India’s energy sector has witnessed advancements in 2024, particularly through the Surya Ghar Bijli Yojana. This initiative has successfully installed over 6.3 lakh units in just nine months. Anujesh Dwivedi from Deloitte India marks these achievements in the State of Economy Podcast, showcasing the remarkable growth in renewable energy and power demand.
Record Peak Power Demand
Recently, India recorded a peak power demand of 250 gigawatts (GW). This figure marks milestone in the country’s energy consumption, reflecting the growing needs of its population and economy. The increase in demand puts stress on the necessity for sustainable energy sources and efficient distribution networks.
Renewable Energy Capacity Expansion
India added 30 gigawatts of new renewable energy generation capacity in 2024. This expansion is crucial for achieving the ambitious target of 500 GW of non-fossil fuel-based power by 2030. The focus on renewable sources is essential for reducing carbon emissions and enhancing energy security.
Surya Ghar Muft Bijli Yojana
The Surya Ghar Muft Bijli Yojana aims to provide free electricity to households across India. This initiative is designed to enhance energy access for low-income families. The scheme demonstrates the government’s commitment to improving living standards and promoting social equity.
Challenges for Power Distribution Companies
Despite the successes, power distribution companies face financial viability issues. These challenges hinder their ability to invest in infrastructure and maintain service quality. Addressing these concerns is vital for the long-term sustainability of the energy sector.
Underutilisation of Gas-Based Plants
Gas-based power plants remain underutilised, which limits their potential contribution to the energy mix. Enhancing the efficiency and utilisation of these plants is necessary for diversifying energy sources and ensuring grid stability.
Need for Robust Transmission Networks
The growth of renewable energy, particularly from intermittent sources, necessitates improved transmission infrastructure. A robust grid is essential for managing supply and demand effectively. Investment in transmission networks will support the integration of renewable energy into the national grid.
Future Trends and Events
Looking ahead to 2025, several key trends are emerging. The government aims to ramp up domestic manufacturing under the Production-Linked Incentive (PLI) initiative for solar energy. Increased private sector participation in power distribution is also anticipated, which could enhance efficiency and service delivery.
Conclusion on Energy Transition
India’s energy transition is a dynamic and evolving process. The success of initiatives like the Surya Ghar Bijli Yojana and the focus on renewable energy are very important in shaping the future of the sector. The government’s proactive measures to address challenges will be crucial for achieving energy sustainability.
Questions for UPSC:
- Critically analyse the impact of renewable energy expansion on India’s energy security.
- Estimate the challenges faced by power distribution companies in India and suggest potential solutions.
- Point out the significance of the Production-Linked Incentive initiative for solar energy in India.
- What is the role of grid stability in integrating renewable energy sources? Discuss with examples.
Answer Hints:
1. Critically analyse the impact of renewable energy expansion on India’s energy security.
- Renewable energy reduces dependence on fossil fuels, enhancing energy security.
- Increased capacity diversifies energy sources, making the grid more resilient.
- It helps mitigate the risks associated with fuel price volatility.
- Supports sustainable development goals by reducing carbon emissions.
- Encourages local manufacturing and job creation in the renewable sector.
2. Estimate the challenges faced by power distribution companies in India and suggest potential solutions.
- Financial viability issues due to high operational costs and low tariffs.
- Inadequate infrastructure leading to power losses and service interruptions.
- Need for reforms to improve efficiency and accountability in operations.
- Investment in smart grids and technology to enhance service delivery.
- Government subsidies and support for transitioning to sustainable practices.
3. Point out the significance of the Production-Linked Incentive initiative for solar energy in India.
- Promotes domestic manufacturing of solar components, reducing import dependence.
- Boosts job creation and skill development in the renewable sector.
- Encourages innovation and technological advancements in solar energy.
- Supports the goal of achieving 500 GW of non-fossil fuel capacity by 2030.
- Enhances competitiveness in the global solar market for Indian manufacturers.
4. What is the role of grid stability in integrating renewable energy sources? Discuss with examples.
- Grid stability ensures reliable power supply despite the variability of renewable sources.
- Enhanced transmission networks are crucial for balancing supply and demand.
- Examples include energy storage systems that help manage peak loads.
- Smart grid technologies facilitate real-time monitoring and control of energy flow.
- Successful integration of renewables, like rooftop solar, requires robust grid infrastructure.
