Decentralisation consists of small plants or even micro-generators that produce power close to its point of use rather than relying on a central, distributed power grid. This could take the form of an industrial solar plant or small, domestic units such as solar panels or wind turbines attached to homes. The shift towards decentralisation can be seen in many countries and is being implemented to improve efficiency in supplying electricity to remote locations.
Investment in mini-grids and supportive policies could serve 450 million people by 2030
The pace of digitalisation in energy is increasing. Investment in digital technologies, most importantly in smart grids, by energy companies has risen sharply over the last few years. Smart grids, with its unique features, has the potential to reduce the projected peak demand increases by up to 24% across some of the major regions of the world. The ambitious renewable energy targets of countries such as China and India are expected to drive the smart grids market in the future.
Under the Government of India’s National Smart Grid Mission (NSGM), 17 pilot projects, including 13 pilot projects with an evaluated project cost of `939.65 crore with Government support of `340.88 crore, are under various stages of implementation across the country. Over a million consumers are expected to benefit upon completion of these projects.
consumers expected to benefit from NSGM
The National Mission for Enhanced Energy Efficiency was launched a decade ago to enhance adoption of energy efficient measures and devices. In 2015, Unnat Jeevan by Affordable LEDs for All (UJALA) programme was launched to promote the use of more efficient LED lighting for households. The scheme targets replacing 770 million LED lights in a three-year period which is expected to result in annual energy savings of 105 bn kWh and reduce peak load by 20,000 MW. This is also expected to reduce annual GHG emissions by 79 million tonnes of CO2.
of the target LEDs distributed
energy saved per year
The Indian Government has undertaken many initiatives to incentivise and encourage generation of Renewable Energy (RE) in the country. As per the National Electricity Plan (NEP), the country aims to achieve 175 GW of renewable energy capacity by FY2021-22. Continuous improvement in technology have resulted in cost parity of RE and thermal power which has augmented RE capacity addition in the country. At present, India has close to 70 GW of installed renewable energy capacity, about 12.5 GW is under implementation and bids have been received for almost 25.5 GW.
solar power targeted by Gol under NEP
The merchant power markets have played a pivotal role in improving energy security of the country. The power exchanges have enabled supply of power from surplus to deficit regions thereby bridging the demand supply deficit. As of May 2018, the cumulative volume traded through Power exchanges (including spot market, short-term and medium-term contracts) has grown to approximately 9% of total electricity generated in the country.
At present, over 440 power generators and 4,000 industrial consumer trade in Indian Energy Exchange (IEX)
44.9 BN KWh
traded volumes at IEX, grew at a 9.2% CAGR between FY2013-14 and FY2017-18
The global automotive industry is undergoing a transformation to battery powered Electric Vehicle from Internal Combustion Engine (ICE) technologies.
The ripple effects of this disruption are being experienced in the Indian market. The move toward electric mobility in India requires mobilising lot of moving blocks, from building a policy framework to drive EV adoption (including standards and regulations around interfaces such specifications for charging points) to kick-starting the EV ecosystem by investing in infrastructure and public transportation. The utilities sector is also set to change with EV disruption. Shift to EV will augment the demand for electricity and provide impetus to the renewable energy sector to cater to the growth in power demand. The combination of vehicle electrification with new methods of mobility will define the demand for electricity in the future.
The electrification of automobiles is compelling and inevitable as multiple factors continue to drive this change:
Changes in Demand
The demographics of emerging economies are likely to change consumption and work patterns. However, energy growth in the OECD (Organisation for Economic Cooperation and Development) countries, has not increased at the same pace. Strong economic growth will mean the emerging economies, the non-OECD countries, are likely to account for nearly all of the energy growth in the coming decades.
The global transportation industry is facing one of the major disruptions in the form of shared mobility mainly due to rapid urbanisation. At present, shared miles (taxis + ride-sharing firms, excluding car rental) account for less than 4% of global miles travelled and is estimated to reach 7% of total miles traveled by 2020 and 26% of miles traveled by 2030. India offers the right mix of ingredients to become one of the largest markets for shared mobility in the world. It has large clusters of population, a young demographic profile which is well connected to the internet and rising discretionary income.
The following four drivers will boost shared mobilityin India:
Large populated cities: India has 50 cities that have populations of more than a million. Large clusters of the population are the first prerequisite for successful shared mobility foray.
Public Infrastructure ramp-up is slow: Public Infrastructure is not in pace with the growing demand, thus pushing consumers towards private modes of transport.
Smartphone penetration/Internet access: India is home to the third largest internet user base (after US and China) in the world, aiding to develop connectivity-based solutions for fleet aggregators.
Favourable demographic profile: India has a population of 1.3 bn, and as per the World Bank 850 mn people are below the age of 35. The younger population adapts faster to new trends and is less likely to own a car, thus could easily adapt to new ways of mobility.
Source: Morgan Stanley Research