In News:

In Gujarat, Masali village in Banaskantha district has become country’s first solar border village.

Key Highlights:

Location:
Masali village is located in Banaskantha district, Gujarat, approximately 40 kilometers from the Pakistan border. The village, with a population of around 800 people, has recently achieved a significant milestone by becoming India’s first fully solar-powered border village.

Solarization Initiative:

Under the PM Suryaghar Yojana, the village has installed solar rooftops on 119 houses. These solar installations collectively generate over 225 kilowatts of electricity, which is more than sufficient to meet the village’s energy needs. This initiative marks a step forward in solarizing border areas of India, promoting sustainability and reducing dependency on conventional energy sources.

Significance of the Initiative:

• India's First Solar-Powered Border Village: Masali village is the first of its kind in India, making it a model for other border regions to adopt renewable energy solutions.
• Promotes Renewable Energy: The transition to solar power encourages sustainability, reduces dependence on traditional fossil fuels, and supports India's renewable energy goals.
• Part of the Border Development Project: Masali is part of a broader government plan that aims to solarize 11 villages in Vav taluka and 6 villages in Suigam taluka, strengthening energy access in these strategically vital areas.
• Energy Security: By harnessing solar energy, the village enhances its energy reliability and self-sufficiency, especially in remote areas with limited access to the national grid.

PM Suryaghar Yojana: Launched in 2024, the PM Suryaghar Yojana aims to provide free electricity to eligible Indian households by subsidizing the installation of rooftop solar panels. Key features of the scheme include:

• A subsidy covering up to 40% of the installation cost of solar panels.
• Eligible families receive 300 free electricity units per month, saving up to Rs. 18,000 annually.
• The scheme is expected to save the government approximately Rs. 75,000 crore annually on electricity costs.
• It encourages the use of renewable energy, lowers carbon emissions, and reduces the electricity expenses for the government.

Eligibility for the Scheme:

• Indian citizens who own a house with a suitable roof for installing solar panels.
• Households must have a valid electricity connection and should not have received any prior subsidy for solar panels.

Broader Implications:

The successful solarization of Masali village is not just an energy achievement but also a significant step toward promoting renewable energy usage, enhancing energy security, and fostering sustainable development in India’s border regions. It is expected that other regions in Gujarat and across the country will follow this example, improving both local living conditions and national energy resilience.

In News:

The PM Surya Ghar: Muft Bijli Yojana, the world’s largest domestic rooftop solar initiative, is transforming India’s energy landscape with a bold vision to supply solar power to one crore households by March 2027.

Key Details:

Targeted Installations:

• 10 lakh installations by March 2025.
• 1 crore installations by March 2027.

Subsidy and Financing:

• Offers up to 40% subsidy for rooftop solar installations based on household electricity consumption.
• Collateral-free loans available for up to 3 kW solar systems at a 7% interest rate.

Key Benefits:

The PM Surya Ghar: Muft Bijli Yojana offers several significant benefits to participating households:

• Free Electricity for Households: The scheme provides households with free electricity through the installation of subsidized rooftop solar panels, significantly reducing their energy costs.
• Reduced Electricity Costs for the Government: By promoting the widespread use of solar power, the scheme is expected to save the government an estimated ?75,000 crore annually in electricity costs.
• Increased Use of Renewable Energy: The scheme encourages the adoption of renewable energy sources, contributing to a more sustainable and environmentally friendly energy mix in India.
• Reduced Carbon Emissions: The transition to solar energy under this scheme will help lower carbon emissions, supporting India's commitment to reducing its carbon footprint.

Eligibility Criteria:

1. The applicant must be an Indian citizen.

2. Must own a house with a roof that is suitable for installing solar panels.

3. The household must have a valid electricity connection.

4. The household must not have availed of any other subsidy for solar panels.

Impact

The   PM Surya Ghar: Muft Bijli Yojana is expected to have far-reaching outcomes, both for individual households and the nation as a whole:

• Household Savings and Income Generation: Households will benefit from significant savings on their electricity bills. Additionally, they will have the opportunity to earn extra income by selling surplus power generated by their rooftop solar systems to DISCOMs. For instance, a 3-kW system can generate over 300 units per month on average, providing a reliable source of energy and potential revenue.
• Expansion of Solar Capacity: The scheme is projected to add 30 GW of solar capacity through rooftop installations in the residential sector, significantly contributing to India's renewable energy goals.
• Environmental Benefits: Over the 25-year lifetime of these rooftop systems, it is estimated that the scheme will generate 1000 BUs of electricity while reducing CO2 emissions by 720 million tonnes, making a substantial positive impact on the environment.
• Job Creation: The scheme is also expected to create approximately 17 lakh direct jobs across various sectors, including manufacturing, logistics, supply chain, sales, installation, operations and maintenance (O&M), and other services, thereby boosting employment and economic growth in the country.

