Accelerating green corridors will strengthen our transmission networks.

Highlighting the potential prospects of renewable energy in the power sector, N. Yuvaraj Dinesh, Babu Executive Director of EY India, feels we need to balance the socioeconomic, ecological, and environmental impacts and clean energy production benefits.

Increasing India’s renewable energy capacity

The Government of India approved the updated Nationally Determined Contribution (NDC) to UNFCCC on August 3rd, 2022, which has formally committed to achieving about 50 per cent of cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. The Government has launched numerous schemes and programs to increase India’s renewable energy capacity, including the National Green Hydro Mission (115 GW of renewable power), the Production Linked Incentive scheme for manufacturing solar PV cells and modules, advanced cell chemistry, and battery storage, Indian Railways’ Net Zero target by 2030, the National Biomass Co-firing policy to use biomass such as paddy stubble and cow dung in coal power plants, and so on.

Improving DISCOM’s finances through renewable energy

So far, DISCOMs’ reactions have been mixed. It is abundantly clear that DISCOMs must be active participants in this integration and clean energy transition. DISCOMs will benefit in the long run if they plan to use clean energy power as their primary long-term power supply option and move away from expiring conventional power purchase agreements. DISCOMs are also permitted to implement business models for generating distributed power, which will aid them in this inevitable integration process.

Regulatory support for RE integration and clean energy goals

Key policy and regulatory interventions to achieve the desired RE grid integration for the targeted clean energy goals include a wide range of flexible options, viz., standalone and RE storage (allied services), demand response, flexible operating options for thermal (coal) power plants, Time of Use tariffs (agriculture sector), mandatory DSM across power intensive sectors, regulations for optimised resources planning, incentivisation of deployment of new technologies, R&D, smart grid penetration, acceleration of green corridors for transmission network strengthening, digital power systems including Artificial Intelligence, trading of Green Energy and its attributes, widespread implementation of Green Open Energy Access regulations etc.,

Opportunities ahead

India’s wind generation capacity has been indeed overshadowed by the large-scale deployment of solar projects in the last few years. Key suggestions include the launch of a fresh set of incentives, hybrid projects with storage, Make-in India-based manufacturing, accelerated repowering scheme, updation of wind potential, re-zoning exercise etc. It offers enormous potential for 100 per cent indigenous development and local manufacturing spanning from towers to blades and power electronics.

Reshaping DISCOMs and GENCOs

Net metering from decentralised renewable energy projects, largely from rooftop solar, is on the cusp of redefining the overall operational performance of DISCOMs and GENCOs in India. DISCOMs have options in abundance to lead and fast-track RE deployment through net metering and have an opportunity to collaborate with GENCOs and their consumers to build a scalable distributed power generation portfolio. Digital power systems can ably support DISCOMs to achieve the integration of decentralised RE capacity and contribute to India’s commitment to achieving the NDC-based commitment by 2030.