How to Make Electric Car Batteries Without Overwhelming Reliance on China

Building indigenous capacities to produce raw materials for lithium-ion batteries will be crucial for achieving energy transition goals.

The global transition to green technologies has increased the demand for lithium dramatically.

This critical mineral, abundant but distributed unevenly, is essential for energy storage and transport electrification.

According to the International Energy Agency, by 2040, the demand for lithium could be up to 42 times its 2020 levels.

Lithium-ion batteries are used to power electric vehicles and store renewable energy such as wind and solar.

In 2023, the demand for batteries crossed 750 GWh, up 40 percent from 2022

Owing to their high energy density, long cycle life and efficient discharge capacities, these batteries have become crucial in the field of energy storage and electric mobility.

By 2040, over two-thirds of passenger vehicles will be electric. Lithium-ion batteries are also crucial for grid storage systems, ensuring grid reliability by balancing energy inputs and outputs.

Their efficiency and lightweight nature also make them vital for portable electronics.

They are also used in smartphones – in 2022 alone, around 1.39 billion smartphones, mostly powered by lithium-ion batteries, were sold globally.

However, a demand-supply mismatch, particularly in the components used to manufacture these batteries, poses several challenges for these exponentially growing markets.

Major markets for electric vehicles – and thus, lithium-ion batteries – include the US, Europe and China.

India is one of the largest importers of lithium-ion batteries and its lithium-ion battery market size is estimated to be at $US4.71 billion in 2024. By 2029, it is expected to reach $US 13.11 billion.

The problem lies in an overwhelming reliance on China for refining and producing lithium and lithium-ion batteries, which poses a significant challenge for the sustainability goals of several countries.

Challenges in the lithium supply chain 

The production of lithium-ion batteries relies on a complex global supply chain.

This begins with mining companies extracting the mineral, and refining them on site to produce battery-grade raw materials. Raw materials typically contain lithium, cobalt, manganese, nickel and graphite.

Manufacturers buy these raw materials and use them to produce cathode and anode active battery materials.

These active materials are then bought by traders and sold to firms that produce battery cells.

Battery manufacturers assemble the battery cells into modules and then pack and sell them to buyers such as automakers, who place the finished batteries in electric vehicles.

The problem starts with the availability of the prime raw material – lithium – its processing and refining, and finally, the production of active materials.

Nearly 80 percent of the known deposits of lithium are in four countries – the South American lithium triangle of Argentina, Bolivia and Chile, and Australia.

The market, however, is dominated by China – a country with meagre reserves.

Despite holding less than 7 percent of reserves, China is the world’s largest importer, refiner and consumer of lithium.

Sixty percent of the world’s lithium products and 75 percent of all lithium-ion batteries are produced in China. This is primarily fuelling China’s electric vehicle market, which is 60 percent of the world’s total. 

Though the US, Europe and India have begun producing lithium ion battery packs, the production of the most critical components of the lithium-ion battery value chain – cathode and anode active materials – remains concentrated in China.

Depending on the chemistry of the lithium-ion cells, cathode active material would comprise 35-55 percent of the cell, and anode active material would  be 14- 20 percent.

Countries aiming to ramp up lithium-ion battery supply would need to focus on the production of these components.

Today, China represents nearly 90 percent of global cathode active material manufacturing capacity, and over 97 percent of anode active material manufacturing capacity.

The remaining gaps in manufacturing capacity are being filled up by Korea and Japan.

Efforts are underway to zero in on a more sustainable, cost-effective and energy-dense chemistry of the lithium-ion cell.

For instance, there’s the NMC battery cell, where the cathode active material is made from a combination of nickel, manganese, and cobalt. Nickel increases the energy density, and manganese and cobalt are used to improve thermal stability and safety.

Then there’s the NCA cell, or the Nickel Cobalt Aluminium Oxide Cell, where the manganese is replaced with aluminium to increase stability.

One of the more coveted cell chemistry technologies is Lithium Cobalt Oxide. With its high specific energy and long runtimes, it is considered ideal for smartphones, tablets, laptops and cameras.

The star of cell chemistries, however, is LFP — Lithium Iron Phosphate battery.

With their thermal stability, LFP batteries are safer and have a longer cycle life, suitable particularly for off-grid solar systems and electric vehicles. They also perform well in high-temperature conditions and are environment friendly due to the absence of cobalt.

Today, LFP has graduated from a minor share in battery manufacture  to the rising star of the battery industry.

LFP battery cells are powering over 40 percent of electric vehicle demand globally in 2023. This is more than double its share recorded in 2020.

Efforts to increase the manganese content of both NMC and LFP are also underway. This is being done to boost energy density while keeping costs low for LFP batteries, and reduce cost while maintaining high energy density for NMC cells.

Ramping up domestic production

An alternative to making energy storage cost-effective and decreasing reliance on critical minerals such as lithium is sodium-ion batteries. 

Though these batteries still require some critical minerals such as nickel and manganese, they do reduce reliance on lithium.

Sodium-ion batteries, just like LFP, were also initially developed in the US and Europe.

But China has taken the lead here too –  its manufacturing capacity is estimated to be about ten times higher than the rest of the world combined.

Pricing of raw materials is a big factor in sodium-ion batteries replacing lithium ones; currently, prices are low and discouraging investments and delaying expansion plans. 

Then there are supply chain bottlenecks such as for high-quality cathode and anode materials required to manufacture sodium-ion batteries.

Until these issues are resolved, countries will have to build indigenous capacities to ramp up their lithium-ion battery production.

A few companies in India have started their manufacturing projects with support from the government, and many others are planning to do so.

The success of these, and others across the world, however, will depend on the localisation of lithium-ion value chain components such as the cathode and anode active materials, separator and electrolytes.

Separators work by separating the anode and cathode active materials to  prevent a short circuit; they also contribute to the overall working of the cell including its thermal stability and safety.

A few Indian companies are now gearing up to produce lithium-ion cathode and anode active materials as well as separators for the domestic as well as global lithium-ion battery supply chain.

They have also developed the technology for production of active raw materials for sodium-ion and aluminium-based batteries.

Such innovations will be crucial for the energy transition goals of countries such as India which are currently heavily dependent on importing raw materials for batteries.

Abhimanyu Singh Rana is an associate professor and the Director of Research & Development at BML Munjal University, where he  heads research on advanced materials and devices for clean energy and sustainability. BML Munjal University is working with Haryana-based Dawson group of companies for testing of raw materials for Lithium-ion batteries.

Amlan Ajay, director, Dawson Group, contributed significant technical content for this article.

Originally published under Creative Commons by 360info™.

Critical Mineral Recycling: India’s Path to Ensuring Energy Sustainability

India’s low private investments, high import dependency, and limited technological know-how have hindered the development of a robust domestic production of critical minerals from primary sources.

The Union Ministry of Mines, signed a memorandum of understanding (MoU) with the International Energy Agency (IEA) this November 13 for cooperation in the critical mineral domain. This partnership aims to make India’s mining practices compliant with international standards and improve the sharing of knowledge, technology transfer, and skill development in managing critical mineral resources and innovative extraction methods. Additionally, this marks a significant milestone for India in enhancing its niche capabilities in critical mineral recycling procedures through data collection, modeling, and resource analysis.

Earlier in May, IEA published its second annual “Global Critical Minerals Outlook Report,” in which it highlighted robust demand growth for critical minerals, especially lithium, which sees a 30% overall increase in demand, followed by nickel, cobalt, graphite, and rare earth elements due to substantial expansion of electric car adoption and clean energy network deployments in emerging economies.

The report further raised concern about the potential disruption in the supply chain due to the heavy concentration of mining and refining of these materials in specific geographical boundaries like China, Australia and Latin America. This concentration poses a significant risk to the global supply chain because disruptions in these regions could cause shortages and price fluctuations in critical minerals.

In line with the above, both the Ministry of Mines and the IEA have organised workshops and stressed the importance of critical mineral recycling. Recycling critical minerals is vital for maintaining sustainable supply chains, driving innovation, reducing import dependency and enhancing environmental sustainability in the long-term.

Previously, the IEA published one of the first-of-its-kind reports on critical minerals in  2021, where it presented key policy recommendations to scale up the recycling process of critical minerals. Another IEA report showed that the establishment of dedicated recycling infrastructure could reduce new mining activity needs for copper and cobalt by 40% and lithium and nickel by 25% by the end of 2050. Moreover, IEA’s critical mineral policy tracker, where it projected the market value of recycling of critical minerals could grow and reach up to $200 billion by 2050.

