The recent report released by the Institute for Energy Economics and Financial Analysis (IEEFA), a US-based non-profit corporation, indicates that lockdowns have caused a slowdown in renewable energy installations in India. These developments pose a considerable challenge to meeting the nation’s ambitious targets set for 2022 and beyond.
India’s Current Position in Renewable Energy
India currently ranks 4th globally for installed renewable energy capacity, standing at 5th for solar energy and 4th for wind energy installations.
Solar Energy Capacity: Current Status and Targets
As of 31st July 2021, India has managed to install only 43.94 GW of solar energy capacity. This falls significantly short of the objective to install 100 GW of solar energy capacity by March 2023, divided into 40 GW of rooftop solar and 60 GW of ground-mounted utility scale.
Green Energy Capacity: Additions and Future Goals
During FY 2020/21, only 7 GW of green energy capacity was added. These figures underline the challenge for India to reach its target of achieving 175 GW of renewable power installed capacity by the end of 2022 and a whopping 450 GW by 2030.
Changes in Power Traded Amount
The amount of power traded witnessed an increase of 20% over 2020, 37% compared to 2019, and 30% over 2018. Resulting from this surge in demand, the prices, on average, increased by 38% compared to 2020, 8% more than 2019, and 11% over 2018.
Trends in Coal Stocks
Coal stocks reached a record high of 1,320 lakh tonnes (Mt), surpassing the monthly averages of the previous five years. However, despite this increase, a daily coal stock position analysis demonstrated a “deterioration”, as more plants reported critical supplies.
Suggestions for Meeting Growing Demand
The challenge of managing India’s expanding daily peak demand does not warrant investment in excess baseload thermal capacity. It instead necessitates “flexible and dynamic generation solutions,” including battery storage, pumped hydro storage, peaking gas-fired capacity, and flexible operations of the existing coal fleet. The government is thus advised to speed up the deployment of these sources to balance the grid at lower costs and meet peak demand.
Falling Prices: A Beacon of Hope
With the ongoing fall in prices, these solutions would be cost-effective and provide a safety net against high prices at the power exchange during peak demand.
India’s Initiatives for Renewable Energy
India’s determination to pivot towards renewable energy is reflected in multiple initiatives. These include the National Solar Mission (NSM), the Wind Energy Revolution, the National Biofuels Policy, SATAT, the Small Hydro Power (SHP) program, the National Hydrogen Energy Mission (NHEM), the Production-Linked Incentive (PLI) Scheme, the National Biofuels Policy, and SAYAY.
