AI could be Game Changer for Distributed Renewable Energy

Syllabus: GS3/Energy

Context

• Artificial intelligence (AI) can be a game changer for India’s rapidly expanding distributed renewable energy, said the Ministry of New and Renewable Energy (MNRE) at India AI Impact Summit.

Distributed Renewable Energy (DRE)

• Distributed renewable energy (DRE) refers to small-scale, decentralised power generation systems typically ranging from a few kilowatts to megawatts that produce electricity from renewable sources directly.
  • Unlike conventional centralized power plants that require extensive transmission infrastructure, DRE systems operate independently or connect to the local distribution network.

• Sources: rooftop solar, small wind turbines, or biomass.
• India has around 140 gigawatts (GW) of solar power capacity, of which DRE is about 35 GW.
  • In the last 15 months, India has added close to 18 GW to DRE, both under the PM Surya Ghar and PM-KUSUM.
• Advantages of DRE in India: 
  • Rapid deployment in remote areas without waiting for grid extension.
  • Reduced transmission and distribution losses.
  • Enhanced energy security through diversification.
  • Lower environmental impact compared to fossil fuels.
  • Job creation and economic development in rural areas.
  • Empowerment of local communities through energy ownership.

Use of AI in DRE

• Optimising Energy Systems: AI helps forecast solar and wind better, enabling higher renewable integration and reducing curtailment.
  • AI-managed smart grids, batteries, and demand-response systems reduce energy wastage.
• Efficiency in Industries: AI-driven optimization reduces emissions in transport (fuel routing, logistics), buildings (smart HVAC), and manufacturing (process automation).
• Policy Framework: Energy Conservation Building Code & National Energy Efficiency Roadmap integrate AI in renewable energy, and sustainable design.
• Smart Real Estate: AI-driven solutions such as smart lighting, predictive Heating, Ventilation, and Air Conditioning (HVAC), automated building controls energy savings up to 25%.

Challenges

• Data Scarcity and Poor Quality: Limited availability of high-resolution, real-time data from rooftop solar, microgrids, and rural systems reduces the accuracy of AI forecasting and optimisation models.
• High Initial Costs: Deployment of smart sensors, AI software platforms, and skilled manpower increases upfront investment, making small DRE projects less financially viable.
• Skill and Capacity Constraints: Lack of trained professionals in AI–energy integration, especially at the local utility and DISCOM level, limits effective implementation.
• Cybersecurity and Interoperability Risks: AI-enabled DRE systems are vulnerable to cyberattacks and often face compatibility issues due to diverse hardware vendors and legacy grid infrastructure.

Key DRE Solutions Transforming India’s Energy

• Rooftop Solar Systems: These systems range from 1-10 kW for residential installations to larger capacities for commercial and industrial users. 
• Solar + Storage Solutions: Integrated solar and battery storage systems address the intermittency challenge of solar power. 
• Solar Agricultural Pumps: These systems eliminate farmers’ dependence on diesel pumps or unreliable grid electricity. 
• Biomass and Small Hydro: Biomass gasification plants convert agricultural waste into electricity, providing a reliable baseload power source complementary to solar.
  • Small hydro projects (up to 25 MW) harness flowing water in hilly regions. 

Government Policies and Incentives Driving DRE Adoption

• PM-KUSUM Scheme: The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) aims to add 30.8 GW of solar capacity through:
  • Component A: 10 GW of decentralized ground-mounted solar plants.
  • Component B: Installation of 20 lakh standalone solar pumps.
  • Component C: Solarization of 15 lakh grid-connected agricultural pumps.
  • The scheme offers 30-90% subsidies depending on the component and beneficiary category.
• Pradhan Mantri Surya Ghar Yojana: This scheme targets one crore households with rooftop solar installations by providing:
  • Subsidy of 40% for systems up to 3 kW.
  • Subsidy of 20% for systems between 3-10 kW.
  • Simplified application process through national portal
  • Low-interest loans through partner banks.
  • The initiative aims to save households up to ₹15,000 annually in electricity bills.
• State-Level Initiatives: Several states have introduced similar complementary policies.

Conclusion

• Distributed Renewable Energy represents a transformative approach to addressing India’s energy challenges. 
• By generating clean power close to the point of use, DRE systems enhance energy access, improve reliability, reduce environmental impact, and create economic opportunities. 
• The declining costs of technologies, supportive government policies, and innovative business models are accelerating DRE adoption across India.

Source: IE