India should focus on right diversified energy mix laying focus on fossil fuels in view of recent crisis in Europe due to high natural gas prices and slower wind speed for turbines to generate power, according to the Economic Survey.
The energy crisis being experienced by Europe brings to the fore the need for having a diversified mix of sources of energy of which fossil fuels are an important part.
India should focus on right diversified energy mix laying focus on fossil fuels in view of recent crisis in Europe due to high natural gas prices and slower wind speed for turbines to generate power, according to the Economic Survey.
The recent surge in prices of natural gas in Europe on account of higher energy demand coupled with cold spells across the region and slower winds to run wind turbines has resulted in lower electricity output, noted the Survey 2021-22 tabled in Parliament on Monday.
It suggested that the energy crisis being experienced by Europe brings to the fore the need for having a diversified mix of sources of energy of which fossil fuels are an important part.
Simultaneously, it also suggested that the focus should be laid on building storage for intermittent electricity generation from solar PV and wind farms to ensure on-demand energy supply.
The two main pillars for mitigation action to achieve net-zero carbon ambition are transition to clean and renewable sources of energy and storage of this energy, it noted.
The World bank in its report 'Minerals for Climate Action' has in its report mentioned that this transition from conventional fossil fuel-based energy to clean energy as well as battery storage will be more mineral intensive, it also noted.
Minerals and metals like copper, aluminum, iron, manganese, nickel etc are critical for developing clean energy sources like solar PV, wind, nuclear while minerals like lithium and graphite are important for energy storage.
Therefore, it is suggested that on the policy front, it is pertinent to prepare for this (mineral requirement).
In this regard, it is essential that pace at which shift from conventional fossil-fuel based sources is made. The pace will determine the extent and mix of investment in renewable sources of energy, it pointed out.
With the developed countries as frontrunners of net-zero emission plans, it is important to avoid the risk of being a late comer. The inelastic supply of minerals is already in increasing the prices of minerals which is likely to shoot up even further in the future, it opined.
It also suggested to encourage R&D (research & development) to ensure effortless switch to renewable sources of energy.
This may also include focus on developing technology that recycles, reuses and repurposes minerals, it added.
The survey has also stated that the climate finance will remain critical to successful climate action for India to achieve its net zero carbon emission target by 2070.
India has set an ambitious target of having 175 GW of renewable energy by 2022.
Earlier in December 2021, Union Power and Renewable Energy Minister R K Singh had pegged investment in clean energy at USD 15 billion during 2022.
India has also revised its target of renewable energy from 450 GW to 500 GW by 2030. Thus the funding assumes significance in coming says.
According to the Central Electricity Authority, as on December 31, 2021, the share of non-fossil sources in installed capacity of electricity generation was 40.20 per cent.
The total installed power capacity and captive power plant (industries having demand of 1MW and above) was 459.15 GW on December 31, 2021 as compared to 446.35 GW on December 31, 2020 registering a growth of 2.87 per cent.