Indian Railways on the Fast Track to Achieve Net Zero Carbon Emissions by 2030
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INDIAN RAILWAYS ON THE FAST TRACK TO ACHIEVE NET ZERO CARBON EMISSIONS BY 2030 ACKNOWLEDGMENT The report has been prepared under UK's Foreign, Commonwealth & Development Office (FCDO), formerly known as Department of International Development (DFID), Power Sector Reforms (PSR) Programme in India. KPMG is the lead service provider of the PSR Programme. The FCDO's PSR Programme would like to thank Mr. R.K. Jain, Executive Director, Indian Railways and Mr. Manish Gupta, Executive Director, Indian Railways for their leadership and guidance in development of this report. The Programme would also like to thank Mr. Sumit Garg, Director, Indian Railways and his team from Indian Railways including Mr. Jivant Awana, Mr. Jagdeep Singh, Mr. Venus Sehgal and Mr. Ravinder Singh, for their support in providing valuable inputs for developing this report. The FCDO's PSR Programme would also like to express its sincere appreciation and gratitude to all the engineers and officials of the Indian Railways who are involved in enabling net-zero carbon emissions for the Indian Railways through various initiatives. FCDO Program Managers Udit Mathur Adritha Subbiah PSR Team Vikas Gaba Abhishek Shah Tanmay Bishnoi Krishna Kant Tiwari Jatin Arora Rahul Kumar Shyam Kumar Gavin McGillivray Head, FCDO India MESSAGE The current COVID–19 crisis and projected climatic changes present many challenges. Every country and organisation around the world increasingly faces a choice, between laying the foundations for sound, sustainable and inclusive growth or locking-in polluting emissions for decades. The Indian Railways is amongst the few Railway systems globally to have taken the former approach, through its commitment to achieving a net zero carbon emissions by the year 2030. For an organisation of the size of the Indian Railways, this commitment is ambitious, and highly laudable. The United Kingdom’s Foreign, Commonwealth & Development Office (formerly known as Department for International Development) and the Indian Railways signed a “Memorandum of Understanding for Collaboration on Energy and Sustainability” in December 2019. This is aimed to enable the Indian Railways to meet its objectives of energy security, consumption efficiency and greening of energy supply. This Report has been prepared jointly, as part of the collaboration, to set out in one place the pathway to achieving the net zero carbon emissions target, the major initiatives currently being implemented and areas identified for further action. It also sets out best practices from other Railways systems in the world. I am sure that this report will help showcase the initiatives of Indian Railways and guide other railway organizations around the world in adopting measures for de-carbonisation. I thank the stakeholders who provided valuable insights and viewpoints, and the entire team of the Power Sector Reforms programme for making this valuable and timely effort. New Delhi December 2020 Gavin McGillivray Minister Counsellor Development British High Commission, New Delhi ABOUT THE ENTITIES About Indian Railways Indian Railways, operated by Ministry of Railways is the fourth largest railway network in the world by network, having more than 7,000 stations. Indian Railways annually transports more than 8,000 million passengers and more than 1,000 million tonnes of freight across the country. Indian Railways is one of the largest electricity consumers in the country having consumed app. 20 Billion Units of electricity in FY 2020. Indian Railways is amongst the few Railways globally having committed to become a “net zero” carbon emissions organisation and has already undertaken several initiatives towards the same. About FCDO's Power Sector Reforms Programme UK's, Foreign, Commonwealth & Development Office (FCDO), formerly known as Department of International Development (DFID), in partnership with the Ministry of Power and Ministry of New and Renewable Energy, Government of India, has approved a GBP 14 million Technical Assistance titled, “Supporting Structural Reforms in the Indian Power Sector” (Power Sector Reforms Programme) to be delivered up to March 2022 at central and state level. The programme has been in operation from November 2016 onwards, and has been working with various beneficiaries in the power sector. KPMG is the lead service provider for the PSR programme and is working with Indian Railways to help Indian Railways move towards its goals of energy security, consumption efficiency and greening of energy supply through structured interventions and focus on specific implementation areas. About KPMG KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. KPMG provides rapid, performance-based, industry-focused