Enhancing Energy Efficiency and Renewable Energy in the future electricity system of Odisha, India

Sammanfattning: India ratified the Paris Agreement in 2015. The country’s Intended Nationally Determined Contributions includes reduction of emissions intensity by 33-35% in 2030 from the 2005 level and 40% of renewable energy share in the electricity mix by 2030. This study evaluated the future electricity system of Odisha, one of the states in India that is rich in mineral resources. It holds 26% of India’s coal reserves. While the current electricity system of Odisha comprises 95% of coal power generation, the state’s commitments in terms of climate goals and increasing the deployment of renewable energy sources (RES) (i.e., 3 GW by 2022) are aligned with the national goals. To encourage investment in RES and to reduce investment risks, Odisha has also set targets for renewable purchase obligations for utilities and captive consumers. They have to procure 15% of their total electricity consumption from RES (8% solar and 7% non-solar sources) by 2022. The electricity demand in the state is expected to increase due to increased economic growth and the goal to reach 100% energy access (24x7) to households. Besides, there is huge potential for energy savings in the current electricity system through improvement in energy efficiency in the end-use. The increase in electricity demand, high share of fossil in current electricity system, renewable energy target, climate goals and lack of study at the state level are the reasons to assess the future electricity system of Odisha. The study investigated the electricity system in Odisha to meet the increased electricity demand from 2018 until 2050. It estimates the technical, economic and environmental impacts of enhancing energy efficiency and renewable energy on future electricity system of Odisha by using the Long-range Energy Alternatives Planning System. Odisha’s future electricity system is assessed in four scenarios i.e. no new policies introduced in the future (BAU), high renewable energy share (HRE), improvement in energy efficiency (IEE) and a combination of renewable energy and energy efficiency (CER). The result shows that the energy requirements in the IEE scenario are 26% lower than in the BAU scenario, and the total costs are lower than HRE scenario by 34% and CER scenario by 10%. The CO2 emissions of the IEE scenario are higher than HRE scenario by 10% and CER by 23%. In the HRE scenario, the total costs are higher than BAU scenario by 8% and CER scenario by 26%. The CO2 emissions are lower than BAU by 45% and IEE by 25%. In the CER scenario, the costs are lower than BAU by 20% and HRE by 26%. The CO2 emissions are lower than BAU by 60%, IEE by 44% and HRE by 26%. The energy savings can be achieved by continuing the existing scheme Ujala for subsidised LEDs, extension of Perform Achieve Trade (reduction of specific energy consumption) scheme to medium and small industries. The renewable targets can be achieved through continuation of RPO which reduces the risk of new investors. Capacity auctions could bring down the solar and wind tariffs. The study demonstrate that the RPO for 2022 cannot be achieved with the target RE capacity. The gap must be fulfilled by either procuring renewable electricity from the regional grid or buy renewable energy certificates from the market.