Over the years, India has long relied on imports for critical minerals. In FY 2022-23, India’s import reliance was 100% for lithium, 93% for copper ore and concentrates, 100% for cobalt, and 100% for nickel. In FY 2023-24, it spent a staggering amount of Rs 34,000 crore importing lithium, graphite, cobalt, and nickel, lithium being the top import, followed by graphite and cobalt.

China has continued to be the dominant country, accounting for a total of 56.3% of India’s critical mineral imports. India’s continued reliance on China poses a significant and immediate risk to its national security and economic stability and renders it vulnerable to potential supply chain disruptions, trade embargoes, and price manipulation.

China’s dominance in the global critical mineral supply chain is alarming: it holds a near-monopoly, controlling roughly 70% of production, over 85% of processing, around 90% of key finished products, and 85-90% of mine-to-metal refining. Moreover, China has a history of weaponising these supplies to gain geopolitical leverage, as evidenced by its recent ban on key mineral exports to the United States.

Also read: Solving the Renewable Energy Puzzle: The Push for Long-Term Power Storage

Earlier it was reported that the Ministry of Mines plans to introduce a production-linked incentive scheme to enhance recycling and attract investments in critical mineral recycling technologies, as recommended by NITI Aayog and in line with the Battery Waste Management Rules, 2022. These rules require a minimum percentage of material recovery from used lithium-ion batteries in electric vehicles, to be implemented in a phased manner starting from 2026.

In the 2024 budget, the Union government even announced the establishment of  a critical mineral mission. This plan prioritised domestic production and overseas acquisition, while underscoring the importance of a skilled workforce, advanced research and development, financing mechanisms, and extended producer responsibility for establishing effective recycling processes for critical minerals.

Additionally, India became the first developing country to join the US-led mineral security partnerships in June 2023. One of the primary focuses of this forum is to secure a sustainable supply of these materials by focusing on the secondary recovery through recycling. Further, during the sixth consecutive India-US commercial dialogue, both the countries had signed a memorandum to “expand and diversify critical mineral supply chains”. A crucial aspect of this agreement is to improve business and investment to leverage each other’s strengths and achieve mutual benefits, especially in the recycling process.

India’s low private investments, high import dependency, and limited technological know-how have hindered the development of a robust domestic production of critical minerals from primary sources. The recycling initiative, focusing on secondary sources like e-waste, is a crucial step towards self-sufficiency. By increasing the availability of domestic mineral sources, it will reduce reliance on imports. According to experts, establishing dedicated recycling facilities could reduce primary sourcing of critical minerals by approximately 18%, saving around 1,500 kilotons of critical minerals over the next two decades.

India, being the world’s third largest CO2 emitter with a 6.67% share of total global greenhouse gas emissions, has set ambitious climate goals including becoming a net zero emission country by 2070, achieving half of its cumulative electric power installed capacity from renewable energy sources by 2030, and capturing a 30% share of total electric vehicle sales by the same.

In 2021, India launched a semiconductor mission, with a total financial outlay of Rs 76,000 crore, aimed to boost the domestic manufacturing of the semiconductors,  the backbone of the modern electronics and communication infrastructure. Additionally, India continues to engage in indigenous defense production, aiming for Rs 3 lakh crore defence production by 2029 to solidify its position as a manufacturing hub of global defence. Critical minerals are vital for reaching these goals as they are key elements in technologies like solar panels, wind turbines, electric vehicle batteries, manufacturing of chips and cutting-edge defence technologies.

A recent study by the Centre for Social and Economic Progress projected that the critical minerals requirements for India’s battery storage technologies and its solar and wind installations  will exponentially increase in the future, further emphasising the use of recycling and recycled materials. In summary of the report,  the mineral demands for India in the upcoming fiscal year are as follows – 17 tonnes of cobalt, 647 tonnes of molybdenum, 2,629 tonnes of nickel, 58 tonnes of lithium, 609 tonnes of graphite, and 73,954 tonnes of silicon.

By 2047, the demand for cobalt is expected to increase to 5,914 tonnes, molybdenum to 2,309 tonnes, nickel to 26,203 tonnes, lithium to 20,845 tonnes, graphite to 217,884 tonnes, and silicon to 197,077 tonnes. In order to meet the growing need for critical minerals, the country must strategically plan and invest in upgrading its recycling technologies.

The recycling process for these materials involves recovering critical minerals from end-of-life products, a method known as urban mining. This approach enables the recovery of critical minerals from discarded electronics, batteries, and other electronic goods. Global research and innovation focus on recovering critical minerals from discarded products at the end of their lifecycle. Two prominent methods include hydrometallurgy, which separates minerals by submerging the cathode of a lithium-ion battery in a solution, and pyrometallurgy, which achieves similar results using high temperatures. Additionally, mine tailings – fine-grained by-products from extracting raw minerals – are utilised as a recycling method, involving the extraction of valuable minerals from waste left behind after traditional mining.

Countries like Belgium, Japan, and South Korea have established advanced recycling facilities and implemented policies to promote critical mineral recycling from electronic waste, magnets, and industrial scrap. Meanwhile, nations such as South Africa, Australia, and Sweden have invested in innovative research on recovering critical minerals from mine tailings.

However, these approaches have several shortcomings. For instance, recycling processes may compromise the quality of the recovered material. Moreover, advanced recycling technologies entail high initial costs, and scaling up these processes to meet industry demands is challenging due to informal and underdeveloped end-of-life product waste collection.

As the third-largest global producer of e-waste, generating approximately 3.2 million tons per year, India can transform the challenges of managing e-waste into an opportunity to establish a robust circular supply chain for critical minerals. This would create a sustainable resource loop. To achieve this, India must refine its policies, ensure effective implementation, and establish advanced recycling facilities. These facilities should employ methods like solvent extraction and ion exchange to recover valuable minerals from waste materials, develop efficient separation and purification techniques, and promote mineral collection and processing.

By collaborating with industries, private players, and international stakeholders, India can achieve strategic autonomy and build a robust, sustainable supply chain of valuable resources like critical minerals in the coming years.

Mahesh Ganguly, a junior research fellow in International Relations and Area Studies, currently based at MMAJ Academy of International Studies, Jamia Millia Islamia, New Delhi. Haider Ali did his post graduation from Centre for the Study of Social Exclusion and Inclusive Policy, Jamia Millia Islamia, New Delhi.

Solving the Renewable Energy Puzzle: The Push for Long-Term Power Storage

As nations push toward 100% renewable energy, challenges like “Dunkelflauten” – periods of low solar and wind power – highlight the need for efficient, long-term energy storage solutions.

When the Sun is blazing and the wind is blowing, Germany’s solar and wind power plants swing into high gear. For nine days in July 2023, renewables produced more than 70% of the electricity generated in the country; there are times when wind turbines even need to be turned off to avoid overloading the grid.

But on other days, clouds mute solar energy down to a flicker and wind turbines languish. For nearly a week in January 2023, renewable energy generation fell to less than 30% of the nation’s total, and gas-, oil- and coal-powered plants revved up to pick up the slack.

Germans call these periods Dunkelflauten, meaning “dark doldrums,” and they can last for a week or longer. They’re a major concern for doldrum-afflicted places like Germany and parts of the United States as nations increasingly push renewable-energy development. Solar and wind combined contribute 40% of overall energy generation in Germany and 15% in the US and, as of December 2024, both countries have goals of becoming 100% clean-energy-powered by 2035.

The challenge: how to avoid blackouts without turning to dependable but planet-warming fossil fuels.

Solving the variability problem of solar and wind energy requires reimagining how to power our world, moving from a grid where fossil fuel plants are turned on and off in step with energy needs to one that converts fluctuating energy sources into a continuous power supply. The solution lies, of course, in storing energy when it’s abundant so it’s available for use during lean times.

But the increasingly popular electricity-storage devices today – lithium-ion batteries – are only cost-effective in bridging daily fluctuations in sun and wind, not multiday doldrums. And a decades-old method that stores electricity by pumping water uphill and recouping the energy when it flows back down through a turbine generator typically works only in mountainous terrain. The more solar and wind plants the world installs to wean grids off fossil fuels, the more urgently it needs mature, cost-effective technologies that can cover many locations and store energy for at least eight hours and up to weeks at a time.