and technology-enabled services, which reflect a shared knowledge of global and local industries and experience of the Indian business environment. KPMG has strong engagement in Power and Utilities Sector and has worked with major stakeholders in the public and private sector. TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 23 2. INTRODUCTION 25 2.1 Global commitment to climate change 2.2 India’s commitment to climate change 2.3 Indian Railways contribution to India’s INDC mission 3. APPROACH TOWARDS GREENING OF INDIAN RAILWAYS 29 4. ENERGY PROFILE OF INDIAN RAILWAYS 33 4.1 Current electrification status 4.2 Indian Railways as a Deemed Licensee (DL) 4.3 Energy consumption over the years 4.4 Current status of power procurement 5. GREENING THE POWER SUPPLY 39 5.1 Rooftop solar projects 5.2 Utility-scale RE projects 5.3 Enablers to accelerate deployment of solar power plants by Indian Railways on Railways land 5.4 Pilot projects 6. OPTIMISING ENERGY DEMAND 45 6.1 Enhancing energy efficiency in the traction network 6.2 Enhancing energy efficiency in the non-traction network 7. IMPACT OF GREEN ENERGY INITIATIVES 55 7.1 Reduction in electricity cost for traction network 7.2 Reduction in electricity consumption by non-traction network 7.3 Reduction in emissions 8. CASE STUDIES FROM ACROSS THE WORLD FOR GREENING OF ENERGY SUPPLY 57 8.1 Reduction in electricity cost for traction network 9. WAY FORWARD 59 9.1 Road ahead for Indian Railways LIST OF FIGURES Figure 1 Indian Railways roadmap for net zero carbon emissions Figure 2 Number of countries & percentage of emissions covered by economy-wide targets Figure 3 India’s NDC commitments Figure 4 Indian Railways to be a net zero carbon emissions organisation by 2030 Figure 5 Indian Railways’ roadmap for net zero carbon emissions Figure 6 World transportation energy consumption (quadrillion Btu) Figure 7 Source wise expected energy consumption by the transport sector in India Figure 8 Cumulative reduction in emissions on account of 100% decarbonisation of Railways’ electricity consumption (million tons) Figure 9 Path for decarbonisation of Indian Railways Figure 10 Electrified network of Indian Railways Figure 11 Electricity consumption by traction and non-traction network (MUs) Figure 12 Diesel consumption by the traction network (in million litres) Figure 13 Electricity generated by Indian Railways through RE sources Figure 14 RE technologies for power procurement by Indian Railways Figure 15 Rooftop solar plants installed by Indian Railways Figure 16 Capacity of ground-mounted solar plants from which power procurement is being planned by Indian Railways (MW) Figure 17 Snapshots of some of the key RE projects of Indian Railways Figure 18 Integrated shelters using solar panels at Sahibabad Railway Station Figure 19 Key enablers for harnessing full potential of solar energy on Railways land Figure 20 Proposed solar project along railway tracks in Diwana Figure 21 Schematic arrangement for power supply for ongoing pilot project in Bina Figure 22 Status of procurement from RE based projects (MW) Figure 23 Initiatives undertaken in the area of energy efficiency Figure 24 Initiatives undertaken for reduction of energy consumption related to the traction network Figure 25 Head on Generation (HOG) equipment deployed in coaches Figure 26 Traction Energy Management System Figure 27 3-Phase non-AC, EMU Figure 28 3-Phase AC, EMU Figure 29 3-Phase MEMU Figure 30 Energy efficiency initiatives related to non-traction network Figure 31 Improved illumination at Jaipur Railway station through adoption of LEDs Figure 32 IRICEN Administrative Green Building Figure 33 Initiatives undertaken by Indian Railways to enable Green Buildings Figure 34 Reduction in traction tariff and energy bill of Indian Railways Figure 35 Reduction in non-traction energy consumption (MUs) Figure 36 Reduction in emissions on annual basis due to initiatives towards decarbonisation (in thousand tonnes of CO2) Figure 37 Summary of best practices for enabling energy self-sufficiency in Railways globally LIST OF TABLES AND BOXES Table 1 Missions undertaken for Indian Railways for greening the energy supply and reduction of carbon emissions Table 2 Budgetary provisions for electrification of Railways’ traction network Table 3 List of projects awarded under various tenders by Indian Railways Table 4 List of Railway Buildings awarded with BEE star labels under Office Building Category Box 1 Key Green Initiatives of Indian Railways Box 2 Paris Agreement - India’s Climate Change Pledge Box 3 Signing of MoU between Ministry of Railways and FCDO for collaboration on energy and sustainability Box 4 Rail sections being developed as solar sections Box 5 Adoption of HOG system (Head on Generation technology) by Indian Railways Box 6 12,000 HP electric locomotives