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.