RMI's Report Highlights Pathway to Flexibility and Sustainability for Delhi’s Power Grid

A recent report titled ‘Transforming Delhi’s Power Grid: A Comprehensive Guide to Enhancing Flexibility’ has been jointly released by RMI, an independent nonprofit organisation, in collaboration with BSES Rajdhani Power Limited (BRPL) and BSES Yamuna Power Limited (BYPL). 

The report offers a strategic blueprint for Delhi to meet its growing electricity demands through the integration of clean energy resources, while ensuring a reliable and affordable power supply for all consumers.

The report emphasises the importance of grid flexibility in the capital, drawing on global best practices to guide the adoption and scaling of necessary measures. Key technologies identified in the report include Demand Response (DR), managed charging of Electric Vehicles (EVs), Battery Energy Storage Systems (BESS), and Virtual Power Plants (VPPs). These technologies are crucial for modernising the grid to meet the city’s evolving energy needs.

RMI projects that by 2030, Delhi could reduce its peak electricity demand by 250-1,350 MW through air conditioning (AC) DR programs. Additionally, managed charging of the city’s electric bus fleet could shift up to 400 MW of demand, while BESS could shift between 500 and 2,500 MW of demand. When combined as VPPs, these measures have the potential to reduce peak demand by nearly 4,000 MW, approximately one-third of Delhi’s projected peak demand in 2030.

The report also highlights significant financial benefits for Delhi’s electricity distribution companies (Discoms) and consumers. The adoption of these grid flexibility measures could generate annual net benefits of up to INR 150 crore from AC DR programs, INR 110 crore from e-bus managed charging, and INR 850 crore from BESS. An integrated VPP approach could provide a combined benefit of up to INR 1,050 crore.

However, the report cautions that meeting Delhi’s rising demand, particularly during periods of sharp peak demand driven by space cooling, will require substantial upgrades to the distribution infrastructure, increased operational and maintenance (O&M) expenses, and potentially higher electricity tariffs.

To unlock the full potential of these flexibility measures, the report calls for supportive policies, regulations, and incentives. It outlines critical steps that Delhi’s Discoms and regulators can take to achieve maximum grid flexibility, ensuring a sustainable and resilient energy future for the city.

This report serves as a crucial guide for stakeholders in Delhi’s energy sector as they navigate the challenges of a rapidly evolving electricity landscape.