Large-scale solar-plus-storage is the main option left to avoid power shortages as such systems can be deployed much faster than new thermal and hydro assets. Recent gigawatt-scale solar-plus-storage auction results, with a record low price of INR 3.40 ($0.04)/kWh, show that such deployment will be highly economical, according to a new study from the University of California’s India Energy and Climate Center.
From ESS News
India can avoid imminent power shortages and ensure long-term affordable electricity by leveraging its impressive achievements in low-cost clean energy and storage, according to a new study from the University of California’s India Energy and Climate Center (IECC).
Driven by rapid economic growth and extreme heat waves, India’s electricity demand has surged in recent years. Peak demand shot up by 46 GW in just two years, from 204 GW in May 2022 to 250 GW in May 2024.
The IECC study finds that, if this trend continues, peak electricity demand could increase by another 50 GW to 80 GW by 2027.
The power grid is particularly stressed during summer nights, when demand remains high but solar energy generation drops to near zero. Despite plans to add nearly 100 GW of renewable energy generation capacity, 28 GW of thermal, and 13 GW of hydroelectric capacity, by 2027, the IECC study expects India will still face significant nighttime power shortages of 20 GW to 40 GW, or around 8% to 12% of demand, starting as early as 2026.
To meet this shortfall, India needs firm power capacity, in addition to what is under construction, that can be deployed quickly. While new thermal or hydro power plants take five years to eight years to build, solar and storage systems can be constructed in just one year to two years and offer a rapid and effective solution to the looming power crisis.
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