ESI AND OTHER CURRENT AFFAIRS

LECTURE-13
RENEWABLE ENERGY
1. TABLE OF CONTENTS

1. Table of Contents............................................................................................................................ 0
2. NOTE1: ........................................................................................................................................... 2
3. New and Renewable Energy ........................................................................................................... 2
1) Promoting Green Energy Consumption ....................................................................................... 3
a) Electricity (Promoting Renewable Energy THrough Green Energy Open Access) Rules, 2022 notified (June 2022) .... 3
b) Power Sector Operation Corporation (POSOCO): ......................................................................................................... 4
c) Green Energy Open Access Portal launched by Ministry of Power (Nov 2022) ............................................................ 4
4. Solar Energy ................................................................................................................................... 4
1) JawarLal Nehru National Solar Mission (JNNSM) ......................................................................... 4
2) Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects ........................... 5
3) Grid Connected Rooftop SOlar Program ...................................................................................... 5
a) GharKeUper Solar is Super ............................................................................................................................................ 6

4) Pradhan Mantri Kisan Urja Suraksha Evan Uttham Mahabhiyan (PM Kusum) ............................. 6
a) Centre Does away with Bank Guarantee Clause for Solar Power generators under PM-KUSUM (May 2022) ............. 7

5) Other Initiatives in News Recently .............................................................................................. 7

a) Floating Solar Power Plant ............................................................................................................................................ 7
b) Organic Solar Cells (OSCs) ............................................................................................................................................. 7
c) Saral Index ..................................................................................................................................................................... 8
d) Suryamitra Scheme ....................................................................................................................................................... 8

5. Wind Energy ................................................................................................................................... 8

a) National Wind Mission .................................................................................................................................................. 8
b) Global Wind Report 2022.............................................................................................................................................. 8
6. Biofuels .......................................................................................................................................... 9
1) Generations of Biofuel (3 important) .......................................................................................... 9
2) Ethanol Blending....................................................................................................................... 10
3) Steps Taken to Promote Bio Fuels ............................................................................................. 11
a) National Policy on Biofuels, 2018................................................................................................................................ 11
b) Pradhan Mantri Ji-VAN (Jaiva Indhan Vatavaran Anukool Fasal Awashesh Nivaran) Yojana ...................................... 12

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 c) World Biofuel Day ....................................................................................................................................................... 13
4) National Bio-Energy Program .................................................................................................... 13
5) Biogas ....................................................................................................................................... 14
a) National Biogas and Manure Management Program (NBMMP)................................................................................. 14
b) Gobar Dhan Yojana ..................................................................................................................................................... 14
c) SATAT Initiative - to promote compressed Bio-Gas as an alternative, Green Transparent Fuel................................. 14
d) National Mission on Use of Biomass in coal based thermal power plant (May 2021: PIB)......................................... 15
7. Hydrogen Fuel Cell ........................................................................................................................ 15
1) Fuel Cell Electric Vehicle ........................................................................................................... 16
2) Types of Electric Vehicles .......................................................................................................... 16
3) Various Types of Hydrogen ....................................................................................................... 17
4) National Green Hydrogen Mission ............................................................................................ 17
5) Electrolyzers ............................................................................................................................. 18
8. Coal Gasification and Coal Liquefaction – Converts coal into cleaner fuels .................................... 18
1) Coal Gasification ....................................................................................................................... 18
2) Coal Liquefaction: ..................................................................................................................... 19

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2. NOTE1:
Here, we are not only covering ESI, but are also ensuring the other CA updates which may have taken place over
the last one year in these areas are properly covered.

3. NEW AND RENEWABLE ENERGY

­ Non-conventional energy sources refer to renewable energy sources which are replenishable at a rate faster than
it is consumed i.e., they don't get depleted when used. These sources are also much less hazardous to
environment compared to conventional sources of energy.
­ Popular Sources of Non-Conventional Energy Sources are:
i. Solar Energy
ii. Wind Energy
iii. Tidal Energy
iv. Geothermal Energy
v. Hydropower
vi. Biomass Energy
vii. Fuel Cell

­ Total Installed Power Capacity of utilities and captive power plants (industries having demand of 1 MW and
above) was 482.2 GW on 31st march 2022 as compared to 460.7 GW on 31st March 2021, up by 4.7%.

­ Thermal Sources of Energy make up the largest (59.1%) share of total installed capacity in utilities, followed by
renewable energy resources (27.5%) and Hydro with 11.7%.

­ As per government sources (if we combine large hydro and other renewables), as on Feb 2022, a total of 152.90
GW of renewable energy capacity projects have been installed in India. It comprises of Solar (50.78 GW), Wind
(40.13 GW), Bio-Power (10.63 GW), Small Hydro (4.84 GW), and large Hydro (46.52 GW).

­ India's Renewable Energy Targets

▫ In 2015, India had set a installed renewable energy capacity target of 175 GW by 2022. This included:
• 100 GW of Solar Energy Capacity
• 60 GW of Wind Energy
• 10 GW from biomass
• 5 GW from small hydro
▫ But, at COP26, India has set up a target of 450 GW installed RE capacity by 2030.

­ India's NDC and Renewable Energy:

▫ While the target was to achieve 40 per cent of the installed electric capacity from non-fossil fuel sources
by 2030 in the initial NDC submitted in 2015.

