Challenges Faced by Renewable Energy

Background

Let us begin with a simple idea:
Renewable energy is clean and sustainable, but it is not always reliable in the way conventional power is.

Low Plant Load Factor (PLF)

• Plant Load Factor (PLF) means the actual electricity generated as a percentage of maximum possible generation.
• Wind and solar power have much lower PLF compared to thermal power plants.
• As a result, more renewable capacity must be installed to generate the same amount of electricity as a coal-based plant.
• This increases land use, capital cost, and infrastructure requirements.

Intermittency Problem

• Renewable sources depend on natural cycles:
  • Solar → only during daytime
  • Wind → varies by season and time
• Electricity demand, however, is continuous and predictable.

Mismatch example:

• Solar peak: 11 am – 3 pm
• Wind peak: late night / early morning
• Demand peak: 6 pm – 9 pm (evening household demand)

👉 Neither solar nor wind can independently meet peak demand.

Transmission and Cost Issues

• Renewable power plants are often located far from consumption centres.
• Due to intermittency, transmission lines remain underutilised, raising per-unit transmission costs.
• NITI Aayog observed that:
  • Electricity buyers in poorer states are less willing to purchase renewable power because it is costlier than conventional sources.

Financial Weakness of DISCOMs

• India’s Distribution Companies (DISCOMs) are mostly loss-making.
• They lack funds to:
  • Upgrade grids
  • Integrate renewables
  • Invest in storage and smart infrastructure

Smart Grid: A Technological Solution

What is a Smart Grid?

A Smart Grid is an electricity network that uses digital technology to:

• Enable two-way communication between utility and consumers
• Monitor, analyse, and respond in real time to changes in demand and supply

Why is it Important?

Smart grids use → Sensors, Automation, Advanced control systems

This makes the grid → Reliable, Efficient, Flexible, especially for renewable integration

National Smart Grid Mission (NSGM)

• Launched in 2015
• National Smart Grid Mission
• Objective: Plan, implement, and monitor smart grid policies in India

Benefits of Smart Grid

• More efficient transmission
• Faster power restoration after faults
• Reduced peak demand
• Large-scale integration of renewable energy

Hybrid Energy Systems: Bridging the Gap

Why Hybrid Systems?

Renewables alone cannot provide 24×7 power.
Hence, we need hybrid systems that combine:
→ Renewable generation
→ Energy storage
→ Flexible power sources

What Do Hybrid Systems Include?

• Battery storage (Li-ion)
• Hydro power
• Gas-based power plants

These resources can quickly ramp up or down.

How Do They Work?

• Excess renewable energy is stored during low-demand hours
• Stored energy is released during peak demand
• Result:
  ✔ Baseload supply
  ✔ Flexibility
  ✔ Clean energy round the clock

Cost Advantages

• Li-ion battery cost expected to fall from $220–240/kWh to below $100/kWh
• Solar tariffs fell from ₹4.63/kWh (2016) to ₹2.50/kWh in recent auctions

Can Hybrid Systems Replace Coal?

• Yes, potentially 30–40% of existing coal-fired power plants in India can be replaced.

Critical Minerals: Backbone of Green Transition

Why Are Critical Minerals Important?

Renewable technologies are mineral-intensive:

• Electric vehicle → 6× minerals of conventional car
• Wind plant → 9× minerals of gas-based plant

Key Critical Minerals

• Lithium, nickel, cobalt, manganese, graphite → batteries
• Rare Earth Elements (REEs) → permanent magnets for wind turbines & EV motors
• Copper & aluminium → electricity networks
  • Copper is the cornerstone of all electrical technologies

Challenges for India

• Global supply chains are highly concentrated in a few countries.
• Rising demand + skewed distribution = high supply risk.

What Needs to Be Done?

• A multidimensional mineral policy
• Expand exploration of domestic resources
• India has potential reserves of: Nickel, Cobalt, Molybdenum, Heavy REEs

Recent Breakthrough

• Geological Survey of India discovered 5.9 million tonnes of lithium in:
  • Salal–Haimana area, Reasi district, J&K
• Classified as G3 category (low confidence but confirmed presence)
• First lithium discovery in India

Strategic Measures

• Create Strategic Mineral Reserves (like petroleum reserves)
• Invest in:
  • Advanced exploration technology
  • Processing
  • Recycling, Reusing, Repurposing (R3 technologies)

KABIL: Ensuring Mineral Security

What is KABIL?

Khanij Bidesh India Ltd.
A joint venture under the Ministry of Mines to ensure mineral security.

Participating CPSEs

• National Aluminium Company Ltd. – 40%
• Hindustan Copper Ltd. – 30%
• Mineral Exploration Company Ltd. – 30%

Objectives

• Ensure consistent supply of critical minerals
• Focus on lithium and cobalt, among 12 identified strategic minerals

Functions of KABIL

• Overseas identification, exploration, mining, and processing
• Commercial supply for India’s domestic needs
• Strategic partnerships with mineral-rich countries

International Cooperation

• MoU signed with Australia for cooperation in: Lithium, Cobalt, Strategic mineral processing

Concluding Insight

India’s renewable transition is not just an energy challenge—it is a grid, storage, mineral, and geopolitical challenge.

• Smart Grids solve variability
• Hybrid systems ensure reliability
• Critical minerals determine energy security
• KABIL ensures strategic self-reliance