India has recently reaffirmed its commitment to combat climate change by unveiling updated Nationally Determined Contributions (NDCs) and submitting a Long-Term Low Carbon Development Strategy. These initiatives underscore India’s pursuit of resilient, inclusive, and sustainable growth. The Ministry of Power (MoP) has also taken significant steps in this direction by issuing a trajectory of Renewable Purchase Obligations (RPOs) until 2030.
Under the trajectory outlined by MoP, obligated entities, primarily DISCOMs, are mandated to procure a minimum percentage of electricity from Renewable Energy (RE) sources, starting from 24.3% in 2023 and escalating to 43.3% by 2030. These obligations align with the government’s goal of increasing the share of non-fossil fuel-based power capacity to 50% by 2030.
However, the deployment of RE sources, particularly PV rooftop and distributed solar systems, presents challenges due to their inherent spatial and temporal variability. This variability leads to uneven potential and energy yield across different states in India. Consequently, states may face either surplus or deficit RE potential to meet their annual renewable obligations.
To address these challenges, a comprehensive study supported by the Central Electricity Authority (CEA) and Ministry of New and Renewable Energy (MNRE) has been conducted. The study analyzes various parameters, including RE technical potential, capacity utilization factors, and available flexible resources for power generation within states. Its primary objective is to provide insights into: The RE capacity required to meet RPOs of each state, The RE capacity that deficit states need to procure from other RE-rich states, and The storage requirement to ensure grid balancing amidst the temporal variability of RE.
The study emphasizes the importance of careful RE procurement decisions by deficit states from neighboring states to minimize transmission infrastructure costs. It provides a state-wise capacity addition plan for India, offering valuable guidance to both state governments and RE developers.
India’s ambition to become a developed nation by 2047 necessitates a significant increase in infrastructure and improvements in living standards. Energy requirements are expected to surge as India progresses along this trajectory. However, India has opted for a sustainable path to achieve its developmental goals, with a strong focus on renewable energy.
The Renewable Purchase Obligation (RPO) mechanism has been instrumental in promoting renewable energy deployment in India since 2010-11. Recently, the Ministry of Power amended the trajectory to promote the development of wind and hydro power, in addition to solar energy. Each state is now obligated to meet a minimum of 43.3% of its power demand from renewable sources by 2030.
Despite the effectiveness of the RPO mechanism, its success depends on various factors, including state perceptions of renewable energy competitiveness, grid infrastructure availability, and compliance mechanisms. The performance of states in RPO compliance has been mixed, with only a few achieving full compliance.
The study’s findings highlight the critical role of states in achieving RPO targets and underscore the need for robust capacity planning. Varying capacity utilization factors (CUFs) and available RE potential across states necessitate meticulous planning and coordination. In conclusion, the study provides valuable insights into India’s renewable energy landscape and offers actionable recommendations for policymakers and stakeholders. By harnessing state RE potential and promoting inter-state cooperation, India can accelerate its transition towards a sustainable and resilient energy future.
Please view the full report here for more details.
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