WHAT ARE SOME OF THE CHALLENGES INDIA FACES IN ACHIEVING ITS RENEWABLE ENERGY GOALS?

India faces several challenges in achieving its ambitious renewable energy goals to install 450 GW of renewable capacity by 2030. Some of the key challenges are:

Grid integration challenges: India’s power grid still relies heavily on coal-fired thermal power plants. Integrating large quantities of variable renewable energy such as solar and wind into the grid presents technical challenges. Renewable energy is intermittent in nature while the demand for electricity is continuous. Better forecasting systems, energy storage solutions, and demand response mechanisms need to be implemented to balance generation and demand. This requires significant investments in upgrading the national and regional grid infrastructure.

Land acquisition issues: Setting up large-scale solar and wind power projects requires vast swathes of land. Land acquisition has proven to be difficult in India due to various factors like resistance from local populations, land disputes, and high land prices. Finding suitable tracts of unused land for renewable energy projects continues to be a challenge. This delays project commissioning.

Financing issues: Setting up renewable energy infrastructure requires massive investments running into billions of dollars. While costs of renewable technologies are continuously declining, financing large projects remains difficult due to perception of high risk amongst investors and financial institutions. Limited avenues for project financing and lack of low-cost long-term debt financing are major roadblocks. The government needs to introduce innovative financial mechanisms like green bonds and investee it further in renewable energy.

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Intermittency issues: The intermittent and variable nature of solar and wind power poses challenges for grid integration and round-the-clock reliable power supply which is crucial. Seasonal and daily variations in solar irradiation and wind speed affect power generation quality and quantity at different locations. More reliable renewable sources like biomass and geothermal also need to be promoted along with optimal hybrid solutions.

Transmission infrastructure gaps: India’s existing transmission infrastructure is not robust enough to handle the targeted renewable energy scale up. Evacuating large amounts of renewable power from resource-rich regions to major load centers requires reinforcing the transmission network through building more transmission lines, substations, transformers etc. But inter-state transmission projects have been lagging in India.

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Policy and regulatory challenges: Frequent changes in renewable energy policies and lack of coordination between state and central agencies create uncertainty for investors. Issues like long-term power purchase agreements (PPAs), land allocation policies, open access regulations and a clear roadmap for renewable purchase obligations need stable policies. Regulatory reforms are also required to modernize India’s electricity markets to better integrate renewables.

Storage challenges: The lack of cost-effective energy storage options at scale restricts India’s ability to manage peak shifts in solar and wind power output. Pumped hydro offers some storage but pumped storage potential in India is limited. Battery storage costs need to reduce significantly for viable large-scale integration of renewables. Research is also required in innovative storage technologies like thermal and green hydrogen.

Skilled manpower shortage: Harnessing renewable energy on a massive scale requires skilled personnel for areas like project development, installation & commissioning, operation and maintenance of solar parks, wind farms etc. India faces significant shortage of such trained manpower which delays renewable expansion. More training institutes and skill development programs are required.

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Supply chain issues: India is heavily reliant on imports for critical components like solar panels, wind turbines, batteries etc due to lack of domestic manufacturing scale. This increases project costs and financial risks. Localizing the renewable manufacturing supply chain through production-linked incentives can help India overcome this challenge in the long-run. It will take time for local supply chains to be built completely.

These are some of the major challenges that India faces in meeting its target of installing 450 GW of renewable energy capacity by 2030 from current levels of about 115GW. Timely resolution of the land, financing, grid integration and policy related roadblocks will be crucial for the country to achieve this ambitious clean energy scaling up which is needed to meet its climate change commitments and energy demands sustainably.

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