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22/08/2020 - Energy

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August 22, 2020

The generating capacity through renewable sources should be fully supported along with the associated costs by the government. Examine (200 Words)

Refer - Financial Express

Enrich the answer from other sources, if the question demands.

4 comments
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IAS Parliament 4 years

KEY POINTS

·         Generation from renewables is intermittent in nature since unexpected cloud cover, or sudden fall in wind velocity will lead to an immediate dip in generation. In order to maintain the stability of the grid, we need to rely on other resources to counterbalance the drop, which can be done best by hydro-based generation, and in the absence of hydro, through gas-based generation.

·         The problem, as far as India is concerned, is that we have not been able to make substantial additions to our hydro capacity during the last decade or so due to a variety of problems; for gas, there is practically no spare domestic availability. One can, of course, import gas, but the price of gas is volatile.

·         In this situation, we are forced to balance the grid through our coal-based plants. Consequently, with our target of 175 GW of renewables by 2022 (and also 450 GW by probably 2030), the coal-based plants at certain times of the day will operate at below the technical minimum.

·         The important point to note is that we do not have any credible estimate of the ‘balancing cost’ for the country as a whole. However, in a study done in CEA in December 2017, it was estimated that in the case of Tamil Nadu, this cost would be Rs 1.57 per unit spread over the renewable generation.

·         The corresponding figure for Gujarat was estimated at Rs 1.45 per unit. This cost would include, amongst others, the impact of deviation settlement, the impact of having to back down and extra transmission charge. This cost, if added to the cost of generation from renewables, will give a completely different story vis-à-vis cost of generation from coal-based plants.

·         The second aspect that we ignore is the cost of recycling the solar waste once its life is over. Cost of recycling, however, will come down in the future when the waste can be commercially extracted.

·         As of now, even internationally, only glass, aluminium and copper can be extracted from the waste commercially. It is estimated that the cost of recycling can vary from $250 to $600 per tonne, which is far more than the value of the recycled material. In addition, there will be transportation cost which can range from 60% to 100% of the recycling cost.

·         To conclude, while addition to generating capacity through renewables should be fully supported, the associated costs should be estimated and paid for. While the cost of recycling is easy to calculate and can be easily added in the tariff up front, accounting for ‘balancing cost’ can be complicated. So let’s get our arithmetic right when it comes to comparing the generation cost of renewables vis-à-vis coal.

 

 

Dr Younis Bashir 4 years

Please give feedback

IAS Parliament 4 years

Good attempt. Keep Writing.

Abhishek kumar 4 years

Please review 

IAS Parliament 4 years

Try to stick to the word limit, underline key points, improve the presentation, and handwriting. Keep Writing.

K. V. A 4 years

Pls review

IAS Parliament 4 years

Good attempt. Keep Writing.

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