They have created a model which shows an actionable and clear roadmap to achieve the 100% Green Energy target by increasing it from the current 25% to 100%. This will help curb the cost from $88 /MWh in 2020, to $46 in 2050. This model could also produce a substantial revenue worth $39.8 billion from hydrogen production.
India’s power demands are forecasted to double by 2030 and this flexible 100% system provides significant excess power level demands. India has been on top of its game as far as green energy and converting from conventional to green energy is concerned.
The ‘Front-loading Net Zero’ report steps to decarbonise its power system are as follow:
1. set ambitious clean energy targets over longer-term time horizons to attract investors.
2. Increase climate regulation for companies, including mandating consumers and power producers to meet a certain percentage of their requirements from renewable sources.
3. Strengthen flexibility solutions, such as thermal balancing power plants and battery storage, that can raise the share of renewables.
4. Launch an incentive programme for the production of electrolysers (as capital costs are responsible for 30% of the cost of green hydrogen) and create new demand centres equipped to cost-effectively develop and transport green hydrogen.
India has a target to install 450 GW of renewable energy capacity by 2030. In August this year, the country’s installed renewable energy capacity crossed the 100 GW milestone. India’s renewable energy capacity is now the fourth largest in the world. It stands fifth in solar power installation and fourth in installed wind power capacity.
India is blessed with more than 300 sunny days a year. The modelling shows that by 2050, thermal balancing power plants will have a relatively small, but crucial, backup role, providing 1.1% of electricity generation.
Reference: Wartsila Report