Engineers around the world are busy developing those technologies – from newer kinds of batteries to systems that harness air pressure, spinning wheels, heat or chemicals like hydrogen. It’s unclear what will end up sticking.

“The creative part… is happening now,” says Eric Hittinger, an expert on energy policy and markets at Rochester Institute of Technology who coauthored a 2020 deep dive in the Annual Review of Environment and Resources on the benefits and costs of energy storage systems. “A lot of it is going to get winnowed down as front-runners start to show themselves.”

Finding viable storage solutions will help to shape the overall course of the energy transition in the many countries striving to cut carbon emissions in the coming decades, as well as determine the costs of going renewable – a much-debated issue among experts. Some predictions imply that weaning the grid off fossil fuels will invariably save money, thanks to declining costs of solar panels and wind turbines, but those projections don’t include energy storage costs.

Other experts stress the need to do more than build out new storage, like tweaking humanity’s electricity demand. In general, “we have to be very thoughtful about how we design the grid of the future,” says materials scientist and engineer Shirley Meng of the University of Chicago.

Reinventing the battery

The fastest-growing electricity storage devices today – for grids as well as electric vehicles, phones and laptops – are lithium-ion batteries. Recent years have seen massive installations of these around the globe to help balance electricity supply and demand and, more recently, to offset daily fluctuations in solar and wind. One of the world’s largest battery grid storage facilities, in California’s Monterey County, reached its full capacity in 2023 at a site with a natural-gas-powered plant. It can now store 3,000 megawatt-hours (MWh) and is capable of providing 750 MW – enough to power more than 600,000 homes every hour for up to four hours.

Lithium-ion batteries convert electrical energy into chemical energy by using electricity to fuel chemical reactions at two lithium-containing electrode surfaces, storing and releasing energy. Lithium became the material of choice because it stores a lot of energy relative to its weight. But the batteries have shortcomings, including their fire risk, their need for air-conditioning in hot climates and a finite global supply of lithium.

Importantly, lithium-ion batteries aren’t suitable for long-duration storage, explains Meng. Despite monumental price declines in recent years, they remain costly due to their design and the price of mining and extracting lithium and other metals. The battery cost is above $100 per KWh – meaning that a battery container supplying one MW (enough for about 800 homes) every hour for five hours would cost at least $500,000. Providing electricity for longer would quickly become economically unfeasible, Meng says. “I think four to eight hours is really a sweet spot for balancing cost and performance,” she says.

For longer durations, “we want energy storage that costs one tenth of what it does today – or maybe, if we could, one hundredth,” Hittinger says. “If you can’t make it extremely cheap, then you don’t have a product.”

One way of cutting costs is to switch to cheaper ingredients. Several companies in the US, Europe and Asia are working to commercialise sodium-ion batteries that replace lithium with sodium, which is more abundant and cheaper to extract and purify. Different battery architectures are also being developed – such as “redox flow” batteries, in which chemical reactions take place not at electrode surfaces but in two fluid-filled tanks that act as electrodes. With this kind of design, capacity can be enlarged by increasing tank size and electrolyte amount, which is much cheaper than increasing the expensive electrode material of lithium-ion batteries. Redox-flow batteries could supply electricity over days or weeks, Meng says.

US-based company Form Energy, meanwhile, just opened a factory in West Virginia to make “iron-air” batteries. These harness the energy released when iron reacts with air and water to form iron hydroxide – rust, in other words. “Recharging the battery is taking rust and unrusting it,” says William Woodford, Form’s chief technical officer.

Because iron and air are cheap, the batteries are inexpensive. The downside with both iron-air and redox-flow batteries is that they give back up to 60% less energy than is put into them, partly because they gradually discharge with no current applied. Meng thinks both battery types have yet to resolve these issues and prove their reliability and cost-effectiveness. But the efficiency loss of iron-air batteries could be dealt with by making them larger. And since long-duration batteries supply energy at times when solar and wind power is scarce and more costly, “there’s more tolerance for a little bit of loss,” Woodford says.

Spinning wheels and squished air

Other engineers are exploring mechanical storage methods. One device is the flywheel, which employs the same principle that causes a bike wheel to keep spinning once set into motion. Flywheel technology uses electricity to spin large steel discs, and magnetic bearing systems to reduce the friction that causes slowdowns, explains electrical engineering expert Seth Sanders of the University of California, Berkeley. “The energy can be stored for actually a very substantial amount of time,” he says.

Sanders’ company, Amber Kinetics, produces flywheels that can spin for weeks but are most cost-effective when used at least daily. When power is needed, a motor generator turns the movement energy back into electricity. As the wheels can switch quickly from charging to discharging, they’re ideal for covering rapid swings in energy availability, like at sunset or during cloudy periods.

Each flywheel can store 32 KWh of energy, close to the daily electricity demand of an average American household. That’s small for grid applications, but the flywheels are already deployed in many communities, often to balance fluctuations in renewable energy. A municipal utility in Massachusetts, for instance, has installed 16 flywheels next to a solar plant; they supply energy for more than four hours, absorbing electricity during low-demand times and discharging during peak demand, Sanders says.

A different kind of mechanical facility stores electricity by using it to compress air, then stashes the air in caverns. “When the grid needs it, you release that air into an air turbine and it generates electricity again,” explains Jon Norman, president of the Canada-based company Hydrostor, which specialises in compressed-air storage. “It’s just a giant air battery underground.”

Such systems usually require natural caverns, but Hydrostor carves out cavities in hard rock. Compared to batteries or flywheels, these are large infrastructure projects with lengthy permitting and construction processes. But once those hurdles are passed, their capacity can be slowly scaled up by carving the caverns more deeply, at pretty low additional cost, Norman says.

In 2019, Hydrostor launched the first commercial compressed-air storage facility, in Goderich, Ontario, storing around 10 MWh — enough to power some 2,100 homes for more than five hours. The company plans several much larger facilities in California and is building a 200-MW facility in the Australian town Broken Hill that can supply energy for up to eight hours to bridge shortfalls in solar and wind energy.

Storing energy as heat and gas

Around the world, there are efforts afoot to make use of excess renewable electricity by using it to heat up water or other heat-storing materials. This can then provide climate-friendly warmth for buildings or industrial processes, says Katja Esche of the German Energy Storage Association.

Heat can also be used to store energy, though that technology is still being developed. Energy storage and systems expert Zhiwei Ma of Durham University in the United Kingdom recently tested a pumped thermal energy storage system. Here, the main energy-storing process occurs when electricity is used to compress a gas, like argon, to a high pressure, heating it up; electricity is generated when the gas is allowed to expand through a turbine generator. Some experts are skeptical of such thermal storage systems, as they supply up to 60% less electricity than they store – but Ma is optimistic that with more research, such systems could help with daily storage needs.

For even longer-duration storage – over weeks – many experts put their bets on hydrogen gas. Hydrogen exists naturally in the atmosphere but can also be produced using electricity to split water into oxygen and hydrogen. The hydrogen is stored in pressurised tanks and when it reacts with oxygen in a fuel cell or turbine, this generates electricity.

Hydrogen and its derivatives are already being explored as fuel for ships, planes and industrial processes. For long-duration storage, “it looks plausible that that would be the technology of choice,” says energy expert Wolf-Peter Schill of the German Institute for Economic Research who coauthored a 2021 review on the economics of energy storage in the Annual Review of Resource Economics.

The German energy company Enertrag is building a facility that uses hydrogen in both ways. Surplus energy from the company’s 700-MW solar and wind plant near Berlin is used to make hydrogen gas, which is sold to various industries. In the future, about 10% of that hydrogen will be stashed away “as an emergency backup measure” for use during weeks without sun or wind, says mechanical engineer Tobias Bischof-Niemz, who is on Enertrag’s board.

The idea of using hydrogen for electricity storage has many critics. Similar to heat, up to two-thirds of the energy is lost during reconversion into electricity. And storing massive quantities of hydrogen over weeks isn’t cheap, although Enertrag is planning on reducing costs by storing it in natural caverns instead of the customary pressurised steel cylinders.

But Bischof-Niemz argues that these expenses don’t matter much if hydrogen is produced from cheap energy that would otherwise be wasted. And, he adds, hydrogen storage would be used only for Dunkelflauten periods. “Because you only have two or three weeks in the year that are that expensive, it works economically,” he says.