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 ▫ India is now striving to achieve the target of 50 per cent cumulative electric power installed capacity
from non-fossil fuel-based energy resources by 2030, in line with updated NDCs

­ Projected optimal mix of installed capacity for 2029-30 by Central Electricity Authority (CEA)

1) PROMOTING GREEN ENERGY CONSUMPTION

A) ELECTRICITY (PROMOTING RENEWABLE ENERGY THROUGH GREEN ENERGY OPEN ACCESS) RULES,
2022 NOTIFIED (JUNE 2022)

­ Ministry: Ministry of Power

­ The rules' objective is to ensure access to affordable, reliable, sustainable and green energy for all.
­ Important Provisions:
» Reduction of Open Access Transaction limit from 1 MW to 100 Kw.
» Appropriate provision for cross subsidy surcharge, additional surcharge, standby charge will
incentivize common consumers to get Green power at reasonable price.
­ Salient Features of Green Energy Open Access are as follows:
» These rules are notified for promoting generation, purchase and consumption of green energy
including the energy from Waste-to-Energy plants.
» The Green Open Access is allowed to any consumer and the limit of Open Access Transaction has
been reduced from 1 MW to 100 kW for green energy, to enable small consumers also to purchase
renewable power through open access.
» Consumers are entitled to demand supply of Green Power from Discoms. Discoms would be
obligated to procure and supply green power to eligible consumers.
» These Rules will also streamline the overall approval process for granting open access.
▫ Time bound processing by bringing uniformity and transparency in the application as well as
approval of open access through a national portal has been mandated.
▫ Approval for Green Open Access is to be granted in 15 days or else it will be deemed to have
been granted.
» Commercial and Industrial consumers are allowed to purchase green power on voluntarily basis.
» Provide certainty on open access charges to be levied on Green Energy Open Access Consumers
which includes transmission charges, wheeling charges, cross-subsidy surcharge and standby

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 charges. Cap on increasing of cross-subsidy surcharge as well as the removal of additional surcharge,
incentivize the consumers to go green.
» There shall be a uniform Renewable Purchase Obligation (RPO), on all obligated entities in area of
a distribution licensees. Green Hydrogen/Green Ammonia has also been included for fulfilment of its
RPO.
» Consumers will be given Green Certificates if they consume green power

­ What will be the cost of Green Energy?

» As per the Electricity Act 2003, the tariff is determined by the Appropriate Commission.
• Accordingly, the tariff for the green energy shall be determined by Appropriate Commission
and shall comprise of the average pooled power purchase cost of the renewable energy,
cross-subsidy charges, if any, and service charges covering the prudent cost of the
distribution licensee for providing green energy to the consumers.

B) POWER SECTOR OPERATION CORPORATION (POSOCO):

­ Ministry of Power vide notification dated 08th July, 2022 notified Power System Operation Corporation
(POSOCO) as Central Nodal Agency to set up and operate a single window green energy open access system
for renewable energy under these Rules.
§ National Portal will serve the consumers from all over the country.

C) GREEN ENERGY OPEN ACCESS PORTAL LAUNCHED BY MINISTRY OF POWER (NOV 2022)
­ The portal can be accessed at: https://greenopenaccess.in/ for processing of applications related to green
energy open access by the stakeholders including open access participants, traders, power exchanges,
national/regional/state load despatch centres, central/state transmission utilities.
­ The portal is allowed to any consumer with load limit reduced from 1000 Kw to 100 Kw.
­ The portal will allow consumers to access green power easily through transparent procedure.

4. SOLAR ENERGY
­ Government has an ambitious target of 1,00GW solar power generation by 2022. This is a steep goal and
achieving it will require synchronized efforts on all fronts including financial, technical and political fronts.

­ Advantages of Solar Energy

§ Renewable Energy Advantages (as discussed in previous section)
§ Solar's advantage over other renewable energy (available during office hours; longer life equipment;
low running cost; India's geographical suitability)
§ Solar Energy is becoming more and more competitive.

1) JAWARLAL NEHRU NATIONAL SOLAR MISSION (JNNSM)

- It is the most ambitious program which aims to promote solar energy for power sector with an aim of making levelized
cost of solar energy competent with coal/gas based power generation.
▫ It was launched in 2009 with a target for Grid Connected Solar Projects of 20,000 MW by 2022. In 2015, this
target was revised to 100 GW by 2022 and in Aug 2021, the government has set a solar target of 300 GW by
2030 (450 GW of RE by 2030)

▫ The target principally comprises of 40 GW of rooftop and 60 GW through Large and Medium scale Grid
Connected Solar Power Projects.

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 ▫ Currently (As of April 2022), India ranks fifth after China, USA, Japan, and Germany in terms of installed solar
power capacity.

▫ Progress compared to target:

§ About 27% of India's 100 GW solar target remained unmet. It was mostly due to a shortfall of the
rooftop solar which is estimated to have a shortfall of 25 GW in the 40 GW target

2) SCHEME FOR DEVELOPMENT OF SOLAR PARKS AND ULTRA MEGA SOLAR POWER
PROJECTS

­ Ministry: MNRE
­ Conception idea
§ The scheme has been conceived on the lines of "Charanka Solar Park" in Gujarat which is a first-of-its-
kind large scale Solar Park in India with contagious development of land and transmission capacity.

­ Objective
§ Huge impetus to solar energy generation by acting as flagship demonstration facility to encourage
project developers and investors, prompting other facilities of similar nature, triggering economies of
scale for cost reductions, technical improvement and achieving large scale reduction in GHG emissions.

­ Goals/Program targets
▫ It envisaged supporting states in setting up atleast 50 solar parks ( capacity 500 MW and above) and Ultra
Mega Solar Power Projects targeting over 40,000 MW of solar power installed capacity within a span of
5 years starting from 2014-15.

­ Provisions
▫ The solar parks provide solar power developers with a plug and play model, by facilitating suitable
developed land with all clearances, transmission system, water access, road connectivity communication
network, etc.

­ All states and UTs are eligible for benefits under the scheme.

