Energy transition to achieve a Trillion dollar economy- Karnataka‘s Vision

Energy transition to achieve a Trillion dollar economy- Karnataka‘s Vision

 Energy is the cornerstone of current economic development programs, with sustainability as the primary focus area. The energy transition plays a pivotal role in this context. The Government of Karnataka, along with FICCI, McKinsey, has crafted a strategic report titled "ONE TRILLION $ ECONOMY: THE KARNATAKA STATE'S VISION." Notabaly Ramesh Shivanna, a member in this committee, made significant contributions to the vision for energy transition and Renewable energy within this report as below.

 

Karnataka is the leading state for renewable energy in India, reaching 15.8 gigawatts (GW) of total installed capacity as of October 2022 ( Wind:5.2 GW, Solar :7.9GW, Small Hydro: 0.9 GW, Co-gen: 1.7 GW, Biomass: 0.14 GW) and appx an other 15 GW Solar and Wind plants is under construction. Karnataka constructed the  2GW of largest solar park in single place in Pawgada with a land area of about 13000 Acres in a single place. 

 

Karnataka has been progressively working on several positive renewable energy policies (e.g. open access, the introduction of a hybrid wind-solar development policy, Battery storage, Pump storage to achieve the round the clock (RTC) grid availability policy, Electrical vehicle policy,   and significant steps to reverse Karnataka’s historic reliance on energy imports). The solar and Wind potentials Also promises to the investors in Karnataka for the Round the Clock generation mechanisms. 

 

Karnataka has a potential  to move from being a net importer of electricity to a net exporter. There is clear scope for the state to become a net exporter, but this is currently constrained by insufficient interstate grid capacity;

 

Karnataka’s long-term strategy to diversify and decarbonise its electricity supply in tune with the central plan has been aided by technological improvements, cost deflation, availability of cheaper financing and a growing interest from global renewable energy developers, utilities and investors. This ongoing transformation offers a sustainable solution to the country’s terrible energy poverty and air pollution problems, also reducing its excessive reliance on imported fossil fuels and coal. At the same time, it provides an opportunity to create jobs and boosts the government’s “Make in India” program with manufacturing potential in solar, wind, batteries, electric vehicles and the entire energy efficiency value chain (e.g., solar irrigation pumps, solar hot water, heat pumps, street lights, decentralised solar systems etc.). 

The green job creation can be a game-changer for boosting the economy, especially for the rural community with the majority of the jobs being available for unskilled and semi-skilled workers. People who are considered ineligible for several permanent and well-paid jobs can get maintenance, operations, installation and sales jobs in this sector. Not just limited to monetary gains in terms of GDP, the benefits of renewables can go far beyond the traditional and restricted measurements of economic development. The process of generating renewable sources of energy mainly takes place in the rural areas of the country. In this way, while supplying a fair share of the power generated to these areas, the renewable sector also acts as a catalyst in the upliftment of these areas. 

 

Green hydrogen is set to play a leading role in the energy transition. Green hydrogen is a fastest-growing economy leading through sustainable and climate-neutral development. The global demand for green hydrogen and its applications is expected to increase exponentially over the next 20 years, meaning that this renewable energy source will play an important role in the energy transition. Secondly the Karnataka has a high potential for Green hydrogen. The Green hydrogen ecosystem can create a USD 20-billion green technology market in India and will enhance domestic job creation, India can be seen as a net exporter of hydrogen in the future to European, Southeast Asian countries, and Africa. Fuel is just one of the uses of green hydrogen, while it can also be used for industrial and domestic purposes. Green hydrogen can be a game changer for the energy transition. Energy companies are well-positioned to lead the transition, but to do that they need to develop new technology and infrastructure to provide an affordable, reliable and greener energy mix. And that means they need capital and government support to reduce the financial and legal risks of that process.

Challenges

•   The poor State Electricity Grid and infrastructure 

•   High Transmission and distribution losses and charges, 

•   High wheeling and cross subsidy charges in the state

 

Solution: 

1.     Govt of India has already initiated the Green energy corridor(GEC) in Karnataka along with other states like AP, Gujarath, Himachal Pradesh , Maharastra , MP, TN and Rajasthan. It is been targeted to complete by 2025-26 under central finance assistance(CFA)up to 33% of the project cost. The CFA will help in offsetting the intra state transmission charges and thus keep the power costs down. It will contribute to the long term energy security and will promote ecologically sustainable growth of reducing the carbon footprint. 

2.     . The Creating Green corridors along with the state industrial corridors . All the KIADB industrial area should be  powered by private partnership model with 100 % Round the clock (RTC) green energy, many investors are ready to supply power at better tariff than existing .

3.     Green hydrogen plants looking for the port connected industrial zones also requires separate grid corridor for the green energy with few benefits like exemptions in wheeling and banking charges, cross subsidy charges etc.,  

4.     Govt of India has launched the Kissan Urja Surakshan evam  Uttaan Mahabhiyan (KUSUM Scheme) with an objective to provide financial support to farmers through by providing Solar pump sets. Karnataka should take initiative to implement this and reduce the pumps free power burden on the industrial and commercial consumers and also reduces the cross subsidy. 

5.     The government shall declare more solar parks in the state and future generation shall be focus on the Round the clock (RTC) Renewable energy parks

6.     All the farmer pumps feeders in the state should be separated  to separate feeder in the corresponding substation and power by Solar power for day time utilisation. This can be with PPP model investment

7.     District wise RTC - Renewable Energy shall be produced to take care of the state and the excess power shall be sold to out side the state. 

8.     All the Industrial zones and corridors should have mandatory waste to energy power generation and all the urban cities shall be mandated to waste to energy power generation.

 

Key Suggestions on policy initiatives  

 

•    Hydroelectricity at 3.6 GW or 13% of current capacity provides much-needed dispatch-able energy to balance the state’s growing, but variable wind and solar output. Pumped hydro storage, as well as Battery energy storage systems (BESS) policy Pump storage policy needs to be focus.

•    Thermal power currently totals 10 GW (38% of capacity and 49% of generation), and we expect this to remain steady, but critically this needs to better incorporate more flexible, peaking capacity. Repowering policy for the wind, Hydrogen policy shall be released, 

•    Offshore wind power generation policy  in the costal belt of Karnataka shall be given focus.