Advancing Renewable Energy: Key Insights and Future Directions from Techno-Economic Analysis

February 24, 2024

Nat Vanitchyangkul Tom Reichert Rahul Mehta Jaydeep Sathaye Santoshkumar Kulkarni Neha Bhatia Subhradeb Pramanik Rutuja Tendolkar Rati Bhattacharya Steve Duckworth Jaideep Das Yulia Dobrolyubova Andrew Radcliff Matt Klein Piers Touzel Tatsuya Noma Michelle Elias Parishrut Tripathi Tanvi Katti ARNAB BASU Dr.Karunakaran Nagalingam Venkata Jeetender Yeddanapudi Tufail Khan Arun Venkataraman Vipul Mehra Abhishek Roy Goswami sankalp anand Malcolm Pereira Fatema Kesari Chaitali SHAH Pralabh B. Shipra M Jain Rohit Kumar

In the pursuit of a sustainable energy future, the Techno-Economic Analysis report, jointly developed by the Central Electricity Authority and the Ministry of Power, delves into critical aspects of Renewable Energy-Round the Clock (RE-RTC) supply. This comprehensive analysis examines diverse case studies, highlighting challenges, opportunities, and key recommendations for propelling India towards its 500 GW non-fossil fuel-based capacity target by 2030.

The report meticulously evaluates various scenarios, from 100% availability of RE-RTC to tailored solutions for commercial and industrial customers. State-specific profiles for solar and wind add granularity to the analysis, offering a nuanced understanding of the challenges and opportunities across regions.

Notable challenges include the aggregation of multiple solar and wind generators, predicting demand pattern variations, and securing financing for RE-RTC projects.

However, amidst challenges, opportunities emerge. The declining costs of energy storage present a favorable environment for RE-RTC projects. Government initiatives actively promoting renewable energy further enhance the prospects for sustainable solutions. The report also highlights the potential for excess energy auctioning, creating avenues for economic viability in the renewable energy sector.

Looking Ahead

The crux of the report lies in its forward-looking perspective, advocating for concerted efforts in research and development to accelerate the adoption of storage technology. Emphasizing the role of policy and regulatory frameworks, the report calls for robust measures to incentivize widespread implementation of RE-RTC. The imperative for improved forecasting of renewable profiles is underscored, as it holds the key to facilitating cheaper power availability in exchange markets, thereby reducing market volatility. Research and development for the rapid adoption of storage technology, supported by government initiatives like Viability Gap Funding (VGF) for green hydrogen projects, can accelerate the growth of RE-RTC.

Conclusion

The report's findings coalesce into a promising narrative for the future of renewable energy in India. RE-RTC stands out as a viable option for meeting diverse load requirements while ensuring a reliable power supply. The customization of solutions based on solar and wind profiles, coupled with a keen understanding of demand dynamics, emerges as a pivotal strategy for optimizing RE-RTC projects.

The importance of leveraging generation diversity across states is a key takeaway, as it not only leads to higher RE capacity utilization but also drives down per-unit generation costs. As India navigates the path towards its 500 GW non-fossil fuel-based capacity target by 2030, the insights from this report serve as a roadmap, guiding stakeholders from industry, policymakers, and innovators towards informed decision-making and sustainable energy solutions, with a collaborative effort to shape a cleaner and greener energy future for India.

With 1500+ renewable projects across 100+ countries, ERM has a proven global track record of supporting clients with such innovative solutions in the energy sector and paving the way for our teams to successfully support renewable energy projects involving First and Second of a Kind technologies. Excited about the potential of RE-RTC? Read the full report here. Or connect with me at [email protected] to understand more about the report and our Energy services.