E XCHANGE V ISITS & R ESEARCH C OLLABORATION Enabling Energy - PowerPoint PPT Presentation

E XCHANGE V ISITS & R ESEARCH C OLLABORATION “Enabling Energy Transition towards Low - Carbon Pathways: TERI’s Activities” 27 th July, 2018 | Lawrence Berkeley National Laboratory (Berkeley Lab) Creating Innovative Solutions for a Sustainable Future Exchange Visits (to US Labs) Supported By: Dr. Shashank Vyas, Associate Fellow & Er. Alekhya Datta, Fellow Electricity & Fuels Division (EFD), TERI

E LECTRICITY D EMAND IN I NDIA BY 2030 Sector-wise demand of Electricity (in TWh) 2500 2000 1500 Commercial Agriculture Industrial 1000 Residential 500 0 2018 2022 2027 2030 Source: TERI Analysis Creating Innovative 2 Solutions for a Sustainable Future

I NDIA ’ S S OLAR T RANSITION / E LECTRICITY T RANSITION Price/ Tariff Trends 1200 12 1000 10 800 8 INR/ kWh $/kWh 600 6 400 4 200 2 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Solar in INR/kWh Coal in INR/kWh Cost of LiB in $/kWh Source-wise Power Generation in India (By 2030) Power Generation in India (By 2030) 3000 3000 Bio-Mass 2500 2500 Small Hydro Solar 2000 2000 in TWh in TWh Wind Renewable Energy 1500 1500 Gas Conventional Energy Nuclear 1000 1000 Hydro 500 500 Diesel 0 Coal 0 2018 2022 2027 2030 Source: TERI Analysis 2018 2022 2027 2030 Creating Innovative 3 Solutions for a Sustainable Future

C ASE FOR T RANSPORT E LECTRIFICATION AC Electric Bus total cost bid without Subsidy INR/ km Cost of e-Bus discovered in competitive bidding lower than of Diesel Bus today: under OP Model 12 9.9 9.9 Running costs of E-Buses (AC) through competetive bidding INR million per Bus 10 8.5 8.5 7.7 GCC Model* 80 OP Model* 8 70 70 6 57 4 60 48 48 2 50 INR/ km 41 0 37 36 36 40 35 33 Kolkata Indore Lucknow Jammu Guwahati 29 30 2-W Running Cost (INR/km) of TVS 20 Scooty Pep vs. Hero Maxi Electric 1.67 10 0 0.83 0.74 0.66 0.66 Diesel Bus = INR 60-80/ km; Electric Bus (AC) = INR 30-55/ km (without Subsidy) Note: Daily distance travelled = 170-200 kms. Li-ion with Li-ion without Lead Acid with Lead Acid Petrol variant Cost includes capita repayment at 10% interest, electricity, O&M costs & Subsidy subsidy Subsidy without battery replacement for purchased buses in year 8. FAME subsidy is Subsidy excluded in these estimates. Note: Daily distance travelled = 40 kms; Battery replacement *Gross Cost Contract (GCC) & Outright Purchase (OP) costs are included. Source: TERI Analysis Creating Innovative 4 Solutions for a Sustainable Future

E LECTRIFICATION OF THE I NDUSTRY A PPLICATIONS Switch from thermal heating to Case study of a typical forging furnace: electricity in industrial processes: Switch over from furnace oil (FO) firing to Induction billet heater, Fuel switching can be explored in  Capacity of FO furnace 400 kg. per shift a number of other sectors e.g. foundries, forging, secondary Capacity of induction 45 kW steel, chemicals, textiles, food billet heater processing, etc. Investment INR 22 lacs. Switch over would depend upon  availability of suitable Avoided FO 93 kl/ Year technologies (including detailed consumption design & engineering solutions), Electricity 1,78,000 kWh per comparative prices of fuels, consumption with Year finance etc. induction heater GHG reduction 270 t CO 2 / Year Source: TERI Analysis potential Creating Innovative 5 Solutions for a Sustainable Future

N EED FOR T RANSITIONING TO L OW C ARBON I NDUSTRIES  Many large industry sub-sectors undertaking steps to reduce their energy intensity:  Few are already equivalent to global standards e.g., cement, fertilizer  Opportunities to further reduce Specific Energy Consumption (SEC) levels exist in several units in both large industries and MSMEs;  A major challenge is to transit from fossil fuels to low carbon energy sources for thermal (process) energy requirements in ‘Hard -to- abate’ sectors such as iron & steel, cement, etc.  No commercially available zero carbon technologies globally; few are under development  Need for long-term collaborative R&D with global players  Huge capital investment and long gestation periods Creating Innovative 6 Solutions for a Sustainable Future

P OSSIBLE STEPS TOWARDS L OW / Z ERO C ARBON E MISSIONS – C EMENT I NDUSTRY 1. Improve efficiency through modernisation and adoption of EE measures – Reaching global best levels  Reduce SEC-Thermal : From 725 kcal/ kg clinker to 660 kcal/ kg clinker  Reduce SEC-Electrical : From 80 kWh/ t cement to 65 kWh/ t cement 2. Meet all electrical energy needs through RE sources 3. Meet thermal energy requirements for combustion through electric route (fully/ partially) – to be explored 4. Remaining CO 2 emissions only from calcination Alternate routes : 1. Carbon Capture, Utilization, and Storage (CCUS) 2. Explore/ Research and switch over to alternate materials that avoid CO 2 generation (e.g., Timber for housing, new chemistry, other options ??) Creating Innovative 7 Solutions for a Sustainable Future

P OSSIBLE STEPS TOWARDS L OW / Z ERO C ARBON E MISSIONS – I RON & S TEEL I NDUSTRY 1. Improve efficiency through modernisation and adoption of EE measures – reaching global best levels  Blast Furnace (BF)/ Basic Oxygen Furnace (BOF) Route - Reaching to SEC level of 5.5 Gcal/ tcs (giga calories per tonne of crude steel)  Electric Arc Furnace (EAF)/ Induction Furnace (IF) route through RE sources – Increase production to the extent possible; increase circularity 2. Use of hydrogen for iron ore reduction as a substitute for coke/coal Hydrogen through biomass route or electrolysis of water • 3. Meet thermal energy requirement through RE based electricity and/or, off-gases generated in the process Creating Innovative 8 Solutions for a Sustainable Future

F REIGHT T RANSPORT Technological choices are not yet clear: Creating Innovative 9 Solutions for a Sustainable Future

P ROMOTING E NERGY E FFICIENCY Innovative business models need to promote:  Energy efficient appliances at Household-level, mainly Air Conditioners;  Industrial energy efficiency;  Energy efficient Electric Vehicles (including Charging Infrastructure)  Energy efficient Pump-sets (including Solar pumps) for Agricultural applications, and  Building energy efficiency (promoting ECBC & GRIHA) Creating Innovative 10 Solutions for a Sustainable Future

C ONCLUSION & W AY F ORWARD  Decarbonization of Indian electricity sector is now inevitable;  Promoting energy efficiency through innovative Business Models for large scale adoption of energy efficient technologies & practices;  Electrification of Buses & Two-Wheelers: Challenges – Charging Infrastructure;  The techno-economic viability of electric heating vis-à-vis fossil fuel based heating should be explored in selected energy intensive industry processes, and  Decarbonizing ‘hard -to- abate’ sectors such as Steel / Iron & Cement – Research on technologies is needed. Creating Innovative 11 Solutions for a Sustainable Future