

R R Rashmi 1

Shifting to Green Energy Systems

Managing India’s Renewables Target

Sumant Sinha 8
Roadmap for a Solar Surge
Ajay Shankar 13
Enhancing the Green Footprint of the Electricity Transition in India
Rakesh Nath and A K Saxena 18
Alternative Fuels for a Zero-Carbon Economy
Adair Turner 25

Making the Green Shift Reliable

Electricity System Flexibility in the Context of the Transition to a

High Share of Renewables in India
Thomas Spencer 31
Accelerating Reforms in Power Markets in India: Key Trends,
Challenges, Recommendations and Opportunities
Hemant Sahai and Rachika A Sahay 37
Decarbonise, Decentralise, Digitalise – The Future of Energy in India
Sunil Mathur 43
Financing Clean Energy: Enhancing Capital Availability and
Creating Supportive Frameworks for Renewables in India’s Energy Mix
Manoj Kohli 48

Making the Green Shift Viable

Bridging the Last Mile: Accelerating Access to Cooking Energy in India
Amit Kumar 54
Implications of Enhanced Energy Use in the
Agricultural Sector in India: Food, Water and Energy Nexus
Shripad Dharmadhikary, Sreekumar Nhalur,and Ashwini Dabadge 58
The Future of Mobility is Electric
Anirban Ghosh 64
Powering the Powerhouse: India’s Energy Efficiency Leap
Saurabh Kumar 69
Tackling the Hard-To-Abate Sectors in India’s Energy Transition
Nitin Prasad 75

About the Editors 80

About the Contributors 82
 By Ajay Mathur

In the 1920s, when electricity was being extended to all households of the
United States, one Tennessee farmer commented on this transformation, saying:
“The greatest thing on earth is to have the love of God in your heart, the next
greatest thing is to have electricity in your home”. Throughout history, the
provision of affordable and reliable electricity has been one of the keys to
transforming lives for the better.

It is unquestionable that India’s energy demand and consumption will continue

to rise in the decades to come. India is currently among the world’s fastest
growing emerging economies, and the world’s second most populous country.
Thus, rapid growth in energy consumption will occur to fuel industrialisation,
urbanisation, infrastructure development, and rising incomes. Such energy
demand growth is essential for development and to the goal of bringing modern
energy services to the millions of Indians still lacking them today. And this is
India’s prerogative: meaningful, reliable and affordable energy access for all.

India has taken remarkable strides in this regard in recent decades, with costs
of renewable energy (RE) falling precipitously, electricity shortages declining,
achieving electrification of every village in India in April 2018, and connectivity
nearing 100% of households. The regulatory structure in place is geared towards
making electricity affordable for all, with the Saubhagya Scheme for example,
providing last mile connectivity and free electricity connections to all rural
households and Below Poverty Line urban households. However, there is still
a long way to go. India’s per capita electricity consumption is just one-third
of the world average. Electricity generation is also the largest contributor to
India’s energy related carbon dioxide (CO2) emissions, and a major contributor
to local air pollution and other environmental problems.
Cognisant of this fact, and in a push to reconcile the conflicting imperatives of
development and environment, the Government of India has shown that it is
committed to enhancing the ‘greenness’ of its energy footprint. In fact, India
is deploying one of the world’s most ambitious RE programmes, targeting
175 GW RE installed capacity by 2022. When India announced this target in
2015, some judged it as unrealistic, because back then, the share of RE in the
total electricity generation was low. But solar installed capacity in India has
increased by about 9 times from 2.63 GW to 23.28 GW between March 2014
and August 2018. The National Electricity Plan of India 2018 now foresees 275
GW RE by 2027.
This makes India a key country for global energy transitions. By implementing
its RE targets successfully, India can act as a pioneer in leapfrogging to a new
paradigm of development and industrialisation. Given its scale, circumstances,
rapid growth and commitment to sustainable development, India’s energy
transitions present tremendous opportunities, but of course, this comes with
its set of challenges.
This is a learning process for India. The first phase of our energy policy focused
on creating the conditions to bring affordable and reliable energy to all, and
this has been achieved spectacularly. With these strong foundations in place,
we must now look to the next phase of our energy policy as future-looking,
aiming to balance conventional and alternate sources of energy along with
energy efficiency, going beyond the energy access objective and pursuing the
goal of energy independence. This will only be possible with a much higher
share of RE in our energy mix, and this transition must be carefully planned
and prepared for, starting now.
For this to happen, we must understand that this is not one transition, but
many transitions happening and coming together. A plethora of key actions,
policies and finance mechanisms, changing institutions, markets, business
models, infrastructure and behaviours, can make it feasible for India to meet
its rapidly rising energy demand with an increasing share of RE, high standards
for affordability and reliability, and minimal disruption in all the involved
sectors.
This is not to say that coal will not remain the dominant energy supplier over
the course of the next decade; but India needs a strategy going beyond the 2022
short-term milestone, which is not an end in itself. This should be a stepping
stone towards a longer-term, affordable and reliable energy system that does
not look anything like today’s. Unleashing the full potential of transitions
will require significant structural and institutional changes, regulatory support
and interventions, long-term policies and a critical mass of key stakeholders
supporting this orientation.
This book of thought-leadership exemplifies the support that is required for
these transitions to occur. As shows this book, energy transitions concern
every sector, and all stakeholders, from industry, to finance to government.
Stakeholders must work together to bring to the table the cooperation
that forms the core of the integrated approach that will drive these energy
transitions. I much welcome the foundation laid by this book, on which I hope
we can build momentum, to lay out the transformational paths of change that
our country needs to embark on.
Dr Ajay Mathur is Director General of The Energy and Resources Institute

