Investing in renewables is a smart economic choice

The power sector in India is witnessing a significant change that will be redefining the industry outlook, observed Amit Gupta, Business Head – Energy Infrastructure Solutions, Delta Electronics India. He adds, “The industry will aim towards the application of innovations across the value chain, which will include digitization of grid operations, smart grids, energy efficiency intervention and more.”

What’s your take on the recent performance of power sector in India?
India is becoming an influential driver of a trend in the global market for the power sector. It has been witnessed that generation capacity has increased at a steady rate over last decade, with CAGR growth of more than 8 percent between 2006 and 2019. Thermal power has a major share here, although the penetration of renewable energy is gradually growing in the last few years. The government has been initiating policies to push the inclination towards renewable energy solutions. The power sector has been adopting various renewable energy solutions to build a robust industry and reducing the dependence on the energy generated from fossil fuels.

Like every sector, the power industry also witnessed the impact of COVID-19, especially with high energy consumption customers such as industries and railways having limited demand due to lockdown. But the sector showcased remarkable resilience during the COVID-19 pandemic with constant generation and supply to household and essential business, which were functioning during the lockdown. At present, with relaxation being announced by several states, the sector is reviving.

With situation getting stabilized, the demand for coal and oil will be restored but the growth will be witnessed in renewable energy which presents an opportunity to increase the role of green power that can be cheaper and support meeting the current demand. As of June, the renewable was 26 percent in installed capacity and 9 percent in generation contribution. Going forward, the generation should be near 20 percent in line with new RPO guidelines. Investing in renewables is not only essential but also a smart economic choice.

What is the future of Indian power sector in 2021?
The power sector in India is witnessing a significant change that will be redefining the industry outlook. It has undergone a massive transformation, with significant reforms and policies by the government. This has led to creating a single national power grid, resulting in access to power for the citizens and promoting the dynamic growth of the renewable energy infrastructure. With the government’s ambitious target to achieve 175 GW renewable energy capacity in the country by 2022, the business environment has embraced clean energy sources. It is estimated that renewable energy resources will contribute around 21 percent of the country’s total electricity demand in the year 2021-22 as per the power ministry.

In renewable rich states, the share of variable green energy in electricity generation is already above 15 percent, and when such a number exceeds the total installed capacity, it will put considerable stress on the national grid. This will require the power sector to adopt innovative technologies and solutions to enhance the quality and support in a reliable power supply. Smart grids can reduce peak loads, improve security, increase integration of renewable, lower operation costs, and allow users to interact with the grid by using two-way communication. Going ahead, the industry will aim towards the application of innovations across the value chain, which will include digitization of grid operations, smart grids, energy efficiency intervention and more.

Further, the role of energy storage system solutions will also witness a rise in enabling renewable energy penetration without overreliance on the transmission corridor. It is expected that by 2021 the prices of energy storage system solutions will see a reduction. This will further proceed with BESS prices declining witnessing a major reduction in next 2-3 years making them a cost economical solution. If allowed to be a regulatory asset for DISCOMs, energy storage system solutions can help them to recover the cost from the customers.

What is that one recent breakthrough policy decision that will drive the growth of electrical equipment industry in India?
The growth of the power sector drives the electrical equipment industry, which is expected to be around $ 100 million in 2022. India has witnessed active growth in the power industry with rapid urbanization and government initiatives. The government this year in the budget allotted Rs 22,000 crore towards the power and renewable sector. Renewable energy is offering immense opportunities for the manufacturing industry in leveraging new innovative technologies and solutions. The government’s “Make in India” initiative to build a “Self Reliant India” towards “Vocal For Local” vision will boost the domestic industry. The market is preparing to meet current and future demand for power and other sectors of the economy. The aim is to make India a country of choice for the production of electrical equipment balancing both export and imports.

What will drive the growth of your business in India beyond 2020?
At Delta Electronics India, our strength is our commitment to provide innovative clean and energy-efficient solutions for a better tomorrow. Being a progressive company, we preempt the market demand early and thus supporting the industry with our Renewable Energy Solutions portfolio offering products and solutions that can strengthen the power infrastructure with a vision of Delta Powering Green Energy. The growing role of renewable energy, is putting challenges for the grid with a high penetration level of DER (Distributed Energy Resources) while functioning with a solar inverter. Addressing this issue Delta Solar Inverter Solutions offers Smart Inverters enabling smart and cost-effective designs for industrial and small utility-scale PV power plant. It can support in maximizing energy yield even in the challenging landscapes and locations. Smart inverter work independently that can result in a positive impact on the implemented residential sector as well as the national grid. They offer high redundancy through a distributed AC architecture that reduces system cost and improves operations and maintenance aspects. They can support the grid operator in providing reactive power in both day and night, intelligent and flexible PV plant regulation with Power Plant Controller and communication interface integrated into the inverter. Delta’s SMART inverters, with their robust design, offer maximum flexibility for project-specific over sizing. We have been partnering with various solar power projects and have installed our Solar Inverters in major airports, railways, government institutions, public and private sectors, educational institutes, and many more across India.

Despite challenges, how is your company turning the tide in its favour?
At Delta, we believe with the right learning and technology, the crisis can convert into an opportunity. Renewable energy infrastructure can play a vital role in driving the post-COVID economy. The sector can support in improving energy security, reduce carbon emission, and attain sustainability goals as the power sector has witnessed a shift in capacity addition from traditional power sources to renewable sources. With a focus to decarbonize the supply of electricity, several governments and utilities are aiming to increase the role of renewable energy in the energy mix.

Thus we see a huge potential in the renewable energy infrastructure where we are supporting to cater towards the changing needs of industry with our portfolio of innovative technology and energy-efficient solutions.

Similarly, there are many technology adoptions that the industries are planning to explore like IoT enabled solutions, AI, cloud computing, and more where we are supporting by offering integrated products and solutions that can help businesses and industries as they proceed towards restoring the new normal.

With situation getting stabilized, the demand for coal and oil will be restored but the growth will be witnessed in renewable energy which presents an opportunity to increase the role of green power that can be cheaper and support meeting the current demand.
Amit Gupta, Business Head – Energy Infrastructure Solutions, Delta Electronics India

For more details,
visit: www.deltaelectronicsindia.com