A question of cost

There are many other efforts to develop longer-duration storage methods. Cost is key for all, regardless of how much is paid for by governments or utility companies (the latter typically push such costs onto consumers). All new systems will need to prove that they’re significantly cheaper than lithium-ion batteries, says energy expert Dirk Uwe Sauer of Germany’s RWTH Aachen University. He says he has seen many technologies stall at the demonstration stage because there’s no business case for them.

Developers, for their part, argue that some systems are approaching that of lithium-ion batteries when used to store energy for eight hours or more, and that costs will come down substantially for others when they are manufactured in large volumes. Maybe many technologies could, ultimately, compete with lithium-ion batteries, but getting there, Sauer says, “is extremely difficult.”

The challenge for developers is that the market for long-duration technologies is only beginning to take shape. Many nations, such as the US, are early in their energy transition journey and still lean heavily on fossil fuels. Most regions still have fossil-fuel-powered plants to cover multiday doldrums.

Indeed, Hittinger estimates that the real economic need for long-duration storage will only emerge once solar and wind account for 80% of total power generation. Right now, it can often be cheaper for utilities to build gas plants – fossil fuels, still – to ensure grid reliability.

One important way to make storage technologies more economical is a carbon tax on fossil fuels, says energy systems researcher Anne Liu of Aurora Energy Research. In European countries like Switzerland, utilities are charged up to about $130 per metric ton of carbon emitted. California grid operators, meanwhile, have spurred storage development by requiring utility companies to ensure adequate energy coverage, and helping to cover the cost.

Market incentives can also help. In the Texas energy market, where electricity prices fluctuate a lot, electricity customers are saving hundreds of millions of dollars from the build-out of lithium-ion batteries, despite their costs, as they can store energy when it’s cheap and sell it for a profit when it’s scarce. “Once those power markets have incentive, then the longer-duration batteries will be more viable,” Liu says.

But even when incentives are there, the question remains of who will foot the bill for energy storage, which isn’t considered in many cost projections for transitioning the grid off fossil fuels. “I don’t think there’s been enough time spent studying how much these decarbonisation pathways are going to cost,” says Gabe Murtaugh, director of markets and technology at the nonprofit Long Duration Energy Storage Council.

Without interventions, Murtaugh estimates, California customers, for instance, could eventually see a threefold increase in utility bills. “Thinking about how states and federal governments might help pay for some of this,” Murtaugh says, “is going to be really important.”

Saving costs and resources

Cost considerations are prompting experts to also think of ways to reduce the need for storage. One way to strengthen the grid is building more consistently available forms of renewable energy, such as geothermal technologies that draw energy from the Earth’s heat. Another is to connect the grid over larger regions — such as across the US or Europe — to balance local fluctuations in solar and wind. Ensuring that storage technologies are as long-lived as possible can help to save costs and resources.

So can being smarter about when we draw electricity from the grid, says Seth Mullendore, president of the Vermont-based nonprofit Clean Energy Group. What if, rather than charging electric cars when getting home from work, we charged them at midday when the Sun is blazing? What if we adjusted building heating and cooling so the bulk would happen during windy periods?

Mullendore’s nonprofit recently helped to design a program in Massachusetts where electricity customers could sign up to get paid if they responded to signals from their utilities to use less energy – for instance, by turning their air-conditioning down or delaying electric car charging. In a smart grid of the future, such tweaks could be more widespread and fully automatic, while allowing consumers to override them if needed. Governments could encourage programs by rewarding utility companies for designing grids more efficiently, Mullendore says. “It’s much less expensive to have people not use energy than it is to build more infrastructure to deliver more energy.”

It will take careful thought and a worldwide push by engineers, companies and policymakers to adapt the global grid to a solar- and wind-powered future. Tomorrow’s grids may be studded with lithium-ion or sodium-ion batteries for short-term energy needs and newer varieties for longer-term storage. There may be many more flywheels, while underground caverns may be stuffed with compressed air or hydrogen to survive the dreaded Dunkelflauten. Grids may have smart, built-in ways of adjusting demand and making the very most of excess energy, rather than wasting it.

“The grid,” Meng says, “is probably the most complicated machine ever being built.”

This article was originally published on Knowable Magazine.

Pervez Musharraf and the Iran-Pakistan-India Pipeline Adventure: An Account by Mani Shankar Aiyar

‘What I thought would be a courtesy call of ten to fifteen minutes extended to over an hour as the president asked further questions about our assessment of the actual reserves in the Daulatabad gas field in Turkmenistan…’

The following is an excerpt from A Maverick in Politics: 1991-2024, by Mani Shankar Aiyar, published by Juggernaut. Paragraph breaks have been introduced for ease of reading.

My Cambridge friend, Foreign Minister Khurshid Kasuri, arranged for me to pay a call on President Musharraf, who had just returned from Oman, where he had discussed the prospects for a possible underwater gas pipeline between Oman and Gwadar in Pakistan. I, therefore, opened with a question about his Oman visit.

The president airily dismissed my question, saying an underwater pipeline was a pipe dream, not technically feasible. Much more important were the overground gas pipelines from Iran and Turkmenistan, he said, adding that so long as Afghanistan remained disturbed, the only immediately feasible option was an overland pipeline from Iran to Pakistan, extendable to India, if India wanted.

A Maverick in Politics: 1991-2024, Mani Shankar Aiyar, Juggernaut, 2024.

What I thought would be a courtesy call of ten to fifteen minutes extended to over an hour as the president asked further questions about our assessment of the actual reserves in the Daulatabad gas field in Turkmenistan, which the Asian Development Bank (and the US oil giant, Bechtel) had identified as the principal source of gas supplies. I replied that our experts too were sceptical of Daulatabad’s potential, but if we were to extend Turkmenistan–Afghanistan–Pakistan–India (TAPI) to Uzbekistan, landlocked and Russia-locked with abundant reserves, making TAPI into UTAPI, the issue of supplies could be resolved.

Indeed, I went on, why not also include Kazakhstan, which had struck quantities of hydrocarbons in the Caspian basin to extend UTAPI to KUTAPI, then on to Astrakhan on the Caspian Sea in the Russian Federation to convert KUTAPI into RUKUTAPI. I triumphantly ended my oration by saying that we should also rope in Azerbaijan, thus ending with ARUKUTAPI!

Musharraf smiled and said he thought that might be feasible as ‘the vowels and the consonants have fallen into place’! He then asked Kasuri to get this studied. I came away feeling rewarded, as my ministry might yet be a major beneficiary of the growing détente between Pakistan and India, symbolized by the back-channel talks on Kashmir the two leaders had initiated through trusted personal envoys.

With the Iranian oil minister scheduled to be in Islamabad in the next few weeks to discuss the IPI, and the Pakistan minister Jadoon having been sounded on an early visit to New Delhi, possibly just a month later, and President Musharraf having given his ‘full backing’ to the project, working groups had been formed to tackle the technical and security aspects of the proposal. This, I said, showed ‘there has been positive forward movement’ and ‘milestones put in place’.

I thus felt I had good reason to be upbeat at the press conference I addressed in Islamabad at the conclusion of my visit. I said, ‘We have signposted the way forward. We can smile with confidence.’ I affirmed my long-held belief that what was needed was for the two countries ‘to have a stake in each other’s economies’. I said Pakistan and India were of the view that the IPI was ‘technologically and economically’ more viable than other options, so other options (such as TAPI) should be regarded as ‘additional’ to IPI, not alternatives.

On the question of security, I said, ‘We have now moved from the stage of asking questions about security to addressing security concerns in a serious and sincere manner.’ As for US objections, I stuck to my line that ‘we are sensitive to their concerns, and we trust they are aware of our requirements’.

With that perspective in mind, I went on to Tehran. The meeting opened with the Iranian oil minister, Bijan Namdar Zangeneh, saying he had heard that I had been ‘plotting’ with Pakistan against Iranian interests. I hastened to assure him that the rumour could not possibly be true but, yes, as Pakistan and India were buyers, it was necessary for us to coordinate our offer on prices. Zanganeh seemed reassured. At any rate, the meeting went forward in a harmonious and constructive manner.

