Round-the-clock renewable power requires reliable generators and storage solutions

There is a growing recognition that round-the-clock power is essential for the planet, and we need responsibility to generate energy and feed it into the grid. Not only do the grid and states need to ensure the reliability of renewable generation, but generators themselves must also play a role. This is positive because, as we seek to manage supply and demand variations, industry growth will be limited. Thus, it is critical to address the storage of round-the-clock power and generators. 

Improving state infrastructure by reducing power losses through trading platforms 

Similarly, the states have tried to improve their infrastructure and reduce losses, but bottlenecks persist. Even after almost 20 years of the Electricity Act 2003, we have yet to reach the promised land. Therefore, we must move away from keeping everything in the United States. This is where markets can play a crucial role by providing platforms like peer-to-peer transactions. These transactions encourage investments in rooftops and small capacities as they significantly increase the capacity addition in that segment. As we progress toward more RTC contracts, the role of exchanges will remain significant. We assure you that more and more balancing capacity will come through to the markets. This is how our part will be in the energy transition.

Net metering is advantageous to renewable energy trading.

Net metering can be a substantial advantage for rooftop solar. However, it is increasingly becoming a significant hindrance to rooftop solar development, as states need to be more accommodating of net metering due to administrative barriers. “Therefore, there is a need to encourage ideas such as peer-to-peer trading, which can promote capacity addition. There are a few pilot projects in the country, and their success is eagerly awaited for further development in this area,” says Akhilesh Awasthy, COO of Hindustan Power Exchange Limited.

Implementing new technologies such as blockchain is expected to aid the success of these projects. There is a lot of focus on pumped storage, which incurs no high additional costs. Through the use of storage plants, we can establish reliability. Although battery storage is becoming more financially feasible, hydrogen technology still requires time to transact on power market exchange platforms fully.

Significant impacts of green hydrogen and electrolysers in power markets

Initially, hydrogen can be used as a sink or a demand for the power market. Therefore, these green hydrogen generators can beneficially use many already-available products to fulfil the requirement. Later, there could be a possibility when the cost of electrolysers, etc., is reduced. However, as of now, it is insignificant in the power market. The role that can be played by green hydrogen as their subsidiary project of participating in the ancillary services market is significant, where the grid operator incurs high costs on a per-unit basis. And that’s where some portion of the capacity of green can make a significant impact, and many benefits can be realised not only by the grid but also by the investors. It is also required to stop pushing everything to the state, particularly the distribution companies already facing a significant financial crisis for many reasons. Efforts are being made from the centre, encouraging efficient operations by the DISCOMs through the UDAY scheme, etc. It is crucial to ensure constant power while also taking care of the obligations of power storage and generators. Furthermore, it’s crucial to cease imposing everything on the government, especially the distribution firms, and to promote efficient operations through legislative initiatives. With these initiatives, the world may have more dependable, environmentally friendly, and economically viable power.