Energy security needs diversification

Financial Express, September 24, 2024 

By VP Singh & Pradeep S Mehta

Scale and speed of energy diversification, coupled with capacity expansion and growth of transmission networks, are pivotal to meet electricity demand.

India must adopt an inclusive approach to meet rising power demands and ensure energy security, integrating a diverse range of sustainable energy sources beyond solar and wind. Nuclear energy should play a central role in this strategy, supported by hydroelectric power, alternative energy sources, and storage solutions. Besides, expanding transmission networks will be essential to effectively absorb and distribute the increased capacity.

Renewable energy (RE) in India currently accounts for 44% of the total installed capacity but contributes only 23% to energy generation, with the majority of it coming from thermal sources. Although India is on track to achieve its target of 50% installed capacity from renewables well before 2030, the share of RE in the overall energy mix demands closer attention. While battery storage solutions could address this issue to an extent, their current pace of progress is insufficient and scalability remains an operational concern.

With power demand expected to double by the end of this decade (2020-2030), simply increasing coal-fired power generation or expanding solar and wind capacity will not provide a sustainable path to energy security. India must diversify its energy portfolio to simultaneously meet its capacity and sustainability goals.

Nuclear, for example, can support India’s energy transition in the most effective manner. The current nuclear capacity is a mere 8 gigawatt (Gw) — less than 2% of the total installed capacity. However, the government plans to add 14.3 Gw by 2032. While this is commendable, it pales in comparison to the projected total capacity addition of approximately 338 Gw during the same period, including 80 Gw from coal alone. This disparity suggests that the potential of nuclear energy may be underutilised in India’s broader energy strategy.

Nuclear is both clean and efficient, and India has abundant nuclear fuel with the largest thorium reserves, accounting for 25% of the world’s deposits. The advent of small modular reactor technology, which enables reactors to be manufactured in factories and then transported to operational sites, further enhances the operational flexibility of nuclear plants.

To truly advance toward sustainable and resilient energy system, India must develop a robust domestic ecosystem for nuclear energy. This is especially critical as RE equipment like wind turbines and solar panels remain susceptible to fluctuations in global supply chains, despite the growth of local manufacturing, and coal remains incompatible with India’s net-zero goal.

The government’s decision to invite private investment in nuclear energy projects is a positive and much-needed step. However, to fully leverage India’s abundant thorium reserves — given that thorium is fertile rather than fissile — additional research and development is crucial.

Several countries including the US, UK, and China are doing to research on thorium-based technologies like liquid fluoride thorium reactor and molten salt reactor. The research is essential to unlock the potential of thorium as a viable and sustainable energy source for the future.

Hydroelectric power is another crucial sector for India to ensure stable, long-term energy supply, particularly through cross-border trade with Nepal and Bhutan. Both countries possess vast, untapped hydroelectric potential, and require investments — including power evacuation and transmission infrastructure — to harness this.

New deals have been struck with Nepal to supply hydel power to India, while Bhutan is supplying power for long. Developing robust transmission lines from Bhutan and Nepal to India would not only enhance energy networks but also promote trade within the region. Such an approach promises a mutually beneficial outcome, fostering regional cooperation, and contributing to shared prosperity.
The Indian government aims to increase the current hydro power capacity from 42 Gw to 67 Gw by 2032, with an aggregate capacity of 15 Gw under construction. Since the power projects in the northern and eastern parts of the country account for about 60% of our hydroelectric generation, it would be prudent to develop stronger infrastructural ties with Nepal and Bhutan to realise these goals. The role of pumped hydro storage will also be crucial in addressing the challenges arising from the infirm nature of solar and wind resources.

The current solar energy landscape could also be significantly enhanced by adopting a resource optimisation approach that tailors strategies to each region’s generation potential. For instance, arid Ladakh, with its high insolation and clear skies, is more suited for solar power generation than traditional hubs like Rajasthan or Gujarat.

A prime example of this inclusive approach is the Power Grid Corporation of India’s 13-Gw green energy corridor project in Ladakh, which will feed electricity into the national grid via inter-state transmission lines. More projects like this should be prioritised over assigning unrealistic targets to states that lack the capacity to execute such initiatives, ensuring a more effective path to energy sustainability and security.

Additionally, alternative energy generation methods such as distributed RE, waste-to-energy, and biomass can play a crucial role in bridging structural gaps in developing a resilient energy ecosystem. These approaches will not only contribute to a cleaner energy mix but also create entrepreneurial opportunities for millions of Indian citizens, fostering local economic growth.
In conclusion, the scale and speed of energy diversification, coupled with capacity expansion and the enhancement of transmission networks, will be pivotal in ensuring that India’s power sector can sustainably meet electricity demand.

With contributions from Akash Sharma, CUTS International

VP Singh & Pradeep S Mehta, Respectively former governor of Punjab, and secretary general of CUTS International.

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