­ Central Financial Assistance

▫ (CFA) of Rs 25 Lakh per solar park for Detailed Project Report Preparation of the Solar Park, conducting
surveys etc.
▫ Besides this, CFA of up to Rs 20 Lakh per MW or 30% of the project cost, including Grid-connectivity cost,
whichever is lower, is also provided on achieving the prescribed milestone in the scheme.
­ Progress
▫ As on 30th Sep 2022, the government has sanctioned the entire target capacity of 40 GW for the
development of 59 Solar Parks in 16 states.

3) GRID CONNECTED ROOFTOP SOLAR PROGRAM

­ Objective: Achieving cumulative capacity of 40,000 MW from Rooftop Solar (RTS) Projects by the year 2022
­ MNRE is implementing the program for installation of grid connected roof top solar systems from 1 KWp to 500
KWp capacity in residential, social, Government/PSU and institutional sectors

­ Under this, CFA of upto 30% of benchmark is provided in General category states and upto 70% of the benchmark
cost in specialized category states.

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 ▫ By an amendment in 2016, the commercial and industrial establishment in the private sector were
excluded from obtaining CFA.

­ Target Missed:
▫ Short fall of 25 GW out of 40 GW target.

­ why?
▫ In the early years, it was due to lack of consumer awareness, inconsistent policy frameworks of the
Centre/State governments and financing. Recently, however, there has been sharp rise in rooftop solar
installations. This is due to falling tech cost, increasing grid tariffs, rising consumer awareness and
growing need for cutting energy cost.
▫ Factor impending rooftop solar:
§ Supply chain disruption due to COVID-19 pandemic
§ Regulatory roadblocks
§ Limits to net-metering (of paying users who give back surplus electricity to the grid)
§ Taxes on imported cells or modules
§ Financing issues etc.
­ Future:
▫ Rooftop solar adoption is expected to increase as land and grid connectivity for utility solar projects are
expected to be hard to come by.

A) GHARKEUPER SOLAR IS SUPER

­ It is a rooftop solar awareness campaign launched by MNRE.
­ It is a bid to mobilize public support for installing solar rooftop panels.

4) PRADHAN MANTRI KISAN URJA SURAKSHA EVAN UTTHAM MAHABHIYAN (PM KUSUM)

­ Why in news?
» Centre does away with bank guarantee clause for solar power generators under PM-KUSUM (May 2022)

­ About PM KUSUM
» It is an ambitious scheme aims at providing water and energy security to farmers and enhancing their
income by making Annadata also a Urjadata. It aims to de-dieselise the farm sector and generate
additional income for farmers by producing solar power.

» The Scheme consists of three components:

§ Component A: 10,000 MW of Decentralized Ground Mounted Grid Connected Renewable
Power Plants of individual plant size up to 2 MW.
§ Component B: Installation of 20 lakh standalone Solar Powered Agriculture Pumps of individual
pump capacity up to 7.5 HP.
§ Component C: Solarisation of 10 Lakh Grid-connected Agriculture Pumps of individual pump
capacity up to 7.5 HP

» Targets Missed:
§ In Dec 2021, the International Energy Agency (IEA) said PM-KUSUM is likely to fall short of its
target of setting up 31 GW of solar power by 2022 due to financing and implementation
challenges. It expects only 10 GW, or roughly 1/3rd capacity, of the total to come online by 2021-
26.

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 A) CENTRE DOES AWAY WITH BANK GUARANTEE CLAUSE FOR SOLAR POWER GENERATORS UNDER
PM-KUSUM (MAY 2022)
­ The Ministry has done away with the requirement of submitting a bank guarantee for solarization of
agriculture feeders under component-C, which is the equivalent to the Central Financial Assistance (CFA) for
the said project.
­ The MNRE has removed the clause of providing performance bank guarantee (PBG) of Rs 5 lakh per MW for
Solar Power generators.
­ The move is aimed at improving the poor performance.
­ Performance has been very poor so far.
§ In Component A, around 4,909 MW capacity has been sanctioned, and of this, just about
42.75 MW capacity, or less than 1%, has been installed till April 2022.
§ Component C, has been worst. By April 2022, the government sanctioned 76,150 individual
solar pumps, of which only 1,026 or around 1.3%, have been installed. The government has
also sanctioned 9,25,427 feeder level solar pumps, but no pump has been installed so far.

5) OTHER INITIATIVES IN NEWS RECENTLY

A) FLOATING SOLAR POWER PLANT

­ It is a new and emerging concept in India. In this system, the solar photo voltaic panels are installed on
waterbodies such as lakes and ponds
­ Other advantages
» No land acquisition requirement
» Easy plain terrain which is shadow free
» Solar power panels accumulates less dust
» Less evaporation of water
» Ambient temperature ensure efficient utilization of solar power plant

­ Ramagundam Floating Solar Project

▫ Why in news?
§ NTPC has commissioned India's largest floating solar power project at NTPC Ramagundam
Telangana.
▫ Details
§ The project is of 100 MW capacity.
§ It is endowed with advanced technology and environmentally clean features

B) ORGANIC SOLAR CELLS (OSCS)

­ Why in news?
▫ Organic Solar Cells developed on steel substrate can convert a steel roof into an energy producing
device (Dec 2022: Source: PIB)

­ About Organic Solar Cells

▫ Organic solar cells (OSCs) are a type of solar cell that use organic materials, typically polymers, as
the active layer to convert sunlight into electricity. OSCs are lightweight, flexible, and can be
produced using low-cost and scalable manufacturing techniques, making them a promising
alternative to traditional inorganic solar cells.

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 ­ Researchers at IIT Kanpur have developed organic solar cell devices consisting of a blend of organic polymer
PTB7 as a donor and a PCBM as an acceptor.
▫ An organic solar cell consisting of a combination of an organic polymer and PCBM (an organic
semiconductor) developed on steel substrates can potentially convert a steel roof into an energy
producing device with great efficiency than those currently available in the market.
▫ The devices were fabricated on opaque steel substrate with MoO3/Au/MoO3 top electrode.

