The power sector which is crucial to push growth and achieve the targets will become even more important in the New Year to facilitate economic recovery.
The New Year-2022 is at the door, stimulating hopes and aspirations across the sectors. After successfully dealing with numerous challenges that engulfed 2021, the sectors have shown positive signs of recovery and they are on the path of continuous rise.
The power sector which is crucial to push growth and achieve the targets will become even more important in the New Year to facilitate economic recovery. The sector made significant progress in 2021, but there are challenges- enhancing green energy cover ahead, promising reliability and resilience, security and cost cut- to deal with in the New Year.
In 2022, the Indian power sector will have to find solutions for the problems like power cuts, financial losses, swift technological up-gradation and cost cuts. The advent of state-of-the-art technologies has empowered all sectors to realise their potentials while enhancing the comfort of the end consumers.
The need to harness the power of technologies has been underlined by the pandemic. The power sector will have to upgrade itself with the technology to ensure decarbonisation, boost digitalisation, and decentralisation. These objectives will encourage some trends in the sector in 2022.
Sustainable Energy
India strives to increase its green energy production as per the Paris climate deal; it is committed to raising its contribution to global green energy generation from the current 25 per cent to 40 per cent by 2030. On the other hand, the government has its own target of achieving 50 per cent share of energy from non-fossil fuels and 500 GW of renewable energy by 2030.
Also, it has to achieve the target of 100GW solar energy generation in 2022. All these targets will fuel the growth of clean energy generation. The government is providing all the incentives to the power sector to ensure sustainable production through one or another scheme such as UDAY Scheme, PM KUSUM, Solar Rooftop Programme and others.
Technological Up-gradation/Digitisation
The cutting-edge technologies of the day have the potential to meet energy demand and push sustainability. The penetration of the internet has augmented the up-gradation of every sector and the power sector is also embracing the changes. 5G and cloud-based technology can be harnessed best to enhance the efficiency of the sector.
Data collection from smart meters and other tools can be utilised for analysis and decision-making.
Private Sector Participation
The government is firm to promote the participation of private players in the energy sector to promote its growth and meet the energy demand of the country. This is also intended to increase the liquidity in the sector and achieve the ambitious target of ‘Atma Nirbhar Bharat’.
This will attract investment from across the globe to the sector. To encourage solar energy generation, the government has allowed 100 per cent FDI in the solar sector.
Electrification
Electrification of sectors such as transportation will be a major trend in 2022. It’s great to see that the adoption of e-vehicles is increasing by the day with big private players joining the market with their state-of-the-art products. In 2022, electrification in various segments will attract more investment.
It will be vital to develop the infrastructure required for the growth of electrification and create a favourable ecosystem.
Energy Storage
Energy storage and mitigation will be a great trend in 2022. The energy storage business has evolved to a great extent. With continuous research and innovation, the industry will come up with new-age equipment that will use less energy for maximum benefits. A set of technological solutions will facilitate the move that will not only save energy but also costs.
Apart from that, it has the potential to integrate energy sources and reduce environmental impacts. Energy storage methods such as batteries, thermal, mechanical, pumped hydro, hydrogen will flourish in 2022.
(The writer is Founder and Director at Vensor Electricals Pvt. Ltd)