Bibliography
Gordan, J., R., (2016). The Rise and Fall of American Growth: The U.S. Standard of Living Since the Civil
War. Princeton, New Jersey: Princeton University Press.
 By Adair Turner

I have often said that the resource-intensive practices of yesterday can no

longer sustain the world. The future of our planet hinges on timely transitions
to resource-use efficiency across ecosystems of people, products, and processes.
Aligned with this thought, the India spin-off of the Energy Transitions
Commission (ETC India) was launched in February 2018 to spearhead the
nation’s transition to low-carbon energy systems. As we reach the first
anniversary of ETC India, it is time to pause and assess the challenges,
learnings, and the way ahead.
India, which is undertaking the world’s largest household electrification
programme, is faced with the dual challenge of achieving universal access to
reliable power while reducing its reliance on fossil fuels. Moreover, the country
has committed, under its Nationally Determined Contributions, to reduce
the emissions intensity of its gross domestic product by 33% to 35% by 2030
from 2005 levels, and to ensure at least 40% non-fossil fuel-based electricity
generation capacity by 2030. This is a noteworthy resolve for a nation that is
investing heavily in energy systems, mobility, industrialisation, infrastructure,
housing, and urban facilities amongst others.
I firmly believe that the road to achieving these goals goes through a low-carbon
economy. The importance of this transition becomes even more pronounced
when analysed in the Indian context. The country is making giant strides in
transforming its energy mix with significant additions in renewable energy
capacity, enabling policies in its grid integration, and large-scale measures in the
field of energy efficiency. While these targets are noteworthy in themselves, it is
equally important to evaluate them against India’s changing energy landscape
and ever-increasing demand for energy. The big picture, therefore, highlights
the imminent need to accelerate the transition to low-carbon energy systems.
This book includes valued perspectives from key stakeholders in this transition.
Experts and practitioners from the power, mobility, agriculture and energy
efficiency sectors, amongst others, have shared their outlook on how to accelerate
the ongoing shifts to green energy systems; on the next steps required to make
those green shifts reliable; and further, to make them viable for end-use sectors
and consumers. They have provided their perspectives on the policy, corporate
and financial aspects that will enable these transitions. The overarching
message reaffirms that the Indian energy sector of the future will be noticeably
different from its current version. However, to enable this transformation, there
is a need for new technology, business models and policies that are specifically
tailored to the Indian context. There is also a need for regulatory frameworks
to deal with institutions and infrastructure that will be supplanted.
For instance, stakeholders argue for digitalisation of the electricity grid, to
drive cost-efficiency while leveraging automation of end-to-end processes in
power plants (from coal yard management to ash utilisation). Or an entire
off-shore platform to be managed remotely, efficiently and with fewer people.
Despite being a path-breaking transition in ways more than one, such a step
would need to be supplemented with adequate frameworks dealing with the
eliminated processes, resources and structures.
Another enabler of low-carbon energy transition is energy storage technology,
which has been emphasised in this book as a necessity to ensure flexibility of
the electricity system. In the chapter on energy flexibility, the author argues
that energy storage (along with Demand Reduction Measures and utilisation
of existing thermal plant capacity) is a prerequisite for India’s transition to
renewables. It reduces the need for expensive backup capacities, by storing part
of the solar output during the day and releasing it back to the power system in
the evening. Developing a timely and integrated approach to enable solutions
such as energy storage, interconnected grid, along with demand-side measures,
effective markets and cooperation between state and central authorities are
crucial for India. Similarly, blockchain technology is projected to play an