The note of caution I heard from our ambassador, K.C. Singh, was not to rely on word of mouth with Iranian elections in the offing. For my part, I felt satisfied at having carried out my mandate from the cabinet. Meanwhile, and almost at the same time that I was in Pakistan and Iran, the prime minister and the External Affairs Minister Natwar Singh were in Washington, DC, visiting with US President George W. Bush and Secretary of State Condoleezza Rice. From what I have been able to gather, the US leaders dangled the prospect of a civil nuclear deal, provided India called off negotiations on the IPI.

In early July, I was in Turkey, nominally to attend a large gathering of petroleum experts, but my main objective was to visit Ceyhan, the terminal point of the Baku–Tblisi–Ceyhan (BTC) oil pipeline, whose point of commencement, Baku, I had already visited. I needed to get a fix on how BTC had ensured the security of its long oil pipeline that lay close to the highly disputed flashpoint of Nagorno-Karabakh and the sensitive border points of Nakhchivian and Gegharkunik, which witnessed repeated armed clashes amounting to war between Azerbaijan and Armenia.

Also read: A Profile in Courage

The pipeline also lay close to terrorist and armed uprisings in Abkhazia and South Ossetia, troubled southern provinces of the Russian Federation. Its entire route through eastern Turkey to the port of Ceyhan lay in Turkey’s insurgency-ridden Kurdish areas. How had the BTC been immunized against terrorist disruption of oil supplies? That, it seemed to me, was a key question to be answered as we went forward with the IPI.

Fortunately, I had found an Indian, Shashi Mukundan, working for BP, perhaps the most important of the BTC partners, whom I had first consulted in Baku and now found in Ceyhan. His answer was simplicity itself. He said they had worked on the legal safeguards for six times longer than it had taken to lay the pipeline. That was when safeguards had been written into the highly detailed agreements before work on the pipeline began.

I was surprised to receive in Istanbul a call from the prime minister’s principal secretary asking me to report to the PM the minute I got back to Delhi. I was in for the coldest shower I have ever taken. The PM asked me to go slow on the IPI, saying he thought the technological problems were overwhelming and he did not know where we were going to find the required finances.

I protested that the three countries between them had plenty of experience in laying pipelines and, in any case, I had been
approached by Rosneft and another Russian private party, and even Halliburton Dubai, offering to provide technical assistance, even take up the project, if needed.

As for finances, the estimated amount was in the region of $3-4 billion and could be found in the treasuries of the three countries and the internal resources and creditworthiness of the participating commercial entities, state-owned and private. The PM mentioned neither the US nor ILSA, but it would have taken a child to spot that the stumbling block was US objections.

I had to sit it out, but working group meetings went on while I was minister under the joint chairmanship of Petroleum Secretary
S.K. Tripathi and Dr M.H. Nejad Hosseinian, the Iranian deputy minister of the new Iranian government (which had ushered out my
friend Zanganeh). The India–Iran special joint working group, set up in my predecessor’s time, met on 28–29 December 2005. And took a number of far-reaching decisions, including those relating to the ‘project structure’, the ‘framework agreement’ and the ‘gas price structure’.

It was further agreed that there would be a tripartite meeting (which would need cabinet approval) in February 2006 and an itemized roadmap for further meetings in the quarter January–March 2006. But I was out of the ministry at the end of January and never learned whether the talks had gone forward. In any case, the IPI now stands shelved. Twenty years later, we are where we were.

When in February, a Sui gas delegation from Pakistan arrived after I had been dropped from the ministry, I had them over for a very cordial, amiable, informal dinner at my home.

Thus ended the IPI, with a whimper rather than a bang.

Mani Shankar Aiyar is a former Union minister and civil servant.

Adani Solar Deal: Andhra Leaders Overruled Officials’ Concerns to Greenlight Project

The $490-million annual contract, signed in late 2021, has sparked questions about rushed approvals, potential financial strain on the state and alleged corruption.

New Delhi: A controversial solar power deal in Andhra Pradesh involving billionaire Gautam Adani’s renewables company is currently under the spotlight after US prosecutors indicted Adani and seven others for alleged bribery and securities fraud. The $490-million annual contract, signed in late 2021, has sparked questions about rushed approvals, potential financial strain on the state and alleged corruption.

The contract was finalised in just 57 days – a timeframe energy experts and former regulators describe as unusually fast. Documents reveal that political leaders in Andhra Pradesh overruled concerns raised by finance and energy officials to greenlight the agreement, Reuters reported. The deal, which spans 7,000 megawatts, could see as much as 97% of the energy supplied by Adani Green, the renewable energy arm of the Adani Group conglomerate.

A deal pushed through in record time

The Solar Energy Corporation of India (SECI), a federal agency tasked with developing renewable energy, first approached the Andhra Pradesh government on September 15, 2021, with a proposal to sign India’s largest renewable energy contract. SECI’s letter did not name the supplier, but at the time, Adani Green was publicly known as the largest contractor for SECI.

Within a day, Andhra Pradesh’s 26-member cabinet, led by then-chief minister YS Jagan Mohan Reddy, granted preliminary approval for the deal. The Andhra Pradesh Electricity Regulatory Commission followed suit, clearing the agreement by November 11. By December 1, the state signed a procurement deal with SECI, committing to a 25-year contract for solar power priced at Rs 2.49 per kilowatt-hour.

Allegations of bribery and legal fallout

US prosecutors allege that Adani and other defendants offered $228 million in bribes to an unnamed Andhra Pradesh official to facilitate the deal. The indictment accuses the defendants of directing the state’s power distribution companies to purchase the solar power supplied by Adani Green.

The Adani Group has dismissed the allegations as “baseless,” while Adani Green declined to respond to Reuters queries about the corruption claims. SECI stated that states and their regulators decide how much power to purchase but did not address further questions.

Reddy, who lost power in this year’s elections, denied any wrongdoing in a November 28 statement, claiming the deal aimed to provide free power to farmers. His office declined to comment further, Reuters reported.

Concerns over financial impact

Documents and interviews reveal that the Andhra Pradesh finance and energy departments advised against the deal, citing falling solar prices and the likelihood of cheaper agreements in the future, according to the Reuters report. The finance department also questioned the contract’s 25-year duration, given that power supply was scheduled to begin only in 2024. Treasury officials suggested that Andhra Pradesh had leverage as the buyer and could secure better terms.

These concerns were dismissed during a cabinet meeting on October 28, 2021. The minutes note that the cabinet “duly overruled” the finance department’s recommendations without substantial discussion.

A recent analysis by the N. Chandrababu Naidu government found that additional taxes and duties could inflate costs by 23%, pushing the state’s annual payments to Adani Green even higher.

Questionable decision-making

Then-Energy Minister Balineni Srinivasa Reddy told Reuters that he was unaware of the proposal until late on September 15, 2021, when he received a call seeking his signature. He said he was rushed to approve the file without adequate time to study the matter. “Never before” had he been so rushed to approve files, he said, adding that he was unaware Adani was the supplier.

By October 21, the Andhra Pradesh Power Coordination Committee, tasked with evaluating the deal, recommended it proceed. Seven days later, the cabinet officially committed to the agreement, overriding objections from finance and energy officials.

Also read: Gautam Adani as Narendra Modi’s Elon Musk?

The state treasury is now grappling with the financial ramifications. Annual payments for the solar deal, once fully operational, are projected to rival the state’s social security and nutrition programme budgets. The deal risks saddling Andhra Pradesh with financial burdens for decades.

Following the US indictment, Andhra Pradesh’s new government is seeking to suspend the deal, with a decision expected by the end of the year.

SEC Moves Court Linking Adani Fraud Case to Former Azure Director’s Bribery Probe

The letter noted that the criminal case against Adani is based on “substantially the same transactions or events as both this case and the Cabanes Civil Case – namely, the scheme to bribe Indian state officials to secure contracts.”

New Delhi: The US Securities and Exchange Commission (SEC) on Thursday, December 5, filed a notice urging the judge in the civil case against billionaire Gautam Adani for securities fraud to deem it related to the case against former Azure Power Global director Cyril Cabanes, who is accused of violating the Foreign Corrupt Practices Act (FCPA). The move seeks to ensure both cases are assigned to the same court.

Last month, the SEC and the US Attorney’s Office for the Eastern District of New York charged Adani with alleged involvement in what they described as a “massive bribery scheme” involving millions of dollars paid to state government officials. The Adani group has dismissed the allegations as baseless.

