How Renewable Energy Communities Help in Reducing Energy Consumption

India is a developing country with a population of 1.4 billion. It is on the path of economic development through rapid industrialisation, technological innovation, and sustainable infrastructure growth, which are expected to surge the energy demand in the coming years. At the 26th Energy Technology Meet last year, the Minister of Petroleum and Natural Gas, Shri Hardeep S. Puri, stated that India’s energy consumption is three times the global average and that the country is likely to account for 25 percent of global energy demand growth over the next two decades.

The escalating demand for energy is a clear indicator of the country’s impressive growth rate. However, it comes with the responsibility to conserve energy in a nation still significantly reliant on non-fossil-generated energy and committed to achieving net-zero emissions by 2070. Although renewable energy today accounts for 46.3 percent of the country's total installed power generation capacity, we have a long way to go. The conscious decision to use and produce less energy is pivotal to becoming a more environmentally friendly nation. National Energy Conservation Day serves as a timely reminder to focus on energy efficiency and conservation, and in this quest, Renewable Energy Communities (RECs) are playing a key role.

India has several renewable energy communities and projects focused on harnessing local resources for sustainable development, such as Dharnai, Bihar and Odanthurai, Tamil Nadu. These communities serve as an inspiration for how localised renewable energy solutions contribute to a cleaner and more sustainable future and conserve energy. Here are some ways Renewable Energy Communities (RECs) help in reducing energy consumption:
 
Decentralising energy generation
Rather than focusing on traditional large, central power stations and transmitting energy across long distances, Renewable Energy Communities (RECs) foster the decentralisation of the energy system. In a decentralised energy system, power is generated from various renewable sources, including solar, wind, CBG, and others, to meet the growing energy needs. Moreover, the production facility is located closer to the site of energy consumption. This means that energy production, distribution, and consumption happen in the close by area. This enables the optimal use of renewable energy, reduces transmission and distribution inefficiencies, and related costs. It also mitigates the risk of total blackouts across a large region in the event of a central plant failure and makes the system easier and cheaper to repair.
 
Energy efficiency and low consumption
Optimising energy consumption is of utmost priority in today’s time. Energy consumption will increase, but if it is not utilised efficiently, whether it is generated from renewable or non-renewable sources, it can lead to unnecessary wastage, and higher costs, hindering efforts toward sustainability and energy security. RECs enable communities to manage and reduce energy consumption through collective efforts. Transitioning to renewable sources of energy, and locating the system close to consumption significantly help to cut down the cost. Further, by promoting community engagement by spreading awareness about energy-saving habits among members it reduces consumption. Along with it, regular assessments within the community help identify areas of waste and opportunities for improvement.
 
Grid stability
Transitioning to renewable sources of energy is certainly the only choice for creating a sustainable future, but one of the challenges along the way is grid instability. Wind and sunlight are erratic sources of energy. There is always a risk of fluctuation in supply, making it difficult for the grid to maintain a consistent and reliable flow of electricity. The decentralisation of renewable energy generation enhances grid stability by reducing strain on the centralised grid. Additionally, advanced energy storage technologies stabilise the grid by storing excess energy when the supply is high and releasing it during periods of low energy generation.
 
Economic and social benefits
For a growing economy such as India, RECs also offer economic and cost-saving benefits. Producing energy locally enables residents and businesses to collectively generate, share, and consume clean energy. The high installation cost of renewable technologies is one of the reasons that keep people from embracing them, especially for individuals or smaller entities. Pooling technologies not only reduce the reliance on traditional sources of energy, but also lower the upfront cost to install renewable technologies such as solar panels, wind turbines, or biogas systems. Moreover, the approach serves as a great source to boost local economies and create jobs in renewable energy sectors.
 
Government and policy support
These communities also receive substantial support from the government in terms of various incentives and subsidies that reduce financial burdens. The initiatives to promote renewable energy are strengthened through policies and incentives such as tax credits, subsidies, and regulatory reforms, promoting further development in the region.
 
Taking inspiration from renewable energy communities, we must work in sync to build a greener future. The expansion of RECs aligns with the national energy goals, contributing to a greener future. By pooling resources, sharing expertise, and investing in necessary infrastructure, both the public and private sectors can accelerate the adoption of RECs, ensuring a sustainable energy future. As India observes the 34th National Energy Conservation Day 2024, centred around the theme of "Powering Sustainability: Every Watt Counts,” individuals, industries, and governments must come together to adopt sustainable energy practices. The responsibility to advance the country’s efforts to become a net-zero nation lies in the hands of every individual.

- Davindar Saproo, Sr. General Manager, Sales and Marketing, Green Power International Pvt Ltd.