C) SARAL INDEX
SARAL Index (The State Rooftop Solar Attractiveness Index) was launched by Ministry of New and Renewable
Energy in Aug 2019.
­ The index has been designed by MNRE, Shakti Sustainable Energy Foundation (SSEF), ASSOCHAM, and
Ernst and Young.
­ The index aims to incentivize rooftop solar by creating healthy competition, among the states. It is the
first of its kind index, which provides comprehensive overview of state level measures adopted to facilitate
rooftop solar deployment.
­ It also helps other states to learn and adopt the best practices followed by top performing states.
­ Five key parameters used:
▫ Robustness of policy framework.
▫ Implementation environment
▫ Investment Climate
▫ Consumer Experience
▫ Business Ecosystem

D) SURYAMITRA SCHEME
Focus on skill development of workforce : "Suryamitra Scheme" launched in May 2015. To create 50,000 trained
personnel within a period of five years

5. WIND ENERGY
­ Current Wind Energy Situation in India
▫ Globally, India has the fourth highest installed capacity to generate wind energy. As of Sep 2022, India's total
installed capacity is 41.67 GW.
▫ But, as per National Institute of Wind Energy (NIWE) in Chennai, India has a much higher wind power potential.
At a hub height of 120 meters, the potential is of 602 GW of onshore and 100 GW of fixed and floating offshore.
A very remarkable fact is that half of the potential is located in wastelands.
▫ Targets:
» India's renewable energy target is of 175 GW by 2022. This goal includes achieving 60 GW of onshore and 5
GW of offshore capacity of wind energy.

A) NATIONAL WIND MISSION

­ Launched in 2015 under NAPCC
­ Aims and Objective
» To achieve the target of 60 GW by 2022 with an investment of 10 lakh crore.
» Make India a global leader in wind power, by creating conditions conductive for its diffusion across the
country in a time bound manner.

B) GLOBAL WIND REPORT 2022

­ Published by the Global Wind Energy Council (GWEC).
­ New installations 93.6 GW in 2021. Total wind energy capacity (global): 837GW.
» Global Offshore wind market enjoyed its best year in 2021, with 21.1 GW commissioned.

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 » Global onshore wind market added 72.5 GW in 2021.
­ In India, more than 1.4 GW of wind was installed in 2021.
­ As per the report, the new offshore installations in 2022 are likely to decline 2019/20 levels, primarily due to
reduction in China. However, market growth is expected to regain momentum from 2023, eventually passing
the 30 GW mark in 2026.

6. BIOFUELS
­ Introduction
» Biofuel is a fuel that is produced through contemporary biological processes, such as agriculture and
anaerobic digestion, rather than fuel produced by geological processes such as those involved in the
formation of fossil fuels.
» They are made from recently grown biomass (plant or animal matter). They are renewable because the
source is continuously replenished.
▫ E.g., Biogas, bioethanol, biodiesel etc.
» Biogas is the biofuel produced through anaerobic digestion of organic waste.
» Bioethanol is an alcohol made by fermentation, mostly from carbohydrates produced in sugar or starch
crops such as corn, sugarcane, or sweet sorghum.
▫ Cellulosic biomass, derived from non-food sources, such as trees and grasses, is also being
developed as a feedstock for ethanol production.
▫ Ethanol can be used as a fuel for vehicles in its pure form, but it is usually used as a gasoline
additive to increase octane and improve vehicle emission

­ Capabilities
§ As of Feb 2022, installed capacity of grid connected biomass power projects stood at about 10.63 GW.

1) GENERATIONS OF BIOFUEL (3 IMPORTANT)

i. 1G Biofuel: They are produced directly from food crops such as wheat, sugar, vegetable oil and even
animal fat etc.
­ Advantages includes known simple tech, cost competitiveness with fossil fuels etc.
­ Criticisms include food vs fuel debate etc.
­ They are also known as conventional biofuels. Most common first generation bio fuels include:
§ Bio-diesel: Extraction of vegetable oils (both edible and non-edible), with or without
esterification, from seeds of plants like soybean, rape (canola) and sunflower.
§ Bio-Ethanol: Fermentation of simple sugar from sugar crops (sugarcane) or starch crops
(corn, wheat etc).
§ Bio-Gas: Anaerobic fermentation of organic waste and crop residue as energy crops.

ii. 2G Biofuels: Produced from non-food organic crops such as wood, organic waste, food crop waste and
specific biomass crops. It includes use of non-food-crops technologies like jatropha-based fuels.
­ The advantages include use of wasteland, less impact on food security.
­ There are some limitations including high capital cost, advanced conversion technologies etc.
­ One well known second-generation technology is Lignocellulosic processing which uses
forest material.

iii. 3G Biofuels: The source is based on improvements in the production of biomass.

­ They are produced from micro-organisms like algae

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 ­ Algae act as low cost, high-energy and entirely renewable feedstock. It has impressive
diversity and higher yield. Advantages include the ease of generating the biomass anywhere
where sunlight and carbon is present.
­ Third generation biofuel has the potential to be more sustainable and have a lower
environmental impact than first and second generation biofuels.
­ Some limitations include still developing tech, high technology cost, some poisonous algae
etc.

iv. 4th and 5th Generation Biofuels

A. Fourth Generation:
▫ It takes the advantage of biotechnology to engineer special crops such as algae (sometimes
called oilgae) for biomass production. The aim is to engineer microorganisms to produce
biofuels more efficiently, with higher yields, and with lower environmental impacts.