Model Solar Village

• Under the "Model Solar Village" component of the scheme, the focus is on establishing one Model Solar Village per district throughout India.
• This initiative aims to promote solar energy adoption and empower village communities to achieve energy self-reliance.
• An allocation of ?800 crore has been designated for this component, with ?1 crore provided to each selected Model Solar Village.
• To qualify as a candidate village, it must be a revenue village with a population of over 5,000 (or 2,000 in special category states). Villages are selected through a competitive process, evaluated on their overall distributed renewable energy (RE) capacity six months after being identified by the District Level Committee (DLC).
• The village in each district with the highest RE capacity will receive a central financial assistance grant of ?1 crore.
• The State/UT Renewable Energy Development Agency, under the supervision of the DLC, will oversee the implementation, ensuring these model villages successfully transition to solar energy and set a benchmark for others across the country.

In News:

• NTPC has achieved the first-ever synthesis of CO? (captured from flue gas) and hydrogen (produced via a PEM electrolyzer) into methanol at its Vindhyachal plant.
• This marks a significant step in carbon management technology, aimed at advancing sustainable fuel production.

About CO?-to-Methanol Conversion:

• Carbon Dioxide Capture:
  • CO? is captured from industrial sources, such as power plants, or directly from the atmosphere.
• Hydrogen Production:
  • Renewable energy sources like solar or wind power are used to produce hydrogen through water electrolysis.
• Methanol Synthesis:
  • The captured CO? is combined with hydrogen in the presence of a catalyst to produce methanol, typically under high pressure and temperature conditions.

Benefits of CO?-to-Methanol Conversion:

• Carbon Capture and Utilization (CCU):
  • This technology reduces the impact of CO? on the atmosphere by converting it into useful products.
• Renewable Fuel Source:
  • Methanol produced through this process can be used as a fuel for transportation, power generation, or as a feedstock for chemicals.
• Energy Storage:
  • Methanol offers a more practical storage and transportation option than hydrogen, making it a potential energy storage solution and aiding the transition to hydrogen-based energy systems.
• Versatile Feedstock:
  • Methanol is widely used in producing chemicals, solvents, and plastics, supporting various industrial applications.

What is Methanol?

• Brief: Methanol, also known as methyl alcohol or wood alcohol, is the simplest form of alcohol. It is a clear, colorless, and flammable liquid with a distinctive odor.
• Key Properties:
  • Colorless, miscible with water, toxic if ingested, flammable.

In News:

• India is in talks with Oman, UAE, Saudi Arabia, Maldives, and Singapore to establish cross-border electricity transmission lines.
• This is part of the ambitious OSOWOG initiative to create a global renewable energy grid.

Key Points:

• Proposed by the Prime Minister of India at the 2018 International Solar Alliance (ISA) Assembly.
• Aims to create a transnational electricity grid that delivers power worldwide.
• Led by India and the UK, in collaboration with ISA and the World Bank Group.

Vision of OSOWOG:

• Connect regional grids through a common infrastructure for the transfer of renewable energy, focusing on solar power.
• Harness solar and other renewable energy from regions where the sun is shining and efficiently transmit it to areas of need.
• Aim to provide power to 140 countries using clean and efficient solar energy.

Phases of OSOWOG:

• Phase 1:
  • Connect the Indian grid with grids in the Middle East, South Asia, and South-East Asia.
  • Share solar and other renewable energy resources.
• Phase 2:
  • Expand the interconnected grid to include renewable resources from Africa.
• Phase 3:
  • Achieve a global interconnection aiming for 2,600 GW by 2050.
  • Integrate as many countries as possible into a single renewable energy grid.

Global Collaboration:

• Involves national governments, international organizations, legislators, power operators, and experts.
• Focus on accelerating infrastructure development for a clean energy-powered world.

