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By Aayushi Sharma
Recently, the Union Cabinet approved an MoU signed between India and USAID to aid the Indian Railways in achieving net-zero carbon emission by 2030.
Duration of MoU: The Memorandum of Understanding (MoU) will remain in effect for five years from June 14, 2023, or until the conclusion of the South Asia Regional Energy Partnership (SAREP), whichever period is shorter.
What does the MoU facilitate?
The signed memorandum of understanding (MoU) targets supporting Indian Railways in attaining Net Zero Carbon Emission (NZCE) by 2030. The initiative focuses on diminishing dependence on imported fuels such as Diesel and Coal while advocating for the implementation of Renewable Energy (RE) plants. This strategic approach not only aligns with India’s sustainability goals but also fastens the advancement of renewable energy technology in the country. Moreover, the MoU anticipates increasing the development of a local ecosystem, thereby providing impetus to local product development. By prioritizing environmentally friendly practices and local innovation, the agreement aims to create a more sustainable and self-sufficient railway system in India.
The MoU also supports the modernization of utilities, the adoption of advanced energy solutions and systems, regional energy and market integration, private sector involvement, and engagement through training, seminars, and workshops focused on specific technology areas like Renewable Energy and energy efficiency. Additionally, it facilitates various interactions for knowledge sharing.
The memorandum of understanding (MoU) aims to assist Indian Railways in reaching its goal of achieving Net Zero Carbon Emission (NZCE) by 2030. By reducing reliance on imported fuels like Diesel and Coal and promoting the deployment of Renewable Energy (RE) plants, this initiative will contribute to the growth of renewable energy technology in India. Additionally, it is expected to foster the development of a local ecosystem, consequently boosting local product development.
What are other terms and conditions of the MoU?
Either party can formally request in writing a revision, modification, or amendment to any or all parts of this Memorandum of Understanding (MoU). Upon approval by the participants, any such changes will become an integral part of the updated MoU and take effect on a date determined by the participants.
It’s crucial to note that this MoU does not constitute a financial obligation or commitment of any kind and is non-binding. A spokesperson for the railways clarified that it doesn’t involve any financial commitment from Indian Railways.
Indian Railways has also entered into another MoU with the Confederation of Indian Industry (CII) to decrease energy and water consumption, consequently reducing Greenhouse Gas emissions. The MoU between Railways and CII was renewed for the third consecutive term on January 4.
The railway spokesperson also highlighted that enhancing energy efficiency in manufacturing facilities and railway workshops has led to substantial benefits, including energy savings of 210 lakh kWh, monetary savings of ₹16 crores, and a notable reduction in greenhouse gas emissions, approximately 18,000 tons of CO2.
What are the past development efforts between India and the US in the renewable energy sector? Were they successful?
Repowering of old turbines
The Ministry of New & Renewable Energy (MNRE) and USAID conducted feasibility studies for repowering existing sites in Gujarat, Maharashtra, and Tamil Nadu. Repowering existing wind sites with larger and newer turbines can improve annual electricity generation by two to four times, according to the micrositing of chosen locations.
To facilitate the large-scale repowering of wind capacity valued at over 10,000 megawatts, the programme created the framework for a policy, which included project selection criteria, an incentives framework that included compensation for current owners, and business models for repowering. The Ministry of New and Renewable Energy (MNRE), Government of India, received the recommendations for creating a policy and a scheme from the programme.
Solar rooftop projects
MNRE-USAID SAREP played a crucial role in aiding Indian Railways with the design of bids and obtaining open access connectivity for a 14-MW solar rooftop initiative at their Modern Coach Factory (MCF) in Raebareli. MCF, as an open access customer, already hosts a 3 MW solar plant on-site. SAREP’s support introduced a novel setup for the Railways, enabling electricity generated by the solar rooftop facility to be integrated into the transmission network. This power can then be utilized by various Indian Railways facilities at different locations within the state. Additionally, SAREP assisted in securing approvals for grid connectivity and increasing the open access limit from state authorities. The success of this endeavor has prompted Indian Railways to consider replicating this model at other similar sites.
Pumped Hydro Energy Storage (PHES)
Pumped Hydro Energy Storage (PHES) stands as a proven and effective method for energy storage, presenting a significant opportunity to enhance India’s energy security and transition toward a more cost-effective, low-carbon electricity market with a need for flexible, dispatchable, and peak power capacity. The USAID’s SAREP is actively providing technical support to the Central Electricity Authority (CEA) to encourage the adoption of Pumped Hydro Energy Storage (PHES) in India. SAREP is in the process of creating a tool to assess the attractiveness of PHES sites, allowing for a comparative analysis and identification of a pool of promising sites. This tool will incorporate technical and economic parameters to rank the sites. The potential for PHES extends to neighboring countries like Nepal, Bhutan, and Sri Lanka. Once the tool is developed, it can also prove beneficial for these countries.
Green hydrogen ecosystem
USAID initiated the provision of technical support to National Thermal Power Corporation Renewable Energy Limited (NTPC-REL) to conduct a techno-commercial feasibility study and design a tender for a green ammonia plant with a daily capacity of 50 tons at the National Fertilizers Limited (NFL) site in Punjab. The envisioned facility aims to produce green ammonia locally, utilizing 100% renewable electricity and seamlessly integrating with NFL’s existing ammonia plant. The study comprehensively addresses the technical aspects of ammonia generation and the storage infrastructure best suited for the specific site. This support from USAID will assist NTPC-REL in evaluating the technical and commercial viability of such projects, as well as contribute to the strategic planning of future initiatives centered around green hydrogen.
Initial References:
https://www.energy.gov/sites/default/files/2022-10/SCEP%20RE%20Pillar%20FINAL.pdf
Banner Image:
https://www.pexels.com/photo/train-near-platform-12120331/
Other Images:
https://www.pexels.com/photo/wind-turbines-during-golden-hour-2673471/