A. 5th Generation Biofuels

▫ They are known as electrofuels. They are produced from microbial synthesis using
renewable energy sources. In this process, micro-organisms use electricity as an energy
source to convert carbondioxide into liquid fuels, such as ethanol or butanol.

Note: 4th Generation and 5th Generation Biofuels are in the early stage of development.

2) ETHANOL BLENDING

­ Process of mixing ethanol with Petrol is called Ethanol blending. The mixture is called as Ethanol Fuel/ Gasohol
which is considered as a quasi-renewable energy.
­ In India, the practice of blending ethanol was started in 2001. Ethanol blending was first time mentioned in
the Auto Fuel Policy of 2003.
­ Benefits of Ethanol Blending
» Reduces vehicular emissions especially CO (Carbon Monoxides) emissions.
» It is cheaper than petrol as it is easier to manufacture.
» It reduces our import dependency.
• Trade balance, foreign exchange etc.
» Ethanol has higher octane rating than ethanol-free petrol
» In case of India Ethanol production can generate higher sugarcane prices for farmers.

­ Ethanol Blended Petrol (EBP) Program was launched by the Government in 2003, and was aimed at
promoting 5% blending of molasses-based ethanol with petrol, to promote the use of alternative and
environment friendly fuels, to reduce import dependency for energy requirements and to increase value
addition to Sugar industry enabling them to clear cane price arrears of farmers.

­ Currently, the Government has set 10% blending target for mixing ethanol with petrol by 2022 and 20%
blending target by 2030.

­ The Roadmap for ethanol Blending in India 2020-25: Released by PM Modi on 5th June 2021 i.e. on World
Environment Day.
▫ BIS specifications for E12 and E15 blending have also been notified on 2nd June 2021.
▫ Pilot Project of E100 dispensing from 3 locations at Pune was also launched by the PM.

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 ▫ Secretary, Department of Food and Public Distribution (DFPD) said that as a result of various
measures taken to address demand and supply side issues, it is likely that ethanol distillation
capacities in the country would be more than doubled by 2025 and we would be able to achieve 20%
blending target.

­ Central Financial Assistance (CFA) for biomass power projects includes installations from biomass
combustion, biomass gasification and bagasse co-generation.
­ Allowing conversion of surplus stock of rice with FCI and Maize to Ethanol.
§ In June 2021, central government allocated 78,000 tonnes of rice from FCI for ethanol production.

­ Cabinet approves Mechanism for procurement of ethanol by Public Sector Oil Marketing Companies (OMCs)
under the Ethanol Blended Petrol (EBP) Program - Revision of ethanol price for supply to Public Sector OMCs
for Ethanol Supply Year (ESY) 2022-23 [1st Dec 2022 to 31st Oct 2023]
▫ The Cabinet has approved higher ethanol prices derived from different sugarcane based raw
materials:
1. The price of ethanol from C heavy molasses route be increased from Rs.46.66 per litre to
Rs.49.41 per litre
2. The price of ethanol from B heavy molasses route be increased from Rs.59.08 per litre to
Rs.60.73 per litre
3. The price of ethanol from sugarcane juice/sugar/sugar syrup route be increased from
Rs.63.45 per litre to Rs.65.61 per litre
4. Additionally, GST and transportation charges will also be payable
▫ All distilleries will be able to take benefit of the scheme and large number of them are expected to
supply ethanol for the EBP program.

­ Other Recent Developments

▫ Pilot projects of E100 dispensing from 3 locations at Pune was also launched by the Prime Minister.
▫ BIS specifications for E12 and E15 blending have also been notified on 2nd June 2021.
▫ MoRT&H by Central Motor Vehicles (25th amendment) Rules, 2021 have notified the mass emission
standards for E12 and E15 fuels.
▫ Government is also encouraging sugar mills and molasses based standalone distilleries to enhance
their ethanol distillation capabilities.
• Soft loans with interest subventions is being provided for enhancement and augmentation of
ethanol production capacity.

3) STEPS TAKEN TO PROMOTE BIO FUELS

• Steps taken by government to support biofuels

i. National Policy on Biofuels, 2018
ii. Pradhan Mantri Ji-Van Yojana (PMJY)
iii. EBP and associated steps
iv. Biogas Promotion
v. Advisory to carmakers to introduce flexible fuel engines in Vehicles

A) NATIONAL POLICY ON BIOFUELS, 2018

­ Aims
▫ Reduce India's oil import dependency.

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 ▫ Provide better income opportunities to farmers by helping them dispose of their surplus stock in
economic manner.
­ Key Highlights
▫ Categorization of Biofuels to enable extension of appropriate financial and fiscal incentives under
each category.
1. Basic Biofuels viz. First Generation (1G) bioethanol and biodiesel
2. Advanced Biofuels - Second Generation (2G) Ethanol, Municipal Solid Waste to drop-in fuels,
Third Generation (3G biofuels), bio-CNG etc.
▫ Expands the scope of raw material for ethanol production.
• Allowing use of sugarcane juice, sugar containing materials like Sugar Beet, Sweet Sorghum,
starch containing materials like Corn, Cassava, Damaged Food grains like wheat, broken rice,
Rotten Potatoes unfit for human consumption for ethanol production.
▫ Allows use of surplus food grains for production of ethanol for blending with petrol
▫ A VGF for 2G Ethanol bio-refineries of Rs 5,000 crore in 6 years in addition to additional tax
incentives, higher purchase price as compared to 1G biofuels.
▫ The new policy encourages setting up of supply chain mechanisms for biodiesel production from
non-edible oilseeds, used cooking oil, short gestation crops.
▫ Specifies the role of all the concerned ministries/ Departments with respect to biofuels.
­ Analysis: Expected Benefits
▫ The new policy addresses the supply side issues that has discouraged the production of biofuels
within the country.
▫ Reduce import dependency.
▫ Cleaner Environment
▫ Additional Income to Farmers
▫ MSW Management .
▫ More investment in biofuel sector
▫ Infrastructure Investment in Rural Areas
▫ Employment generation

