Last Update 10 May 2023

Would RE valleys development coupled with integrated long duration energy storage in India, can be a game changer in achieving 44-45 GW of combined solar & wind capacity additions on yoy basis till 2030?

India has seen an addition of approximately 52 GW in the renewable energy installation over the past five years. From an installed capacity of 73.3 GW observed in 2018, it has reached to a quanum of 125 GW. Contributions from solar energy has been really instrumental in achieving this capacity addition,as the same grew at a CAGR of approximately 23% from a period 2018 till Mar'23. Having said that , the solar energy capacity target (250GW) by 2030 which India is chasing is magmanamous and still 183 GW is needed to achieved in coming seven years. This means India needs a capacity addition of over 26 GW per annum from 2023 to 2030.

Nitika Sharma, VP- Corporate Strategy & New Business, of Eninrac Consulting says “As of March’23, the renewable energy installed capacity of India stood at 125 GW (excluding large hydro). Solar & wind energy being the key contributors, commanding 87% of the total RE capacity portfolio, with share of solar – 67 GW & wind – 43 GW approximately. During the period from Mar’2021-23 the total solar energy capacity in India observed a boost of  approx. 27 GW, adding an average of 9 GW annually. While , in case of wind the capacity addition during the same period was merely 4GW, indicating an average of 1.3 GW annually.  Significantly as India targets to achieve 280 GW of solar & 140 GW of wind by 2030 the tasks seems gargantuan, given the trends. For this massive addition India would need to add ~45 GW of (combined solar & wind capacities) from 2023 to 2030.

Given, achieving such colossal capacity additions would be a big challenge to cater – the need for dedicated transmission corridor would follow in suit. Apart from these couplet of challenges transforming the capacities added into a RTC solution , the energy storage capacities would have to be augmented massively. Therefore, apart from increasing the bid capacities for both solar & wind by SECI to address close to 70-75% of the capacities to be added through sovereign contracts. For the balance capacity - a concurrent mechanism of developing Renewable Energy Valleys could be evaluated with an integrated approach of long duration energy storage systems which could ease the issue of 24×7 power supply to consumers as an offgrid solution without impacting grid stability. Renewable energy valleys are understood as decentralized renewable energy systems that offer a viable and efficient solution to the energy needs of the end consumers. The renewable energy valleys can take diverse configurations, such as peri-urban settings, (agro-) industrial clusters or remote or islanded areas. They can also take the form of either distinct but combined systems or unique poly-generation systems (i.e., in the same infrastructure) to deliver multiple energy carriers from combined renewable energy resources and technologies.”
The Cabinet Committee on Economic Affairs has approved the equity infusion of ₹15 billion (~$201.27 million) in the Indian Renewable Energy Development Agency. The additional equity infusion will help IREDA lend ₹120 billion (~$1.61 billion) to the renewable energy sector, thus facilitating the debt requirement for an additional capacity of approximately 3,500-4,000 MW.

- Communications Team


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