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Introduction:
As the demand for data centres continues to rise in India,
so does the need for sustainable and environmentally friendly energy sources.
Renewable energy procurement plays a crucial role in reducing carbon emissions
and ensuring a greener future. In this blog post, we will explore the key
considerations for data centres in India when it comes to procuring renewable
energy.
Policy and Regulatory Landscape:
Before embarking on renewable energy procurement, it's
essential to understand the policy and regulatory landscape in India.
Familiarize yourself with the national and state-level renewable energy
targets, incentives, and regulatory frameworks. For instance, India has a
target of achieving 450 gigawatts (GW) of renewable energy capacity by 2030.
Stay updated with government schemes and initiatives that promote renewable
energy adoption.
Energy Demand Assessment:
Conduct a comprehensive energy demand assessment to
understand the power requirements of your data centre. Analyse your current and
projected energy needs to determine the capacity and type of renewable energy
sources that can meet those requirements. For example, a medium-sized data
centre in India might have an average power demand of around 1 megawatt (MW)2.
Consider factors such as peak load, energy consumption patterns, and growth
projections.
Site Suitability and Resource Assessment:
Evaluate the site suitability and resource potential for
renewable energy generation. For solar energy, assess the availability of
sunlight throughout the year and consider factors like shading, orientation,
and land requirements for solar panels. India receives abundant sunlight, with
an average solar radiation of about 5 kilowatt-hours per square meter per day
(kWh/m²/day). For wind energy, analyse wind patterns, wind speed, and the
feasibility of installing wind turbines. India has a significant wind energy
potential, with an estimated potential of over 302 GW.
Renewable Energy Procurement Options:
Explore various renewable energy procurement options
available in India. These may include:
a. On-Site Generation: Installing renewable energy systems
within your data centre premises, such as solar panels or wind turbines, to
generate electricity on-site. On-site solar installations in India can cost
around INR 4.5 crore per MW5.
b. Power Purchase Agreements (PPAs): Enter long-term
contracts with renewable energy developers to purchase power generated from
their projects. PPAs can offer cost stability and help achieve renewable energy
goals. The average PPA tariff for solar energy in India ranges from INR 2.5 to
3.5 per kilowatt-hour (kWh)6.
c. Renewable Energy Certificates (RECs): Purchase RECs to
offset your data centre’s electricity consumption with renewable energy
attributes. This option allows you to support renewable energy without direct
on-site generation or PPAs. The cost of RECs can vary but is generally in the
range of INR 1 to 3 per kWh7.
d. Green Tariffs: Explore utility programs that offer
special tariffs or incentives for purchasing renewable energy. Check with your
local electricity provider for available green tariff options.
Financial Viability:
Assess the financial viability of your renewable energy
procurement strategy. Consider the upfront costs of installing on-site
renewable energy systems, the long-term savings they can generate, and the
payback period. Evaluate the financial models for PPAs and analyse the
projected cost savings over the contract duration. Determine the cost and
availability of RECs and factor them into your overall budget.
Environmental Impact and Certification:
Ensure that the renewable energy sources you choose align
with your data centre’s sustainability goals. Look for certifications like
Green Power Certification or Leadership in Energy and Environmental Design
(LEED) certification to demonstrate your commitment to renewable energy and
environmental responsibility.
Conclusion:
Renewable energy procurement is a significant step towards
sustainable and responsible data centre operations. By considering the policy
landscape, energy demand, site suitability, procurement options, financial
viability, and environmental impact, data centres in India can successfully transition
to renewable energy sources. Embracing renewable energy not only reduces carbon
emissions but also helps build a resilient and eco-friendly data centre
industry in India.
The declining cost of solar and wind (solar
power plunged over 80% since 2010) should be utilized to integrate
battery storage and pump-hydro energy storage, which can act as a constant
clean power generation source and potentially solve the intermittency issues,
ultimately decarbonizing the grid. This will eliminate carbon emissions and
help reduce the cost of balancing the grid. The aim is to eliminate carbon
emissions from the grid and decarbonize energy procurement. As per Central
Electricity Authority (CEA), the Indian grid is currently close to 10-12%
carbon-free and is expected to rise by 25-30% by 2030. So, 24x7 carbon-free
energy would play a crucial role in decarbonizing the grid and helping India
achieve its climate goals.
Please check the “Optimal Generation Mix for a
Sustainable Future: CEA's 2029-30 Report Unveiled”.
https://ggupta478.blogspot.com/2023/05/optimal-generation-mix-for-sustainable.html
Remember, each data centre is unique, and it's important to
conduct a thorough assessment and seek expert advice to tailor your renewable
energy procurement strategy to your specific requirements and goals.
References:
- Ministry
of Power, Government of India. (2021). Renewable Energy Capacity Addition
Targets.
- Solar
Energy Corporation of India. (2021). National Solar Radiation Database of
India (1998-2020).
- Ministry
of New and Renewable Energy, Government of India. (2021). Wind Power
Potential in India.
- Bridge
to India. (2022). India Solar Market Handbook 2022.
- Bridge
to India. (2021). India Solar Handbook 2021
- Indian
Energy Exchange. (2023). REC Trading Dashboard.
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