B) PRADHAN MANTRI JI-VAN (JAIVA INDHAN VATAVARAN ANUKOOL FASAL AWASHESH NIVARAN)
YOJANA
­ Ministry of Petroleum and Natural Gas
­ Key Highlights
» The Yojana provides financial support (VGF) to Integrated Bioethanol Plant using Lignocellulosic
biomass and other renewable feedstock.
» Under the yojana, 12 commercial scale and 10 demonstration scale Second Generation (2G) ethanol
projects will be provided with VGF support in two phases:
▫ Phase-I (2018-19 to 2022-23): wherein six commercial projects and five demonstration
projects will be supported.
▫ Phase-II (2020-21 to 2023-24): wherein remaining six commercial projects and five
demonstration projects will be supported.
» Financial Outlay: 1969.50 crore for the period from 2018-19 to 2023-24.
» The ethanol produced by the scheme will be mandatorily supplied to OMCs to further enhance the
blending percentage under EBP program.
» Centre for High Technology (CHT), a technical body under the aegis of MoP&NG, will be the
implementation Agency for the scheme. The Project developers interested in availing benefits of the
scheme, shall be submitting their proposal for review by Scientific Advisory Committee (SAC) of
MoP&NG. Projects recommended by SAC shall be approved by Steering Committee of MoP&NG
under the chairmanship of Secretary, MoP&NG

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 ­ Significance
§ Incentivize 2G Ethanol Sector by setting up commercial and demonstration projects
§ Increased R&D in the sector.

­ Other Advantages
a) Meeting Government of India vision of reducing import dependence by way of substituting fossil fuels
with Biofuels.
b) Achieving the GHG emissions reduction targets through progressive blending/ substitution of fossil
fuels.
c) Addressing environment concerns caused due to burning of biomass/ crop residues & improve health
of citizens.
d) Improving farmer income by providing them remunerative income for their otherwise waste
agriculture residues.
e) Creating rural & urban employment opportunities in 2G Ethanol projects and Biomass supply chain.
f) Contributing to Swacch Bharat Mission by supporting the aggregation of nonfood biofuel feedstocks
such as waste biomass and urban waste.
g) Indigenizing of Second Generation Biomass to Ethanol technologies

C) WORLD BIOFUEL DAY

­ The day is observed to show the importance of fossil fuels.
­ History:
▫ It is celebrated in remembrance of Sir Rudolf Diesel, who created diesel engine.
• On Aug 8, 1893, he successfully used peanut oil to run a mechanical engine for the first time.
With this, he was able to foresee the possibility that fossil fuels could be replaced by
vegetable oil as a practical source of energy in the coming century.
▫ the day is marked by the inventor of the diesel engine, Sri Rudolf Diesel who was the first one to
predict the chance of vegetable oil being replaced by fossil fuels.
­ 2022 theme: 'Biofuels for Sustainability and Rural Income'

4) NATIONAL BIO-ENERGY PROGRAM

­ Why in news?
▫ MNRE notifies National Bio-Energy Program (Nov 2022)

­ Details
▫ MNRE has continued the National Bio-Energy Program for the period FY2021-22 to 2025-26. The program
has been recommended for implementation in two phases.
▫ Phase-1 of the program has been approved with a budget outlay of Rs 858 crores.
▫ The NBP will comprise of following sub schemes:
1. Waste to Energy Program: (Programme on Energy from Urban, Industrial and Agricultural
Wastes /Residues) to support setting up of large Biogas, BioCNG and Power plants (excluding
MSW to Power projects). IREDA will be implementing agency for the program.
2. Biomass Programme: (Scheme to Support Manufacturing of Briquettes & Pellets and Promotion
of Biomass (non-bagasse) based cogeneration in Industries) to support setting up of pellets and
briquettes for use in power generation and non-bagasse based power generation project.
3. Biogas Programme: To support setting up of family and medium size biogas in rural areas.

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5) BIOGAS

­ The biogas plants can generate biogas from organic substances like cattle dung, night soil, and biomass from the
Kitchen, garden, farms and other such bio-degradable material. This biogas is generated through a process called
anaerobic digestion (AD).

­ Steps taken to Promote Biogas:

A) NATIONAL BIOGAS AND MANURE MANAGEMENT PROGRAM (NBMMP)

­ By MNRE.
­ It is a central sector scheme with an aim to setting up family type biogas plants for providing biogas as clean
cooking fuel and a source of lighting primarily set up for rural and semi-urban households.
1. The slurry produced from biogas plants as a by-product is an organic bio-manure for enhancing crop
yield and maintaining soil health.
­ It is being implemented in all the state and UTs by MNRE through state nodal departments, Khadi and Village
Industries Commission (KVIC) and Biogas Development and Training Centres (BDTCs).

B) GOBAR DHAN YOJANA

­ The scheme was first announced in Budget 2018-19.
­ Galvanizing Organic Bio Agro Resources - Dhan (GOBAR-Dhan) focuses on managing and converting cattle
dung and solid waste in farms to compost, biogas and bio CNG.
­ The scheme aims to collect cattle waste and solid waste from farmers for sale to entrepreneurs, who
thereafter, will produce manure, biogas and bio-CNG from the waste. Thus, the schemes connect farmers
to buyers so that farmers can get right prize for dung and agri-waste.
­ Government has also announced an online trading platform to connect to buyers of agri-waste facilitating
the GOBAR-dhan scheme.
­ Ministry
▫ Ministry of Drinking Water and Sanitation (now Jal Shakti)
▫ It will be implemented under SLWM funding pattern of SBM-G guidelines.