Currently, three cases related to these charges are ongoing in the Eastern District Court of New York. This includes a criminal case filed by the Department of Justice against Adani and seven others, alleging conspiracies to commit securities fraud and wire fraud, along with substantive securities fraud.

The SEC has also filed a civil case against Adani and his nephew, Sagar Adani, accusing them of misleading US investors with false assertions during a 2021 debt offering by Adani Green Energy Limited. Separately, a case alleging violations of the FCPA has been filed against Cabanes, a former director of Azure Power, whose stock was traded on the New York Stock Exchange until November 2023. In both the civil cases, summons had been issued for all three defendants, as per court filings.

The SEC’s counsel, Christopher Colorado, submitted a letter on Thursday to judge Vera Scanlon of the Eastern District of New York, presiding over the SEC v. Adani et al case, “to respectfully request that another action pending in this Court, SEC v. Cabanes, 24-cv-08081-BMC (“Cabanes Civil Case”), be deemed related to this action.”

The letter explained that “because this matter and the Cabanes Civil Case rest on overlapping facts (and, we anticipate, overlapping evidence) and arise from the same transactions or events, substantial judicial resources may be saved by both cases being assigned to the same District Court and/or Magistrate Judge, consistent with Division of Business Rule 3(b).”

According to the SEC counsel, Sagar Adani’s lawyer indicated they “do not have any position to share” on this request, while Gautam Adani’s counsel did not respond.

The letter further noted that the criminal case against Adani is also based on “substantially the same transactions or events as both this case and the Cabanes Civil Case – namely, the scheme to bribe Indian state officials to secure contracts that benefitted Adani Green and Azure, and false and misleading statements to investors in Adani Green’s 2021 debt offering concerning that bribery scheme.” Cabanes, identified as a French citizen residing in Singapore, is also a defendant in the criminal case filed in the Eastern District of New York.

The SEC’s initial complaint alleged that, as a director of Azure, Cabanes was involved in a “massive bribery scheme” to secure energy projects for Azure and Adani Green. He served on Azure’s board as a representative of Caisse de dépôt et placement du Québec (CDPQ), a Canada-based pension fund and Azure’s largest stakeholder.

Earlier this year, Cabanes joined MorGen Energy, a hydrogen development firm, as its chief executive officer. According to the Financial Times, Trafigura, the trading company that holds a majority stake in MorGen Energy, announced that Cabanes would “step back from his day-to-day responsibilities” while the matter was under review. Meanwhile, CDPQ stated that it had terminated Cabanes and two other individuals mentioned in the DOJ indictment in 2023.

In response to the allegations, Adani Green Energy, in a regulatory filing with the Bombay Stock Exchange and the National Stock Exchange, emphasised that its directors – Gautam Adani, Sagar Adani and Vneet Jaain – were not charged under the FCPA.

“Mr. Gautam Adani, Mr. Sagar Adani and Mr. Vneet Jaain have not been charged with any violation of the FCPA in the counts set forth in the indictment of the US DOJ or civil complaint of the US SEC,” the company stated on November 27.

This position was echoed by senior counsel and former attorney general Mukul Rohatgi, who held a press conference in Mumbai the same day. Rohatgi highlighted that Gautam and Sagar Adani were not charged in two key counts related to the FCPA, which he described as “more important than the others.” While Rohatgi has represented Adani in several hearings, he clarified that his comments were his personal legal views and not on behalf of the Adani Group.

Also read: Solar Sector in Crisis: US Bribery Charges Against Adani Group, Azure Power Spark Widespread Concern

The charges filed in the US court have triggered significant economic and political repercussions. Reports indicate that the Adani Group’s listed companies initially lost up to $34 billion in combined market value, though their stocks have since regained some of that ground.

Andhra Pradesh, the state at the centre of the bribery allegations, is considering cancelling the power contract with Adani. Kenya had cancelled two infrastructure projects with the Adani Group, while French energy company TotalEnergies announced that it will “not make any new financial contribution as part of its investments in the Adani group of companies” until the accusations have been clarified.

The indictment against Gautam Adani has prompted the US International Development Finance Corporation to review its plan to provide $550 million in funding for a port development project in Sri Lanka, partially owned by the Adani Group.

In Bangladesh, a committee has been formed to investigate power generation contracts signed during the tenure of former Prime Minister Sheikh Hasina, including one with Adani Power.

Meanwhile, the parliament witnessed a complete washout of its first week of proceedings, as the opposition demanded a discussion and an investigation into the charges against Adani, who is widely considered to be close to Prime Minister Narendra Modi.

Modi Govt Waived Key Costs a Day Before Andhra Signed Deal With SECI for Adani Green Power: Report

Analysts have pointed to how SECI has chosen to remain silent – neither initiating an investigation, nor filing a complaint, nor providing any explanation – through multiple allegations.

New Delhi: The Union government waived transmission charges for states that would have bought power from Adani Green and Azure Power in 2021, a report by the Indian Express has found.

The report says that 24 hours after this order from the Union power ministry, the Jagan Mohan Reddy-led Andhra Pradesh government signed a contract with the Solar Energy Corporation of India a public sector company of the Ministry of New and Renewable Energy. SECI, in turn, gave Adani Green and Azure Power a combined 12 gigawatts of power projects.

The SECI is at the heart of the criminal proceedings initiated by the US Department of Justice and the civil case filed by its Securities Exchange Commission, accusing the Adani Group, its chairman Gautam Adani and top officials of involvement in a massive bribery deal of $265 million. The Adani Group has denied the charges.

Analysts have pointed to how SECI has chosen to remain silent – neither initiating an investigation, nor filing a complaint, nor providing any explanation.

‘Rs 1,360 crore a year’

The Adani Group is alleged to have bribed top Indian officials to sign power purchase agreements or PPAs with the SECI despite the obvious expenses associated with such a deal. Andhra Pradesh, one of the states named in the bribery allegations, is now considering cancelling its power contract with Adani.

The Express report notes how a day after the power ministry’s order on November 30, 2021, the Andhra Pradesh government signed a Power Sale Agreement (PSA) with SECI, on December 1, 2021.

The report adds that the Union government’s waiver of the inter state transmission system or ISTS charges is estimated to have resulted in savings of 80 paise per unit, and thus Rs 1,360 crore a year, and Rs 34,000 crore for the period of 25 years for which the contract was signed.

An ISTS is any system used to carry electricity by means of a main transmission line from the territory of one state to another.

Rules ‘relaxed’ in a week

The power ministry order, curiously, also eased two rules that had been put in place in an order issued just a week earlier, on November 23, 2021, according to Indian Express:

“(i) that the project be commissioned before June 30, 2025, and
(ii) that the power from the project be within the renewable power obligation (RPO) of the state. RPO requires states to buy a certain percentage of its total power from renewable sources.”

The report notes that the first 1,000 MW of Adani Green power is expected to be commissioned only in April 2025, quoting an Andhra government source.

When contacted, an Adani Green spokesperson sought to remind Indian Express that it is the DISCOM that “benefits from the ISTS waiver, not the project developer, who only receives a fixed tariff.”

Notably, as The Wire analysed here, Azure Power India’s power purchase agreement was later cancelled and transferred (see para 72, page 73) to Adani Renewable Energy Holding Four Ltd.

The transfer occurred due to prolonged litigation by the Telugu Desam Party (now in government) and the Communist Party of India in the Andhra Pradesh high court, despite SECI’s opposition. SECI had condemned Azure’s exit as against public interest.

How Government Policies and SECI Have Favoured the Adani Group

The emphasis on centralised solar plants, alleged manipulation of the coal market and pressure on states to sign unfavourable PPAs suggest that corporate lobbying has seemingly trumped consumer interests.

New Delhi: India’s aggressive push towards renewable energy – aiming for 450 GW of installed capacity by 2030 – has led to government policies that appear to favour large corporations like the Adani Group over consumers.

Critics argue that the government’s emphasis on large, centralised solar power plants, supported by substantial subsidies from the Ministry of New and Renewable Energy and the Solar Energy Corporation of India (SECI), has marginalised decentralised solar solutions that could directly benefit consumers.

First, decentralised systems empower consumers by giving them control over their energy generation, shifting the power dynamic away from large corporations.

Second, consumers can generate surplus energy and sell it back to the grid, creating a potential revenue stream.

Third, by producing their own power, consumers can reduce their reliance on the grid and potentially lower their energy bills.