In News:

India's journey toward a sustainable energy future has gained significant momentum with a series of policy reforms designed to reduce reliance on fossil fuels and accelerate the shift to clean energy. The recent Asia-Pacific Climate Report from the Asian Development Bank (ADB) highlights India's remarkable progress in reforming its fossil fuel subsidy system and its efforts to foster renewable energy, positioning the country as a leader in the region's green transformation.

Key Highlights from the Report:

India's Fossil Fuel Subsidy Reform

• India has successfully reduced fossil fuel subsidies by 85%, from a peak of $25 billion in 2013 to just $3.5 billion by 2023.
• The reform strategy is built on a "remove, target, and shift" approach, which involved phasing out subsidies on petrol and diesel from 2010 to 2014, followed by incremental tax hikes on these fuels through 2017.
• These fiscal changes created space for funding renewable energy projects, such as solar parks, electric vehicle initiatives, and infrastructure improvements.

Role of Taxation in Supporting Clean Energy

• Between 2010 and 2017, India introduced a cess on coal production and imports, which contributed significantly to funding clean energy projects. Approximately 30% of the cess was directed to the National Clean Energy and Environment Fund.
• This funding supported major renewable energy initiatives, including the National Solar Mission and Green Energy Corridor project, helping reduce the cost of utility-scale solar energy and expand off-grid renewable energy solutions.
• The introduction of the Goods and Services Tax (GST) in 2017 altered the financial landscape, redirecting the cess funds to GST compensation rather than directly to clean energy.

Government Schemes and Initiatives

• India is advancing its clean energy agenda through several key government schemes:
  • National Green Hydrogen Mission: Aimed at establishing India as a leader in green hydrogen production.
  • PM-KUSUM Scheme: Focused on promoting solar energy among farmers, allowing them to produce renewable power.
  • PM Surya Ghar: Muft Bijli Yojana: A program designed to provide solar energy access to rural communities, reducing dependency on fossil fuels.

A Strategic Shift: From Subsidies to Clean Energy

• India’s subsidy reforms are an important part of its strategy to transition from a reliance on fossil fuels to a focus on renewable energy investments.
• These changes reflect India’s long-term goal of achieving net-zero emissions by 2070, as outlined in its climate action plans.

Global Significance of India’s Efforts

• The reduction in fossil fuel subsidies and the surge in clean energy investment serve as a model for other nations seeking to balance economic development with climate action.
• India’s approach demonstrates that policy reforms and innovative financing mechanisms can be used to accelerate the transition to a cleaner, greener economy while creating job opportunities and fostering economic growth.

In News:

The International Energy Agency's (IEA) World Energy Outlook 2024 offers an in-depth analysis of global energy trends, emphasizing the shift towards clean energy, growing energy demand, and the effects of geopolitical conflicts.

Key Highlights:

• Economic Growth:
  • India was the fastest-growing major economy in 2023 with a 7.8% growth rate.
  • On track to become the world’s third-largest economy by 2028.
  • Surpassed China in 2023 to become the most populous country globally, despite a fertility rate below replacement level.
• Energy Demand Surge:
  • India is projected to experience the highest increase in energy demand over the next decade.
  • By 2035, India’s total energy demand is expected to rise by 35%, driven by rapid industrialization, urbanization, and increased living standards.
• Urbanization and Infrastructure Growth:
  • Over 12,000 cars are expected to be added to Indian roads daily by 2035.
  • Built-up space is set to increase by over 1 billion square meters annually, surpassing the total built space of South Africa.
• Industrial Expansion:
  • Iron and steel production is expected to grow by 70% by 2035.
  • Cement output is set to increase by 55%.
  • Air conditioner stock to grow more than 4.5 times, with electricity demand from cooling expected to exceed Mexico’s total consumption in 2035.
• Energy Supply & Coal:
  • India’s electricity generation capacity is projected to nearly triple to 1,400 GW by 2035.
  • Coal remains a dominant energy source despite growth in renewables:
    • Coal-fired power capacity will increase by 60 GW by 2030.
    • Coal will continue to account for over 30% of electricity generation even as solar PV expands.
    • By 2035, coal use in industries like steel and cement will grow by 50%.
• Renewable Energy & Clean Tech:
  • India is on track to become a global leader in renewable energy, with a nearly 3x increase in electricity generation capacity.
  • The country is expected to have the world’s third-largest installed battery storage capacity by 2030.
  • By 2030, low-emission energy sources (solar, wind, nuclear) are expected to generate over 50% of India’s electricity.
• Electric Vehicles & Oil Demand:
  • The rapid adoption of electric vehicles (EVs) is expected to peak India’s oil demand by the 2030s, reducing reliance on oil for transportation.
  • Oil demand for transport will decline as EVs proliferate, though demand for oil in other sectors (e.g., petrochemicals) will continue.
• Net Zero Target:
  • India aims to achieve net-zero emissions by 2070.
  • By 2035, clean energy generation could be 20% higher than current policy projections, thanks to electric mobility, hydrogen use, and improved energy efficiency.
  • CO2 emissions are projected to be 25% lower than under the Stated Policies Scenario (STEPS).
• Policy Support:
  • India’s clean energy goals are backed by government initiatives, such as:
    • PM-KUSUM scheme for solar energy in agriculture.
    • National Solar Mission.
    • Production Linked Incentive (PLI) Scheme to boost domestic solar PV manufacturing.
• Global Energy Trends:
  • Geopolitical Risks: Global energy security remains affected by geopolitical tensions (e.g., Russia-Ukraine conflict, Middle East tensions).
  • Energy Transition: Global shift toward clean energy, with solar and wind power investments accelerating.
  • Oil & Gas Surplus: Oil and LNG supply expected to increase, putting downward pressure on prices by the late 2020s.
  • Electric Mobility: EVs projected to account for 50% of new car sales by 2030.
  • Energy Efficiency: Despite efforts, global targets for doubling energy efficiency by 2030 are unlikely to be met with current policies.

