The National Electricity Plan, formulated by the Central Electricity Authority (CEA) in India, is a roadmap for the country’s power sector. It is developed every five years under the Electricity Act, 2003, and provides a review of the past five years and outlines the requirements for the next five. The most recent draft, covering the period 2022-27, introduces new concepts and strategies compared to its predecessor and steers away from focusing exclusively on renewable energy.
National Electricity Plan: Background and Evolution
The first National Electricity Plan (NEP) was released in 2007, with subsequent editions published in December 2013 and 2018. These documents evaluate the past five-year periods, outline the capacity needs for the forthcoming five years, and provide forecasts for the next 15 years. They help assess demand, plan capacity addition, and coordinate activities of different planning agencies for optimal resource utilization.
The latest draft foresees a need for additional coal-based capacity, ranging from 17 GW to nearly 28 GW, till 2031-32. This is above the 25GW of coal-based capacity currently under construction. Furthermore, it stresses on the importance of significant investments in battery storage, estimating a requirement between 51 GW to 84 GW by 2031-32. The draft NEP also predicts an increase in the Plant Load Factor (PLF) of coal-fired power plants up to 62% in 2031-32 from the current 55%.
Power Scenario of India: Issues and Challenges
However, India’s power sector faces several challenges. The heavy dependence on 25-year-old coal-fired thermal power plants using obsolete technology raises issues regarding grid stability and power reliability.
While India has focused a lot on renewable generation for meeting capacity additions, managing renewables-dominated grid has been tough due to the lack of clarity on procedures.
A lessening inertia due to the slow development of hydropower and zero-inertia solar generators also threatens the stability of the grid.
Moreover, inadequate funding poses a significant challenge. The estimated fund requirement for Battery Energy Storage Systems (BESS) from 2022-27 is around 14.30 lakh crore. However, the CEA has only apportioned a budget of 8 lakh crore for BESS development over a decade.
Lastly, the absence of evaluation of the ramping rate for thermal plants under different solar generation scenarios can lead to overloading, underloading, or power interruptions.
Solutions and Recommendations
Battery Energy Storage Systems (BESS) based on Lithium-ion batteries present a cost-effective solution. They help balance the grid against load fluctuations and intermittency in generation.
Continuing investments in battery storage technology will help manage the challenges highlighted in the NEP 2022-27. Alongside, exploring alternatives like water-based systems will go a long way in ensuring a stable and reliable power supply.
Increasing the usage of hybrid generation models can facilitate a gradual shift to renewable energy sources while guaranteeing a backup power source when needed. With a more balanced and integrated approach, India can effectively tackle the existing challenges and optimally meet its power needs.