C) SATAT INITIATIVE - TO PROMOTE COMPRESSED BIO-GAS AS AN ALTERNATIVE, GREEN

TRANSPARENT FUEL
­ Introduction
▫ The potential for Compressed Bio-Gas production from various sources in India is estimated at
about 62 million tonnes per annum.

­ About SATAT - Sustainable Alternative Towards Affordable Transport (SATAT)

▫ This is an innovative initiative to set up Compressed Bio Gas (CBG) production plants and make
available CBG in the market for use in automotive fuels.
▫ The national policy on bio-fuels, 2018 emphasize active promotion of advanced bio-fuels, including
CBG.
­ Ministry
▫ Union Ministry of Petroleum and Natural Gas & Skill Development and Entrepreneurship, with
PSU OMCs inviting Expression of Interests (EoI) from potential entrepreneurs.
­ Advantages
▫ Potential to boost availability of more affordable transport fuels.
▫ Better use of agri-residue and MSW.

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 ▫ Additional revenue source to farmers
▫ Direct and indirect job opportunities.
▫ Reduce import dependency and volatility to
price fluctuation.

D) NATIONAL MISSION ON USE OF BIOMASS IN COAL

BASED THERMAL POWER PLANT (MAY 2021: PIB)
­ In order to address the issue of air pollution due to
farm stubble burning and to reduce carbon
footprints of thermal generation, Ministry of Power
has decided to set up a National Mission on use of
Biomass in coal based thermal power plants.
­ The mission will have following objectives:
(a) To increase the level of co-firing from present 5% to higher levels to have a larger share of
carbon neutral power generation from the thermal power plants.
(b) To take up R&D activity in boiler design to handle the higher amount of silica, alkalis in the
biomass pellets.
(c) To facilitate overcoming the constraints in supply chain of bio mass pellets and agro- residue
and its transport upto to the power plants.
(d) To consider regulatory issues in biomass co-firing

7. HYDROGEN FUEL CELL

­ Introduction
▫ Hydrogen is the simplest fuel. A fuel cell combines hydrogen and oxygen to produce electricity, heat and
water.
­ Fuel Cell
▫ A fuel cell is a device that converts chemical potential energy (energy stored in the molecular bonds)
into electrical energy.
» A Proton Exchange Membrane (PEM) cell uses hydrogen (H2), and Oxygen (O2) as fuel.
» The products of the reaction are water, electricity and heat.
▫ Key Elements of a fuel cell
» The anode, the negative electrode of the fuel cell, conducts the electrons that are fed from the
hydrogen molecule so that they can be used in the external circuit.
» The Cathode, the positive post of the fuel cell, has channels etched into that distribute the
oxygen to all surface of the catalyst. It also conducts electrons back from the external circuit to
the catalyst, where they can recombine with hydrogen ion and oxygen to form water.
» The electrolyte is a proton exchange membrane. This specially treated material, which looks
something like ordinary kitchen plastic wrap, only conducts positively charged ions. The
membrane blocks electrons.
» The catalyst is a special material that facilitates the reaction of oxygen & hydrogen. It is usually
made up of platinum nano particles very thinly coated onto carbon paper or clothe.
▫ How does a fuel cell work
» Hydrogen from a tank onboard the vehicle, enters into anode side of the fuel cell.
» Oxygen pulled from air enters from cathode side
▫ As the hydrogen molecule encounters the membrane, a catalyst forces it to split into electron and
proton
» The proton moves through fuel cell stack and the electron follows an external circuit, delivering
current to the electric motor and other vehicle components.

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 » At cathode side, the proton and electron join again, and they combine with oxygen to form the
vehicle's only tailpipe emission, water.

­ Advantages of Hydrogen Fuel Cell

▫ Fuel cell avoids the "thermal bottleneck" (a consequence of 2nd law of thermodynamics) and are thus
inherently more efficient than combustion engines, which must first convert chemical potential energy
into heat, and then mechanical energy.
▫ Hydrogen is high in energy.
▫ Fuel cells don't have any moving part and thus are more reliable than traditional engines.
▫ No pollution (Only steam (H2O) emitted as by product)
▫ No Greenhouse gas and Climate Change (since no GHG are produced as bi-products)

­ Limitation
▫ Complex and difficult to build
▫ Still mostly in research phase
▫ Extracting hydrogen is difficult and expensive - catalyst used is Platinum- which is very expensive.

1) FUEL CELL ELECTRIC VEHICLE

­ Why in news?
▫ Union Transport Minister Nitin Gadkari travelled to Parliament in a hydrogen-based Fuel Cell Electric
Vehicle (FCEV) (March 2022)
» He used a Toyota Mirai, which sports three hydrogen tanks, and can be refuelled in an estimated
five minutes. It also has a 1.24 Kwh lithium ion battery pack. The car is powered by a 182 hp
electric motor.
» Why?
§ Demonstration; Spreading awareness about hydrogen, FCEV technology and its benefits
to support hydrogen based society for India
­ Details
▫ FCEV combine hydrogen and oxygen to produce electricity which runs the motor. .
» E.gs of cars using FCEV: Toyota's Mirai, Honda's Clarity, and Hyundai's Nexo.
▫ Since they are powered entirely by electricity, FCEVs are considered EVs, but unlike BEVs, their range and
refueling processes are comparable to conventional cars and trucks.
» The major difference between a BEV and a refueling time of just five minutes, compared to 30-
45 mins charging for a BEV.
» Also, consumers get five times better energy storage per unit volume and weight, which frees
up a lot of space for other things, while allowing the rider to go farther.