E.A.S. Sarma, a former principal adviser (energy) in the national Planning Commission, criticised the government’s emphasis on centralised solar power plants. In a conversation with The Wire, he said this approach is “misguided and ultimately detrimental to consumers”.

“Centralised projects suffer from multiple inefficiencies – they operate at low capacity utilisation rates, demand huge investments in transmission infrastructure and lose substantial energy during transmission,” Sarma said. “These issues make them more costly for consumers and vulnerable to political manipulation. Ultimately, consumers bear the financial burden of all these inefficiencies.”

According to the Thirty-Third Report of India’s Standing Committee on Energy (2022–23), off-grid and decentralized solar power play a critical role in expanding energy access, especially to remote areas. The Committee expressed concern over the discontinuation of two key programs: the off-grid and decentralized solar application program, and the AJAY (Atal Jyoti Yojana) scheme for solar street lights in underserved regions. It called for reinstating these programs and developing a comprehensive approach to off-grid solar promotion. The Committee also proposed using MPLAFD funds to support farmers’ participation in the PM-KUSUM scheme, which aims to transform them into energy producers through solar installations.

Another joint report by the Ministry of New and Renewable Energy and Council for Energy, Environment and Water (CEEW) from July 2023 reveals that Decentralised Renewable Energy (DRE) serves as more than just a last-mile solution for energy access—it’s a vital component of an equitable and inclusive global energy transition. Case studies from Argentina, Bangladesh, Bolivia, and Kenya support this finding.

Even reputed policy and think tanks attest to this. The National Seminar on Clean Energy Access in Northeast by DownToEarth India highlights how DRE strengthens livelihoods in energy-challenged regions. DRE delivers reliable, affordable power where electricity is scarce or unreliable. These systems – especially those with storage capabilities – address the challenges of unstable grids and power outages worldwide. According to IDR, DRE provides a reliable alternative to polluting sources like diesel-powered agricultural pumps in India. A CLEAN report confirms that DRE offers a cleaner, cost-effective solution that boosts economic growth and improves life quality in underserved communities globally.

To make these centralised solar plants viable and profitable, the government has provided substantial subsidies to corporations.

“The Ministry of New and Renewable Energy and [SECI] initiated these subsidies, which come directly from taxpayer money – meaning that citizens themselves are funding the profitability of these corporate-led projects,” Sarma said.

For instance, under the Production-Linked Incentive (PLI) scheme, Adani Infrastructure and Azure Power India received subsidies of Rs 663 crore and Rs 186.4 crore respectively. Notably, Azure Power India’s power purchase agreement was later cancelled and transferred (see para 72, page 73) to Adani Renewable Energy Holding Four Ltd.

The transfer occurred due to prolonged litigation by the TDP and CPI in the AP High Court, despite SECI’s opposition. SECI condemned Azure’s exit as against public interest, stating it violated performance obligations and could affect consumers and renewable energy goals in Andhra Pradesh.

When Azure Power unexpectedly withdrew from the 2,333 MW power project, the Andhra Pradesh government sought to continue the project to maintain committed power supply. After receiving legal approval from the Solicitor General, SECI transferred the project to the Adani Group – another successful bidder in the original tender – maintaining the same terms and conditions instead of starting a new bidding process. This approach preserved existing power purchase agreements and tariffs, though it raised concerns about changes to the original project structure and capacity allocation.

“The need for such substantial subsidies demonstrates the inherently uneconomical nature of these centralised solar plants,” Sarma argued. “These projects are fundamentally inefficient and could not sustain themselves without taxpayer-funded support. This is a clear example of the government prioritising corporate interests over the welfare of its citizens.”

Also read: SECI’s Silence Conspicuous Amid Din of Adani Bribery Allegations

Despite the support, these projects remained economically unsustainable. The high cost of production per energy unit resulted in high selling prices, leading to low market demand.

SECI attempted to address this by allowing companies to voluntarily reduce prices when there were no buyers, hoping that state electricity distribution companies (DISCOMs) would purchase the energy. Over the past two years, 19 or 20 projects with a combined capacity of 9,046 MW have failed to secure customers at their bid tariffs.

“This is where the Ministry of Power stepped in and fostered an environment conducive to corporate manipulation,” Sarma said.

“The ministry has deliberately created scope for corruption in the solar sector by issuing directives under Section 11 of the Electricity Act of 2003. These directives compelled state power utilities to absorb a minimum of 10% of their power requirement from centralised solar power plants set up by corporations like the Adani Group and the foreign-based Azure, irrespective of cost.”

These directives ignored cost considerations and the potential of decentralised solar solutions like rooftop panels, effectively handing over control of the solar sector to corporations. This allowed them to secure lucrative contracts while burdening consumers with higher energy costs, he said.

Sarma extended his criticism beyond the solar sector. He alleged that the Ministry of Power, working with the coal and railways ministries, deliberately created an artificial coal crisis to benefit corporations that owned overseas coal mines. According to him, they engineered supply bottlenecks and transportation constraints, compelling states to purchase expensive imported coal – primarily from companies like Adani.

This manipulation of the coal market drove up energy prices for consumers while significantly increasing corporate profits.

This artificial coal crisis, along with renewable energy obligations, created a captive market for expensive solar energy, ensuring profitability regardless of cost-effectiveness, Sarma said. SECI, a public sector undertaking, played a crucial role by acting as a broker between big corporations like Adani and state DISCOMs. This intermediary position facilitated the sale of expensive solar power while shielding companies from direct consumer resistance to high prices.

“SECI, pressured by the government, compelled states to sign 25-year power purchase agreements,” Sarma said. “These long-term contracts locked states and consumers into buying solar power at fixed prices, even if future technological advances made other energy sources more efficient and cost-effective.”

Also read: Loss of Reputation Is the Real Damage, for Adani and for India

Questions have arisen regarding SECI’s inaction in light of a recent US indictment alleging that the Adani Group used bribery to influence SECI’s decision-making process and secure favourable contract terms. The Adani Group has said that the charges are baseless and has denied them. Speaking at an awards ceremony in Jaipur last week, Adani emphasised the group’s commitment to “world-class regulatory compliance” and asserted that these accusations are unfounded. He maintained that the Adani Group would emerge stronger from this legal process, despite the significant political and market fallout the allegations have triggered in India and internationally.

There are instances where companies other than Adani faced consequences for similar violations.

For example, SECI took action against RPower for submitting fake bank guarantees, resulting in a five-year debarment from bidding on future contracts.

However, the Delhi high court stayed the order because SECI’s grievances were against RPower’s subsidiary, not the parent company itself.

Despite the subsidiary providing a genuine bank guarantee from IDBI Bank, SECI rejected it without explanation. This situation raises concerns about SECI’s potential bias and inconsistent application of rules.

In other instances, Indian authorities have taken action against companies based on findings from foreign regulators. Following a US Department of Justice indictment for violations of the Foreign Corrupt Practices Act, the Indian Railways Board banned Wabtec from participating in future tenders in 2008.

Similarly, a Wall Street Journal article reported a Department of Justice investigation into allegations of corruption related to Walmart’s operations in Mexico, which uncovered evidence of bribery in India. The Central Vigilance Commission launched an enquiry based on this report, although the Delhi high court later set aside the enquiry due to a lack of specific details.

Additionally, the Department of Justice found that CDM Smith employees paid bribes to officials in India between 2011 and 2015. Based on these findings, the National Highways & Infrastructure Development Corporation Limited debarred CDM Smith from future projects.

However, the Delhi high court set aside the debarment because a show-cause notice was not issued to the company.

Moreover, SECI contracts incorporate the Code of Integrity outlined in Rule 175(1) of the General Financial Rules 2017, which prohibits bribery and corrupt practices in government procurement. The US grand jury indictment against Adani, alleging bribery of government officials to secure energy contracts, suggests a violation of this code.

Rule 151 of the General Financial Rules provides grounds for debarring companies from participating in government tenders if they are convicted of offences under the Prevention of Corruption Act of 1988 or if a procuring entity determines they have breached the Code of Integrity. The indictment against Adani could be considered sufficient grounds for SECI to initiate debarment proceedings.

These cases highlight that Indian authorities have, in the past, taken action against companies based on findings from foreign regulators, particularly when those findings relate to corruption and bribery. The severity of consequences has varied, ranging from debarment from future contracts to criminal prosecution.

