Powering Sustainability
11th August 2023
Renewable energy allows manufacturing companies to address climate change, achieve cost savings, enhance energy security, comply with regulations, drive innovation and demonstrate corporate social responsibility. By transitioning to renewable energy sources, manufacturing companies can contribute to a sustainable future while reaping numerous economic and environmental benefits. Here is deep dive into the transformative rol of renewable energy in manufacturing and where you can begin.
Unprecedented changes in weather patterns caused by human-induced climate change have increased the emphasis on renewable energy adoption in the manufacturing sector. As part of its strategy unveiled at COP26, India has set ambitious targets to install non-fossil fuel electricity, source 50% of its energy requirements from renewables and achieve significant reductions in carbon intensity and net-zero emissions by 2030 and 2070, respectively. To attain these goals, investment in clean energy technologies is vital.
Renewable energy in manufacturing
Renewable energy adoption is essential for sustainable manufacturing in India. The benefits of sustainable manufacturing are elaborated on below to understand more about how embracing these renewable energy sources can help manufacturers mitigate environmental impact, reduce reliance on fossil fuels and position themselves as environmentally responsible entities.
Climate change mitigation: Manufacturing processes are often associated with significant Green House Gas (GHG) emissions, a primary driver of climate change. Manufacturing companies can significantly reduce their carbon footprint by transitioning to renewable energy sources such as solar, wind, biomass and hydroelectric power. Renewable energy technologies produce minimal or zero GHG emissions during operation, making them crucial for mitigating climate change and meeting emission reduction targets.
Cost savings: The costs of renewable energy technologies have steadily declined over the years, making them increasingly cost-competitive with traditional fossil fuels. By adopting renewable energy sources, manufacturing companies can achieve long-term cost savings. Renewable energy systems have lower operational and maintenance costs than conventional energy sources. Thus, renewable energy systems aid manufacturing plants in having an improved financial performance and reduced energy expenditure over time.
Energy security and independence: Fossil fuels, such as coal, oil and natural gas, are finite resources susceptible to price volatility and geopolitical uncertainties. Relying heavily on fossil fuels for energy exposes manufacturing companies to supply chain disruptions and price fluctuations. In contrast, renewable energy sources are widely available and can provide a stable and secure energy supply. By investing in renewable energy, manufacturing companies can reduce their dependence on fossil fuels, enhance energy independence and ensure a more resilient energy infrastructure for the country.
Regulatory compliance and market access: Governments and regulatory bodies worldwide are implementing stricter environmental regulations and targets to address climate change and promote sustainable development. Manufacturing companies that adopt renewable energy can align themselves with these regulations, ensuring compliance and avoiding potential penalties. Moreover, many consumers and businesses prefer to engage with environmentally responsible companies. Embracing renewable energy enhances a companyโs reputation,
improves market access and attracts environmentally conscious customers and business partners.
Technological advancements and innovation: The renewable energy sector is characterised by continuous technological advancements and innovation. Investments in research and development drive improvements in renewable energy technologies, making them more efficient, reliable and cost-effective. By adopting renewable energy, manufacturing companies can contribute to the growth and development of these technologies, benefit from ongoing innovations and gain a competitive edge in the market.
A sustainable image for CSR: Embracing renewable energy aligns with corporate social responsibility goals and demonstrates a commitment to sustainability and environmental stewardship. It enhances a companyโs reputation, appealing to customers, investors and stakeholders who prioritise sustainability. Manufacturing companies prioritising renewable energy showcase their dedication to reducing environmental impacts, supporting the global transition to a low-carbon economy and contributing positively to society.
Sources of renewable energy
India actively promotes renewable energy sources to facilitate sustainable manufacturing practices. Manufacturers acknowledge the significance of reducing carbon emissions, improving energy efficiency and addressing the challenges of climate change. Industry estimates tell us that by 2026, global renewable electricity capacity will rise more than 80% from 2020 (to more than 5,022 gigawatts). Furthermore, almost two-thirds of this growth will come from wind and solar, an increase of 150% (3,404 gigawatts). By 2035, renewables will be well poised to generate 60% of the worldโs electricity.
Solar power: Solar energy is a crucial renewable source in Indiaโs sustainable manufacturing landscape. The country has abundant sunlight, making it ideal for harnessing solar power. Solarphotovoltaic (PV) systems are widely deployed in manufacturing industries. Rooftop solar installations and solar farms are standard methods of utilising solar energy. The falling cost of solar panels, coupled with supportive government policies and incentives, has accelerated solar adoption in the manufacturing sector.
Wind energy: Wind power is another significant renewable energy source for sustainable manufacturing in India. The country has vast wind resources, particularly along its coastlines and hilly regions. Many manufacturing facilities use wind turbines to reduce dependence on conventional power sources.
Biomass and biogas: Biomass and biogas technologies play a vital role in sustainable manufacturing in India. Biomass boilers and gasifiers generate heat and electricity in manufacturing processes. Biogas, produced from the anaerobic digestion of organic waste, is another form of renewable energy used in manufacturing.
Small hydropower: Small hydropower projects utilise the energy from flowing or falling water to generate electricity. India has numerous rivers, making small hydropower an attractive option for sustainable manufacturing. Micro and mini hydropower plants, typically with capacities below 25 MW, are employed in manufacturing units near water bodies. Small hydropower is a decentralised and environmentally friendly source of renewable energy.
Geothermal energy: Although geothermal energy is still nascent in India, it holds tremendous potential for sustainable manufacturing. Geothermal energy harnesses the heat from the Earthโs core to generate electricity and heat. India has some geothermal hotspots, such as the Puga Valley in Ladakh. As technology and exploration progress, geothermal energy could become a viable renewable energy source in manufacturing.
Waste-to-energy: Waste-to-energy technologies involve converting waste materials, such as municipal solid waste or industrial waste, into energy. Incineration, gasification and anaerobic digestion are common methods used in waste-toenergy plants. These facilities generate electricity, heat or biofuels, reducing waste disposal while producing renewable energy for manufacturing units.
Strategies to embrace renewable energy
One crucial aspect that manufacturing companies must prioritise to reduce their carbon footprint is to secure renewable energy sources to power manufacturing processes effectively. They can employ the following strategies specifically to achieve this goal:
Investment in renewable energy companies
An alternative option is to invest in or acquire a small percentage of shares in companies that generate renewable energy. By doing so, manufacturers can access renewable power at a lower cost. This method requires minimal investment while promoting the growth of the renewable energy sector.
Purchasing renewable power
Renewable energy management companies possess extensive research databases accumulated over many years. This data includes valuable insights into wind patterns, solar light patterns and other factors specific to different geographical locations. Collaborating with these companies can enhance the value proposition for manufacturing companies seeking to secure renewable power.
Installing solar panels
Manufacturing companies can leverage their infrastructure by installing solar panels on the roofs of their factories and car sheds. Utilising open spaces in compliance with statutory norms can maximise solar energy generation. Although this approach requires initial capital investments, the long-term benefits of energy savings and reduced environmental impact are significant.
In summaryโฆ Advancements in solar and wind capacity installations, coupled with innovation and collaboration, can enhance the accessibility and cost-effectiveness of renewable energy sources. The decreasing costs and technological improvements associated with renewables have already made them more competitive. The manufacturing sector can move towards a more sustainable and secure future by diversifying its energy portfolio and embracing renewable sources such as solar, wind, biomass and hydroelectric power.
