5. RENEWABLE ENERGY
Figure 5.6 Role of solar parks in utility-scale solar PV project development
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Share of project capacity |
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MW |
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100% |
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awarded |
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3000 |
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Solar park projects |
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(left-side axis) |
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80% |
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2400 |
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Non-solar park projects |
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(left-side axis) |
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60% |
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1800 |
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Nameplate Capacity of Solar |
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Park Projects Awarded |
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40% |
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1200 |
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(right-side axis) |
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20% |
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600 |
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0% |
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0 |
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IEA 2019. |
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2014 |
2015 |
2016 |
2017 |
2018 |
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All rights reserved. |
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Solar parks are playing a larger role in sanctioned utility-scale solar PV projects, but their potential is not fully exploited, in part due to their relatively high prices and government land acquisition challenges.
Note: Solar parks are defined as those sanctioned under the MNRE’s Solar Park Scheme. Projects with multiple phases are treated as single projects when awarded in the same year and sharing a common developer.
Source: IEA (2018b), World Energy Investment 2018.
Transport
India has a long standing ethanol blending programme. Today around 2 billion litres of ethanol are consumed across India and in several union territories, where the programme has been implemented by the oil marketing companies (OMCs).
The mandated level of 5% ethanol blending has not been met to date, although 2017/18 saw a record high blending rate of over 4% achieved. Consumption has fallen well short of more ambitious 10% blending targets for ethanol-producing states, and aspirational 20% blending goals. In the past there was no formal national mandate for biodiesel blending, but several more localised 5% blending initiatives have been undertaken. Fuel distribution is largely in the hands of public-sector national OMCs. India's biodiesel production is still at an early stage of development, allowing blends of up to 5%. There are around 3 400 outlets in seven states that offer B5 diesel.
In 2018 the MoPNG introduced a new biofuels policy covering both conventional and advanced biofuels (MoPNG, 2018).1 This superseded the previous biofuels policy of 2008. The new policy proposes an indicative target of 20% ethanol blending in gasoline and 5% biodiesel blending in diesel by 2030 among other key pillars, as shown in Figure 5.7. The new national biofuels policy widens the range of feedstocks allowed to be used as a base for ethanol – expanding from only the molasses produced by India’s large sugar industry, to include sugar cane juice, sugar and starch crops (e.g. corn and cassava) in years when there is a projected oversupply, and damaged food grains. This is anticipated to support production growth. The new policy links ethanol and sugar cane pricing, and establishes differential prices for ethanol depending on production feedstock. Public-sector financial support for greenfield and brownfield investments to increase ethanol production capacity has also been introduced.
1 The IEA considers advanced biofuels as sustainable fuels produced from non-food crop feedstocks, which are capable of significantly reducing lifecycle GHG emissions compared with fossil fuel alternatives, and which do not directly compete with food and feed crops for agricultural land or cause adverse sustainability impacts.
118
IEA. All rights reserved.
5. RENEWABLE ENERGY
Figure 5.7 National biofuels policy, 2018
IEA 2019. All rights reserved.
Notes: 1G = first generation; 2G = second generation; 3G = third generation.
The new biofuels policy outlines several measures to support advanced biofuel production, including additional tax incentives, a higher purchase price than for conventional biofuels and investment support. Advanced biofuels will benefit from more favourable administratively set purchase prices. India’s ethanol production, which is by far the principal biofuel used, offers greenhouse gas emission reductions. It is produced from molasses residue feedstocks, a by-product from the sugar industry.
The feedstock extension in the new biofuels policy takes account of food production, for example only allowing damaged grains. No sustainability concerns arise from this biofuels policy, except for water demand in some areas. India is at the forefront of developing an advanced biofuel industry and in 2018 accounted for around one-fifth of announced and under-development novel advanced biofuels projects globally, according to the IEA (2018b). OMCs are now developing 2G ethanol and plan to invest in 12 bio-refineries in 11 states with a total investment volume of USD 120 million. The GoI aims to provide incentives for farmers to bring their waste to the refineries.
Industry
The National Biogas and Manure Management Programme set a target for 65 and 180 biogas plants in 2017/18. A programme to promote off-grid and decentralised concentrated solar thermal (CST) technologies for community cooking, process heat and space heating and cooling applications in industrial, institutional and commercial establishments was extended in February 2018 to run until 2020.
At the end of 2018 around 300 MW of EfW capacity had been installed, and the country’s largest plant (24 MW) was commissioned in New Delhi in 2017. The GoI promotes the use of urban, industrial and agricultural waste and residues with a programme providing financial assistance in the form of capital subsidy and grants, with a target of 57 MW equivalent capacity for the period 2017/18 to 2019/20.
The MNRE has partnered with the United Nations Development Programme to promote clean energy use for small businesses and industries under the Access to Clean Energy for Rural Productive Uses programme. It aims to enhance the use of reliable and affordable renewable energy for rural productive uses, providing livelihoods in areas in the states of Assam, Madhya Pradesh and Odisha. India is also providing capital grants for solar
119
ENERGY SYSTEM TRANSFORMATION
IEA. All rights reserved.