2) TYPES OF ELECTRIC VEHICLES

­ Electric Vehicles: The standard EV is also known as Battery powered EV (BEV):

▫ They don’t have an internal combustion engine and instead of an petrol/diesel, these vehicles run solely on
battery power. These can be charged at home or commercial charging stations.

­ Hybrid Electric Vehicles (HEVs): They run on both Internal Combustion Engines and electric motor that uses energy
stored in a battery. However, unlike other Evs, HEV cars battery is charged by regenerative braking.

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 ▫ Micro (or mild) Hybrid uses both battery and electric motor to make the car run. Though they can't run solely on
electric power, they maximize fuel economy by shutting off the internal combustion engine during complete
stops.

­ Plug-in Hybrid Electric Vehicles (PHEV): They expand the concept of HEVs. They have both an internal combustion
engine and a battery powered electric motor. This allows the battery to store enough power to feed the electric motor
and in turn decrease the gas usage by as much as 60%. They can travel around 60 kms on electric power, rather than
2-3 kms with a standard HEVs.

­ FCEV: discussion above

3) VARIOUS TYPES OF HYDROGEN

­ The most common element in nature is not found freely. It exists only combined with other elements, and has to be
extracted from naturally occurring compounds like water (which is a combination of two hydrogen atoms and one
oxygen atom). This process is energy intensive.
▫ Grey Hydrogen
» Hydrogen produced from fossil fuels. This constitutes a bulk of hydrogen produced today.
▫ Blue Hydrogen
» Hydrogen generated from fossil fuels with carbon capture and storage options
▫ Green Hydrogen
» Hydrogen generated entirely from renewable power sources. Here electricity generated from renewable
energy is used to split water into hydrogen and oxygen.

4) NATIONAL GREEN HYDROGEN MISSION

­ Ministry: MNRE
­ With a vision to make India an energy independent nation, and to decarbonize critical sectors, the Government
approved National Green Hydrogen Mission on Jan 4, 2023 with an initial outlay of Rs 19744 crores.
­ The mission will facilitate demand creation, production, utilization, and export of Green Hydrogen and
mobilization of Rs 8 lakh crores of investment by 2030.

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5) ELECTROLYZERS

­ Electrolysers are a critical technology for the production of low-emission

hydrogen from renewable or nuclear electricity.
▫ Note: Electrolysis is the process of using electricity to split water
into hydrogen and oxygen. This reaction takes place in a unit called
an Electrolysers.
▫ How does it work?
• Like fuel cells, Electrolysers consist of an anode and a
cathode separated by electrolyte. Different electrolyzers
function in different ways, mainly due to the different type
of electrolyte material involved in the iconic species it
conducts.

8. COAL GASIFICATION AND COAL LIQUEFACTION – CONVERTS COAL INTO CLEANER FUELS

1) COAL GASIFICATION

­ Why in news?
▫ Centre allows 50% concession in revenue share to promote coal gasification (May 2022)
» If the successful bidder consumes the coal produced either in its own plant(s) or plant of its
holding, subsidiary, affiliate, associate for coal gasification or liquefaction or sells the coal for
coal gasification or liquefaction on an yearly basis, subject to conditions that at least 10% of
scheduled coal production as per approved mining plan for that year shall be consumed or sold
for gasification or liquefaction, then the bidder can avail concession.

­ What is coal gasification and its advantages?

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 ▫ Coal Gasification is the process of converting coal into a gas that can be used as a fuel. During the
gasification process, coal is subjected to high temperatures and pressures, along with a controlled
amount of oxygen and/or steam. This causes the coal to break down into a mixture of gases, including
hydrogen, carbon monoxide, and methane.

▫ Advantages:
1. Versatility: The gas produced through coal gasification can be used as a fuel in a variety of
applications, including power generation, heating, and transportation
2. Efficiency: Gasification can be more efficient than traditional coal combustion because it
produces a gas that can be burned with high efficiency in turbines or engines
3. Reduced Emissions: Gasification can reduce emissions of pollutants, including sulfur dioxide,
nitrogen oxides, and particulate matter, compared to traditional coal combustion. It also has the
potential to capture and store carbon dioxide emissions, which can help mitigate climate change.
4. Utilization of low-quality Coal: Gasification can be used to convert low-quality coal, such as
lignite or sub-bituminous coal, into a gas that can be used as a fuel.
5. Production of valuable by-products: Gasification can also produce byproducts such as ammonia,
methanol, and other chemicals that can be used in a variety of industries.
▫ Disadvantages:
» High capital costs, complex technology, and potential environmental risks associated with handling
and storing coal.
» Additionally, the gasification process still produces some greenhouse gas emissions, even with
carbon capture and storage technology.

2) COAL LIQUEFACTION:

­ It is the process of converting coal into liquid hydrocarbons, such as crude oil and synthetic fuels.

­ There are two primary methods of coal liquefaction: direct liquefaction and indirect liquefaction.
» Direct liquefaction involves heating coal with a catalyst and a hydrogen source at high pressures and
temperatures, typically in the range of 400-500°C and 1,000-4,000 psi. This process breaks down the coal's
complex organic molecules into simpler molecules, which then react with hydrogen to form liquid hydrocarbons.
» Indirect liquefaction involves gasifying coal to produce synthesis gas, or syngas, which is a mixture of carbon
monoxide and hydrogen. The syngas is then converted into liquid hydrocarbons using the Fischer-Tropsch
process, which involves a series of chemical reactions that build longer hydrocarbon chains.

­ Coal liquefaction has the potential to produce large quantities of liquid fuels from domestic coal reserves, but it can
be costly and energy intensive. Additionally, coal liquefaction can produce large amounts of carbon dioxide emissions,
which contributes to climate change. As a result, the use of coal liquefaction has been controversial and has declined
in recent years in favor of alternative energy sources.

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