How can AI & Digitization Affect the Renewable Energy Sector in India?

Recent studies have shown that AI is already being used globally in the renewable energy sector for as many as 50 different aspects and it could become a USD 13 billion sector soon.

June 28, 2024. By News Bureau

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Renewable energy sector in india

AI and Digitization Affect

Renewable Energy Installed Capacity

India’s energy consumption has gone up manifolds in recent years, driven by economic welfare and rapid industrialization. This has made India the third largest energy consumer in the world. However, finite fossil fuel, global conflicts and energy cartels have caused disruptions in the world's energy supplies, and India has often faced the brunt of it.

This has forced India to look elsewhere to meet its energy demands, particularly in the renewable energy sector. Indian policies gave birth to the International Solar Alliance with key countries of the Torrid Zone, while it is also the fourth largest in Renewable Energy Installed Capacity and Wind Power capacity. India’s target of reducing reliance on fossil fuel has been bolstered by its pledge of 500 GW of non-fossil fuel-based energy by 2030 - the world’s largest renewable energy development.

The country is increasingly giving preference to the renewable energy sector, as up to 100% of FDI has been made legal in the sector. Presently, India’s non-fossil fuel capacity is at 198.75 GW, almost 45% of the country’s demands. Renewable energy capacity of the country has grown by 128% since 2014, one of the largest globally. The Government of India has announced its goal of reaching 500 GW of renewable energy capacity by 2030, highlighting considerable growth of the sector in the immediate future.

However, the advent of renewable energy has brought in unique challenges as well. Traditional solutions have been proved incapable of utilising the potential of renewable energy, being unable to optimise supply chain, grid management, storage and energy trading. However, the Indian government has now identified new-age technologies, like Artificial Intelligence (AI) and has emphasised increased digitization of the processes to leverage the potential of the sector.

India's commitment to renewable energy
To understand how new-age technologies can optimize the renewable energy sector in India, one must understand the country’s commitment and future predictions for the industry. India is aiming to diminish its carbon emissions by 1 billion tons by 2030 and achieve net-zero carbon emissions by 2070. This has pushed the government to set up 57 solar parks of 39.28 GW throughout the nation, with Floating PV projects in the pipeline. The National Green Hydrogen Mission has been established with a preliminary budget of INR 19,744 Cr. The centre has brought in the Wind-Solar Hybrid Policy and is aiming to enhance the capacity of Off-shore wind power capacity to 30 GW by 2030. The country has introduced significant subsidies for renewable energy generation across sectors, underlining the government’s dedication towards becoming energy-sufficient and a leader in the sector. These initiatives have given a boost to domestic renewable energy producers, as the sector has taken the front seat in India’s development bid for the future.

Challenges & use cases for AI in renewable energy
In the modern world, grids are used to supply energy to individual power stations. However, with increasing demand, a multi-directional flow of electricity has become the norm, to sustain power usage. From the EV ecosystem to residential and commercial usage, power flow has been erratic at best. This transformation has increased the importance of real-time data in energy flow and AI and other advanced digital tools have been identified as the ideal solutions for it.

The renewable energy sector has already begun to leverage the computational power of AI to enhance productivity and increase innovation. It is being used to supplement the development of smart grids and meters that gather useful data and analyse them to establish a predictive flow of energy. Recent studies have shown that AI is already being used globally in the renewable energy sector for as many as 50 different aspects and it could become a USD 13 billion sector soon.

Predicting the supply and demand of energy through AI is helping to develop a deeper understanding of its availability throughout the world. In simpler words, different regions have very distinct renewable energy generation capacities. India’s Himalayan states receive lower Sunlight penetration than that of Rajasthan or Madhya Pradesh. Coastal states generate more wind electricity than that of Bihar. Entities in the renewable energy sector are leveraging machine learning to understand the availability and practicality of it, improving the economic aspects and making a smooth integration into the grid system. This will also emphasise the importance of AI-driven energy storage that can help with grid frequency, obtaining capacity data as well as managing resources.

Another application of AI in India’s renewable energy sector is predictive maintenance. Through this strategy, the performance of the electricity-generating assets can be monitored in real-time and potential downtime can be predicted well ahead of time. Technology companies have already developed machine learning algorithms that can predict when cables need to be replaced before they stop working and recent studies reveal that predictive maintenance can diminish as much as 30% of power outage, attributed to traditional maintenance periods.

Furthermore, smart meters, sensors and IoT devices can help manage and control power grids to optimize the flow of energy. AI can also analyse demand response data to predict electricity prices and establish dynamic pricing while facilitating affordable energy trading.

Conclusion
As renewable energy becomes more mainstream, the integration of AI and digitization will become a prerequisite to manage and drive energy supply & demands. Renewable energy producers are increasingly adopting new technologies to optimise efficiency and productivity - bringing about a greener future for power generation. The world is standing at the brink of a renewable energy transformation, owing to several factors, and utilising the true potential of AI can work as a catalyst in this event, reducing carbon emissions.

- Geetanjli Dhanjal, Senior Director of Business Transformation, Yantra