Furthermore, SECI made repeated amendments to clauses and extended deadlines during the tender process, which appeared to benefit Adani. For instance, SECI allowed extended commissioning timelines of 48 to 60 months for the manufacturing-linked component and introduced lenient definitions of “domestic manufacturing” that enabled companies to import semi-processed components while claiming they were ‘Made in India’.

This suggests a potential double standard that favours the Adani Group.

The emphasis on centralised solar plants, the alleged manipulation of the coal market and the pressure exerted on states to sign unfavourable power purchase agreements all point to a systemic issue where corporate lobbying and influence seemingly trump the interests of consumers and the principles of fair market practices.

Should SECI not act against Adani with the same urgency it has shown in other cases? SECI officials are now under scrutiny in the alleged bribery case, and the organisation faces criticism for potential bias and favouring vested interests.

‘Won’t Allow Power Producer to Blackmail Us’: Bangladesh Looks to Lower Prices in Deal With Adani Group

Muhammad Fouzul Kabir Khan, Bangladesh’s power and energy adviser, said in an interview to Reuters that the country is aiming to renegotiate its deal with Adani Power unless the 2017 contract is voided by the court.

New Delhi: Bangladesh is seeking to significantly reduce prices under its power purchase agreement with the Adani Group unless the contract is voided by a court that has called for a probe into the 25-year deal, Reuters has reported.

The decision comes as Adani Group head Gautam Adani faces charges levelled by US authorities of involvement in a $265 million bribery scheme aimed at Indian government officials. The fallout of the November 21 indictment has been significant, with Andhra Pradesh (the state at the centre of the bribery allegations) rethinking the power deal under a new government, France’s TotalEnergies suspending investments, Kenya suspending all infrastructure contracts, and a market value loss of about $ 33 billion for the group’s companies.

Bangladesh’s caretaker government under Mohammad Yunus has formed a review committee that had recommended engaging an investigation agency to examine seven major energy and power projects, including the Adani (Godda) BIFPCL 1234.4 megawatt coal-fired plan.

Recently, the high court of the country ordered an expert committee to review the 2017 deal signed by government of the ousted prime minister Sheikh Hasina with Adani.

Under the deal, Adani Power supplies power generated from a coal plant in Godda of Jharkhand, to Bangladesh. Reuters notes it meets around 10% of Bangladesh’s electricity demand. The deal has invited significant scrutiny.

“Renegotiate in case of anomalies in the contract. Cancel only in case of irregularities such as corruption and bribery…Both based on the findings of the court-ordered investigations,” Muhammad Fouzul Kabir Khan, Bangladesh’s power and energy adviser, said in an interview to Reuters.

He added that Bangladesh has already flagged some issues, such as the country not benefiting from some Indian tax exemptions to the power plant. These could serve as grounds for renegotiation.

In 2023, the Bangladesh Power Development Board (BPD) had written to Adani Power asking for the agreement to be revised.

Khan told Reuters that the US corruption allegations against Adani might not impact the Bangladeshi deal.

“Because the prices are high, the government has to subsidise,” Khan said. “We would like power prices, not only from Adani, to come down below the average retail prices.”

At Tk 14.02 a unit, Adani charged the highest rate for Indian-generated power to Bangladesh in the 2022-23 fiscal year, the report noted.

“When Adani cut their supply to half, nothing happened,” Khan said, stressing that the country has the ability to generate power for itself. “We will not allow any power producer to blackmail us,” he said.

Megha Engineering Working Like ‘East India Company’ in J&K, Says BJP MLA Amidst Protests

Residents living in the vicinity of the 850 MW hydropower project, which is expected to be commissioned by May 2026, have accused MEIL of violating the conditions laid down in the contract.

Srinagar: A Bhartiya Janta Party legislator has alleged that the Telangana-based Megha Engineering and Infrastructure Limited (MEIL) was working like the ‘East India Company’ while executing the Rs 5,281-crore Ratle power project in Kishtwar that has been marred by protests by locals and workers’ strikes.

The allegation comes days after the construction giant was blamed by Jammu and Kashmir government for posing a “grave threat” to the environment with its “unscientific manner of blasting, drilling, muck disposal and movement of vehicles” which has caused “irreversible damage” to the “flora-fauna and ecosystem” of the eco-fragile region.

Residents living in the vicinity of the 850 MW hydropower project, which is expected to be commissioned by May 2026, have accused MEIL of violating the conditions laid down in the contract which has allegedly caused physical damages to their properties such as houses and shops while the unscientific blasting and dumping of waste has also resulted in a spike in respiratory and other diseases.

‘Have they built any park or hospital?’

In a video which has been shared on social media, Shagun Parihar, the newly elected member of legislative assembly from Kishtwar, can be heard telling a group of aggrieved locals in Drabshalla village of Kishtwar during an evening protest last week that the MEIL has allegedly failed to carry out developmental works and even the locals have not been employed in the project as part of the contract.


“The project is meant for easing the lives of locals and not to harass them. What has the company done for the welfare of people here? Have they built any park or hospital? We will not allow their trend of working like ‘East India Company’ here. If the residents don’t want a dumping yard here, we will shift it to some other place,” she said.

A woman protester could be heard telling the BJP legislator that their houses and shops have developed cracks due to heavy blasting involved in the construction of the project. As The Wire has previously reported, the blasting sends plumes of dust into the skies which has triggered a social and health crisis among the people living in the vicinity of the project.

“It feels as if an earthquake had struck when heavy machines move on the roads,” a woman protester could be heard telling the BJP MLA, “No one cares to listen to us. We are fed up with this project and when we try to raise our voices, female police officials threaten us. What wrong have we done? Did we kill anyone? If the government desires so, we will abandon our homes”.

‘Your recommendations’

In the video, Harpal Singh, the MEIL manager of Ratle project, is heard telling the BJP MLA that the dumping site has been allocated to the company by the government and more than 1,700 locals have been employed in the project, “If the government wants us to close it down, we will do it. We have employed people in the project on your (political) recommendations.”

Singh could not be reached by The Wire for clarification about his remarks on political considerations being used to employ locals in the power project. The Wire also could not reach MEIL officials for comment. Mohinder Kumar, a local leader of National Conference also alleged that since 2022 when the work started on the project, only those connected with the ruling party have been provided jobs.

“It is a big scam which should be investigated by the government,” he told The Wire.

Also read: J&K: Blasting for Ratle Power Project Grips Neighbouring Village in Fear

Warnings and notices

The protests against the Ratle power project took place days after J&K Pollution Control Committee (JKPCC) issued a show-cause to the MEIL, warning of initiating legal action under the Environmental (Protection) Act, 1986 for allegedly flouting the norms while taking up the construction.

“You are also directed to show-cause within 15 days as to why Environmental Compensation on the basis of Polluter Pays Principle and as per the directions issued by the National Green Tribunal for violating the conditions of Environmental Clearance and causing damage to the environment should not be levied upon you”, the notice issued to MEIL chief executive officer reads.

A JKPCC committee also found that open blasting had resulted in air and noise pollution in Drabshalla while the company had also failed to install meters for continuous monitoring of environment  and noise generation which was a violation of the conditions of Environmental Clearance issued by the Ministry of Environment, Forest and Climate Change to the MEIL.

The JKPCC notice came after a memorandum was submitted by the locals of Drabshalla and other adjoining areas to the local administration last month, alleging that the MEIL had flouted the norms in the execution of the project, which is a joint venture between National Hydroelectric Power Corporation (NHPC) and J&K State Power Development Corporation (SPDC).

In September this year, the J&K government’s public works department had warned the MEIL, which has been booked by the central Bureau of Investigation on the charges of bribery, to stop “unauthorised movement of heavy vehicles” on the roads around the project site in Kishtwar while threatening to file a first information report in the case of noncompliance.

The J&K government had set up Ratle Hydroelectric Power Corporation Limited which signed a contract agreement with MEIL for the turnkey execution of the project in 2022. The company was recently in news after it turned out to be one of the two biggest donors in the controversial electoral bonds scheme and the biggest donor of electoral bonds to the BJP at Rs 586 crore.

The company had also donated Rs 195 crore to the Bharat Rashtra Samithi, Rs 85 crore to Dravida Munnetra Kazhagam, besides Rs 37 crore to the Yuvajana Sramika Rythu Congress Party, Rs 28 crore to Telugu Desam Party, and Rs 18 crore to the Congress.