IEA Overview:

• The International Energy Agency (IEA) provides analysis and policy advice on energy security, economic development, and environmental sustainability.
• Established in 1974, it now includes 31 member countries and 13 association countries, including India.
• Major publications: World Energy Outlook, India Energy Outlook, World Energy Investment Report.

In News:

India has recently celebrated a landmark achievement in its renewable energy sector, with its total renewable energy capacity surpassing 200 GW as of October 10, 2024. This milestone, reported by the Central Electricity Authority, showcases the country’s growing commitment to clean energy and its strategic shift towards a more sustainable future.

Overview of India’s Renewable Energy Landscape

As of October 2024, India's total electricity generation capacity stands at 452.69 GW, with renewable sources contributing a substantial 201.45 GW, representing 46.3% of the overall capacity. This shift highlights India’s increasing reliance on cleaner, non-fossil fuel energy.

Key contributors to this capacity include:

• Solar Power: Leading with 90.76 GW, capitalizing on India's abundant sunlight.
• Wind Power: Following closely at 47.36 GW, leveraging the country’s vast wind corridors.
• Hydropower: Large hydro projects add 46.92 GW, while small hydro contributes an additional 5.07 GW.
• Biopower: Incorporating biomass and biogas energy, contributing 11.32 GW.

Together, these resources are pivotal in reducing dependence on fossil fuels and enhancing energy security.

Leading States in Renewable Energy Capacity

Certain states are at the forefront of this renewable energy expansion:

• Rajasthan: 29.98 GW, benefiting from ample land and sunlight.
• Gujarat: 29.52 GW, driven by robust solar and wind initiatives.
• Tamil Nadu: 23.70 GW, utilizing favorable wind conditions.
• Karnataka: 22.37 GW, supported by a mix of solar and wind projects.

Key Schemes and Programs

The Indian government has introduced numerous initiatives to accelerate renewable energy capacity, aiming for 500 GW from non-fossil sources by 2030. Notable programs include:

• National Green Hydrogen Mission
• PM-KUSUM Scheme
• PM Surya Ghar Scheme
• Production-Linked Incentive (PLI) for solar PV modules

These efforts reflect the government's commitment to fostering a sustainable energy future while addressing the challenges posed by climate change and energy security. Here are some other ongoing key initiatives:

