Renewables Integration in India

Renewables Integration in India

Abstract This report aims to maximize the amount and value of solar and wind power in India's electricity system. It addresses demand-side flexibility, power plant flexibility, storage (pumped-storage hydro and batteries), and grid flexibility, along with policy, market, and regulatory solutions for the short to medium term. The report focuses on renewable integration in individual states rather than at the national level, as the flexibility challenges, solutions, and priorities vary across states.

Foreword India has made significant strides in providing energy services to its citizens. In less than two decades, 900 million people have gained access to electricity, and the country's energy demand has more than doubled. However, per capita electricity consumption remains only one-third of the global average. To address the challenges posed by this rapid growth in energy demand, the International Energy Agency (IEA) has collaborated closely with the National Institution for Transforming India (NITI Aayog).

Key Findings

1. Policy and Market Solutions: The report suggests policy, market, and regulatory measures to incentivize renewable energy and ease its integration into the energy system.
2. State-Specific Analysis: The study uses two newly developed, detailed power sector production cost models—five-region India Regional Power System Model and the Gujarat State Power System Model—to illustrate flexibility challenges and solutions specific to the Indian context.
3. Challenges and Priorities: The report highlights that while some Indian states already derive a larger share of power from renewable sources than some entire countries, others face challenges in smoothly integrating variable electricity output.
4. Recommendations: The recommendations aim to improve power system flexibility in Indian states by 2030, maximizing the amount and value of solar and wind energy in the power system.

Collaborative Efforts

• NITI Aayog and IEA Collaboration: The two organizations have worked together on joint analysis and research projects, including energy policy analysis and market research, analytical research, and econometric modeling.
• Workshops and Workshops Series: Since 2018, a series of workshops have been organized with states, culminating in a national-level workshop. Starting from 2020, NITI Aayog and IEA have convened series of State-level Power System Transformation Workshops to sensitize state governments and initiate actions for system integration of renewable energy power.

Conclusion The report provides an international framework for renewables integration in India and highlights a full repertoire of power system flexibility solutions. The pathways and solutions for power system transformation and renewables integration are vastly different in India's states and union territories. The findings are relevant to many states and regions in India and across the globe.

Acknowledgments The Energy Vertical at NITI Aayog, led by Dr. Rakesh Sarwal and Rajnath Ram, played a crucial role in collaborating with the Renewable Integration and System Security (RISE) team at the IEA. Both teams were instrumental in bringing out this publication.