The global community is no longer at a stage where we can expect a soft landing on climate change, says Pratyush Thakur, Country Head (India) at Blueleaf Energy. Instead, we are heading towards a bumpy ride, and this means efforts in both mitigation and adaptation need to intensify significantly. Thakur emphasizes that one of his primary expectations from COP 29 is that global leaders demonstrate a genuine commitment to increase financial support for climate action.
The existing target of $100 billion set by developed countries to help mitigate climate change in developing countries has not been met and is far from sufficient. Experts, including those from the United Nations, estimate that approximately $1.5 trillion per year is required to reach net-zero emissions. This is a significant gap from the current levels of funding, and it is crucial for leaders to take concrete steps to address this financial shortfall. Thakur further stresses that phasing out coal and shifting to cleaner energy sources must be prioritised to mitigate the climate crisis.
India’s Renewable Energy Targets for 2030
India has demonstrated strong leadership in climate adaptation and mitigation. The country has set ambitious goals, such as generating 50% of its electricity from non-fossil fuel sources by 2030. However, this target focuses on installed capacity, not actual energy generation. Thakur points out that even if India achieves its target of 500 GW of renewable energy capacity, it will still only account for 25-30% of total electricity generation, with the remaining 70-75% coming from fossil fuels. While India’s renewable energy efforts, such as reaching 200 GW of renewable capacity, are commendable, much more needs to be done to reach the 500 GW target by 2030.
The development of transmission infrastructure is essential to meet this goal. Thakur notes that private companies, along with PowerGrid, have made significant progress in building high-tension transmission lines to integrate renewable energy into the grid. However, a great deal more work is needed to reduce the reliance on fossil fuels and reach net-zero emissions.
Progress on SDG 7
India has made remarkable progress towards SDG 7, particularly in providing 100% electricity connectivity to rural villages by 2022. However, Thakur explains that the next challenge is ensuring that the electricity provided is of good quality and reliability. Many rural areas still face power cuts, and the overall quality of service needs improvement. The operational and financial health of discoms (electricity distribution companies) is a major concern. Many discoms struggle with financial constraints and inefficiencies, making it difficult for them to deliver reliable electricity to rural regions. Furthermore, transmission and distribution losses remain high at around 15%, despite improvements over the past decade.
To address these challenges, the government has introduced several schemes aimed at reducing the financial stress on discoms. Thakur highlights that the PM Muft Saur Bijli Yojana is a standout initiative that enables rural households to install rooftop solar systems. These systems not only provide clean and affordable energy but can also be connected to the grid, generating surplus electricity for local communities. This initiative, along with other efforts, is helping to make energy more accessible and affordable, though there is still much work to be done.
Critical Minerals and Battery Storage
India faces challenges in sourcing critical minerals, which are essential for the energy transition. Thakur points out that while India does not have significant reserves of these minerals, it has taken proactive steps by partnering with countries such as Australia and Argentina to secure access to the necessary resources. Strategic partnerships like these are crucial for India to ensure the availability of critical minerals for its energy transition.India has also been a leader in battery deployment, particularly with lead-acid batteries. The government’s Production-Linked Incentive (PLI) scheme for battery manufacturing plays a key role in boosting domestic production and reducing dependence on imports.
Thakur believes that these efforts will ensure India meets its growing energy storage demands. However, India must avoid over-relying on countries like China. Thakur suggests that collaboration with Chinese companies in battery manufacturing and technology could be beneficial. Joint ventures with Chinese firms could help India access advanced technologies and scale up production, which is vital for meeting energy storage needs.
Innovations in Battery Technologies
Sodium-ion batteries are an exciting innovation in the field of energy storage. Thakur notes that sodium is much more widely available than lithium, making sodium-ion batteries a cost-effective and abundant alternative. These batteries hold great potential for long-duration energy storage, particularly in countries like India, which have vast solar resources. Long-duration energy storage is crucial for shifting solar energy production to periods of higher demand, and sodium-ion batteries could help address this challenge.However, while sodium-ion batteries show promise, lithium-ion technology still dominates due to its higher efficiency and established manufacturing processes. Thakur suggests that India should focus on strengthening its domestic capabilities in battery manufacturing, software development, and deployment. India’s expertise in software could be pivotal in optimizing battery management systems, improving overall efficiency and lifespan of energy storage solutions. Additionally, India should explore other technologies, such as flow batteries, which are also promising for long-duration storage. Thakur notes that China currently leads in flow battery technology, but India should keep an eye on these developments and explore adoption as the technology matures.
Blue Leaf’s Contribution to India’s Energy Transition
Blue Leaf, a Pan-Asia business owned by Macquarie, is committed to supporting India’s energy transition by deploying mature onshore renewable technologies. Thakur mentions that India is one of Blue Leaf’s largest markets outside of China, and the company has set an ambitious target of reaching 5 GW of renewable energy capacity in India by the end of this decade. Blue Leaf is focused on large-scale renewable energy projects that accelerate the transition to net-zero emissions.What differentiates Blue Leap is its willingness to take risks with innovative business models and commercial solutions. Through its innovative approach, Blue Leaf aims to meet the growing demand for renewable energy across India and Asia, contributing significantly to the region’s long-term sustainability goals.
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