• Notification of a trajectory for renewable energy power bids of 50 GW per annum by Renewable Energy Implementation Agencies (REIAs) from FY 2023-24 to FY 2027-28.
• Foreign Direct Investment permitted up to 100 percent under the automatic route to attract investments.
• Waiver of Inter-State Transmission System charges for solar and wind power projects commissioned by June 30, 2025; green hydrogen projects until December 2030; and offshore wind projects until December 2032.
• Announced Renewable Purchase Obligation trajectory until 2029-30, including separate RPO for Decentralized Renewable Energy.
• A Project Development Cell has been established to attract and facilitate investments in the renewable sector.
• Standard Bidding Guidelines issued for tariff-based competitive bidding for procurement of power from grid-connected solar, wind, and wind-solar projects.
• Ultra Mega Renewable Energy Parks are being set up to provide land and transmission for large-scale renewable energy projects.
• Cabinet approval for a Viability Gap Funding scheme for offshore wind energy projects, facilitating the installation and commissioning of 1 GW of offshore wind energy capacity along the coasts of Gujarat and Tamil Nadu.
• Issued Electricity (Rights of Consumers) Rules, 2020, for net-metering up to 500 kilowatts or the electrical sanctioned load, whichever is lower.
• The “National Repowering and Life Extension Policy for Wind Power Projects, 2023” has been released.
• “Strategy for Establishment of Offshore Wind Energy Projects” outlines a bidding trajectory of 37 GW by 2030.
• Offshore Wind Energy Lease Rules, 2023, notified to regulate the grant of leases for offshore wind energy development.
• Procedure for Uniform Renewable Energy Tariff (URET) has been established.
• Standard & Labelling (S&L) programs for Solar Photovoltaic modules and grid-connected solar inverters have been launched.
• A transmission plan has been prepared to augment transmission infrastructure until 2030.
• The Electricity (Late Payment Surcharge and Related Matters) Rules have been notified.
• Green Energy Open Access Rules 2022 have been issued to promote renewable energy.
• Launched the Green Term Ahead Market (GTAM) to facilitate the sale of renewable energy power through exchanges.
• Orders issued to ensure that power is dispatched against Letters of Credit or advance payment for timely payments to renewable energy generators.

Location: Situated in Al Dhafra, Emirate of Abu Dhabi.

Specifications:

• Reactor Count: Four nuclear reactors.
• Annual Output: 40 terawatt-hours (TWh) of electricity.

Objective and Significance:

• Energy Diversification: The plant is a key component of the UAE’s energy diversification efforts, providing clean and efficient power.
• Environmental Impact: It is projected to reduce carbon emissions by up to 22 million tons annually, equivalent to removing 4.8 million cars from the roads.

International Nuclear Energy Agreements

Purpose: Nuclear energy agreements are bilateral or multilateral treaties focused on the peaceful use of nuclear energy. They facilitate international cooperation in areas such as technology transfer, fuel supply, safety standards, and non-proliferation.

India’s Nuclear Energy Agreements:

• General Overview: India has established civil nuclear cooperation agreements with various countries including France, the United States, Russia, Namibia, Canada, Argentina, Kazakhstan, South Korea, Australia, Sri Lanka, and the United Kingdom.

Key Agreements:

• India-Russia: A longstanding partnership since the Cold War, with Russia significantly contributing to the construction of the Kudankulam Nuclear Power Plant in Tamil Nadu.
• India-US Civil Nuclear Agreement (2008): Known as the 123 Agreement, it marked India’s entry into the global nuclear market despite its non-signatory status to the Nuclear Non-Proliferation Treaty (NPT). This agreement enabled India to engage in nuclear trade with the US and other Nuclear Suppliers Group (NSG) members.
• India-France Civil Nuclear Agreement (2008): This agreement allows France to supply nuclear technology and fuel to India, including involvement in the proposed Jaitapur Nuclear Power Project in Maharashtra.
• India-Canada Nuclear Cooperation Agreement (2010): This historic deal marked a return to cooperation after a hiatus following Canada's sanctions in 1974, allowing uranium supply for India’s civilian reactors.
• India-Japan Nuclear Agreement (2016): This agreement facilitates the export of nuclear technology from Japan to India, reflecting Japan’s confidence in India's non-proliferation commitments.
• India-Kazakhstan: Agreements with Kazakhstan for uranium supply, given Kazakhstan’s status as a major uranium producer.
• India-Australia Civil Nuclear Cooperation Agreement: Permits Australia to export uranium for India’s civilian nuclear program. Notably, Australia typically exports uranium only to NPT signatories.
• India-United Kingdom Nuclear Agreement (2015): This agreement promotes collaboration on nuclear technology and research between India and the UK.
• India-UAE Civil Nuclear Energy Cooperation: Recently, India and the United Arab Emirates (UAE) formalized their collaboration in civil nuclear energy through an MoU.