important role in connecting energy consumers (even in remote off-grid rural
areas) to investors, producers, and grid operators.
In the chapter on mobility, the author argues that the future of mobility in
India needs to be shared, convenient, connected, reliable and electric. With
a growing demand for mobility in India, the potential for scaled adoption of
electric vehicles across different customer segments, including passenger as
well as freight movement is significant. This, again, builds a strong case for
transition to clean and low-carbon transport systems – the dividends of which
will not only provide an impetus to climate action but also improve mobility
standards and savings for end-consumers.
In the chapter on energy efficiency, the author advocates future-oriented
technologies such as trigeneration, electric mobility and smart meters while
calling them the ‘starting point’ for energy transitions. According to him, far-
reaching results will be generated through business models that are tailor-made
for the Indian context. Similarly, the chapter on Managing India’s Renewables
Target lists down five key steps that India must take to enable this transition.
Hybridisation of solar and wind energy, development of robust ancillary markets
to support the grid infrastructure, and increased investments in high-voltage
transmission lines are the top three.
Further, software solutions to optimise grid-level operations as well as consumer-
level behaviour, and battery storage have been advocated as the next key steps.
As the cost of battery storage falls, it will become increasingly viable to manage
intermittency in the grid integration of renewable energy. Aligned with the
thought of investing in future-oriented technology, the chapter on Enhancing
the Green Footprint of the Electricity Transition in India, states that in the
short-term, the country needs to consider technological interventions which
also reduce air pollution and water-usage in the power sector. However, these
need to be woven into the long-term strategy for a cleaner power system based
on renewables.
Coming to the agriculture sector – the backbone of the Indian economy –
experts believe that innovative approaches building towards a more sustainable
and equitable scenario will enable the low-carbon transition. Comprehensive
efforts that facilitate lower water-intensive cropping patterns and extensive
soil-water conservation coupled with rainwater harvesting schemes are critical
to reduce the energy consumption in agriculture. Decentralised renewable
energy solutions for agricultural pumping requirements will prove to be a
game changer in this transition. Strong interlinkages between food, water, and
energy, therefore, need to be recognised and analysed in an integrated manner
to ensure a smooth and swift transition to low-carbon systems.
We know that the fight against climate change is an uphill task, but it is not
an impossible one. The global community also recognises that the developing
world’s energy demand and consumption will rise during its journey so as to
enable a quality of life that is at par with the developed world. Nonetheless,
it is still possible to achieve these goals while containing our carbon footprint.
The answer lies in transitioning to a low-carbon global energy system.
According to ETC’s Better Energy, Greater Prosperity report released in
April 2017, it is technically and economically feasible to grow economies and
provide affordable, reliable, and clean energy for all while meeting the Paris
objective of limiting global warming to well below 2°C. The key is to accelerate
energy productivity and decarbonisation of the electricity sector, move towards
increased electrification in homes, mobility and industry, and start introducing
zero-carbon technologies in the so-called ‘harder-to-abate’ sectors, such as
cement and steel, and trucking and aviation.
With multiple steps in the right direction, India has set the wheel in motion. It
is now imperative that we add to this momentum. After all, the future of our
planet hinges on the sustenance of this movement.
Lord Adair Turner is Chair of the Energy Transitions Commission

Bibliography
The Energy Transitions Commission (2017). Better Energy, Greater Prosperity: Achievable pathways to low-
carbon energy systems. Retrieved from http://energy-transitions.org/sites/default/files/BetterEnergy_fullRe-
port_DIGITAL.PDF
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