Revolutionising Energy: Unveiling the Future of India’s Renewable Energy

The future of green power lies beyond just using it during sunshine or wind hours. It's transitioning towards hybrid storage plants, combining solar and wind with storage, addressing grid stability and catering to high-demand peak hours.

January 02, 2024. By News Bureau

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Renewable energy

National Solar Mission

Mynzo Carbon

SolarArise

Climate change

Battery storage system

In a world grappling with climate change's harsh realities and the imminent breach of the 1.5-degree target, the need for renewables transcends preference to necessity. The evolution of renewable energy in India has been nothing short of extraordinary. Fifteen years ago, wind installations hovered around 13 GW, while solar was almost negligible.

Fast forward to today, where we stand tall at a combined non-fossil fuel capacity of 180 GW, led by 75 GW of solar and 45 GW of wind, surpassing the targets outlined in the original National Solar Mission (NSM) in 2019 of 20 GW by 2022. Boldly, we have set our sights on bigger, much-needed targets of 500 GW of renewable energy before 2030, a pivotal step toward achieving Net Zero.

This meteoric capacity rise is paralleled by a steep price decline. From solar prices of INR 18 per unit in 2019 to the current INR 2.5-3 per unit, offering fixed prices for 25 years, renewables now stand as a significantly cheaper and more stable source, thanks to technological advancements and innovative engineering.

Looking ahead, a robust and sustained momentum in capacity additions is expected, with plans for over 50 GW tenders per annum already in the pipeline. Corporate clients are eager to procure green power through open-access contracts, fuelled by stable policy announcements regarding charges and the economic proposition driven by low prices.

The future of green power lies beyond just using it during sunshine or wind hours. It's transitioning towards hybrid storage plants, combining solar and wind with storage, addressing grid stability and catering to high-demand peak hours. Battery Energy Storage Systems (BESS) costs have plummeted by 90 percent from USD 1500/kWh in 2019 to USD 150-200/kWh today, enabling renewables to generate clean power at under INR 7 per unit during peak times. With further technology advancements on the horizon, BESS cost is expected to further reduce to less than USD 125/kWh.

Coupled with the recent announcement of a INR 9,400 crore viability gap funding (VGF) scheme providing capital subsidies for BESS in the interim, storage installations are bound to grow. However, the key lies in comprehensive storage integration at three places —plant, grid, and consumer end. This synergy heralds true grid balancing and marks a significant leap in renewable energy utilisation. With this, the path is set for the imminent shift towards round-the-clock (RTC) clean power at sub INR 5/unit even in non-sunshine or wind hours. This promises to unleash a green revolution with 24-hour low-cost clean power!

Additionally, the rise of C&I customers signing private contracts for renewable power, coupled with policy clarity on long-term charge stability, propels the market towards a surge. The horizon also teems with potential for green hydrogen, albeit at a higher cost presently. Yet, its anticipated growth mirrors the rapid advancements witnessed by solar, heralding another clean fuel revolution.

Realising these advancements calls for substantial investment exceeding USD 240 billion, sparking discussions at COP28 to mobilise concessional finance from developed nations to boost renewable growth in developing countries.

Looking forward, technological strides in storage, solar, and wind, coupled with accessible long-term finance, position India on a trajectory to surpass the 500 GW renewable target well before 2030. The year ahead holds promise—a realm where sustainable power reigns supreme, revolutionising how we power our world.

- Tanya Singhal, Founder, Mynzo Carbon & SolarArise