Economic Survey moots policy thrust to ensure supply of metals for Solar PV, battery storage

As India prepares a roadmap for net zero carbon emissions by 2070, the two most crucial pillars are the transition to renewable energy (RE) sources and their storage. The transformation is “mineral-intensive” and it is “pertinent” that government policy addresses the issue of supply of metals used for making solar PV modules and storage batteries, Economic Survey said. The Survey anticipates that as nations line up resources to ensure supply of metals and minerals required for making RE equipment, including batteries, their prices are likely to increase going ahead. The two main pillars for mitigation action to achieve net-zero carbon ambition are transition to clean and renewable sources of energy and storage of this energy. The World bank in its report ‘Minerals for Climate Action’ has in its report mentioned that this transition from conventional fossil fuel-based energy to clean energy as well as battery storage will be more mineral intensive, it said. “Minerals and metals like copper, aluminium, iron, manganese, nickel, etc are critical for developing clean energy sources like solar photovoltaic (PV), wind, nuclear, while minerals like lithium and graphite are important for energy storage. Therefore, on the policy front, it is pertinent to prepare for this,” the Survey added. The survey pointed out that the pace at which shift from conventional fossil-fuel based sources is made will determine the extent and mix of investment in renewable sources of energy. “With the developed countries as frontrunners of net-zero emission plans, it is important to avoid the risk of being a late comer. The inelastic supply of minerals is already increasing the prices of minerals which is likely to shoot up even further in the future,” it suggested. The survey also recommended encouraging R&D to ensure effortless switch to renewable sources of energy, which may also include focus on developing technology that recycles, reuses and repurposes minerals. “Simultaneously focus should be laid on building storage for intermittent electricity generation from solar PV and wind farms to ensure on-demand energy supply,” the survey said citing the example of high natural gas prices in Europe. The recent surge in prices of natural gas in Europe due to high energy demand coupled with cold spells across the region and slower winds to run wind turbines resulted in lower electricity output. The energy crisis being experienced by Europe brings to the fore the need for having a diversified mix of sources of energy of which fossil fuels are an important part, it has suggested. India is working on acquiring mines of strategic minerals such as lithium and cobalt in producing countries like Australia, Argentina, Bolivia and Chile. The government’s move is aimed at ensuring a committed supply of raw material especially for renewable energy (RE) and e-mobility sectors. While, in the country, the Atomic Minerals Directorate (AMD) conducted preliminary surveys on surface and limited subsurface exploration, which revealed presence of Lithium resources of 1,600 tonnes (inferred category) in the pegmatites of Marlagalla–Allapatna area in Mandya district of Karnataka.