Shaping policy to promote renewables in India
Student name: Mr Adil Islam
Guide: Mr Amit Kumar
Year of completion: 2014
Host Organisation: GE India Industrial Pvt. Ltd, Gurgaon
Supervisor (Host Organisation): Ms Sharmila Barathan
Abstract: PART 1 – POLICY RECOMMENDATIONS FOR OPEN
ACCESS IN WIND IN INDIA
The Indian Electricity Sector is marred by a number of challenges like intermittent
power supply, T&D losses, fuel availability and reliability, financial constraints and the most
recent - environment degradation. However, perhaps the biggest challenge faced by the
electricity sector for over a decade is the introduction of competition in electricity supply.
Competition in electricity is poised to solve problems related to poor quality, high tariffs,
intermittency, etc. Under open access, a consumer has freedom to choose a power generator
of his choice across the country, who agrees to provide electricity at the lowest price. This
price is mutually agreed between the consumer and the power producer, and is free from
regulation. However, there are certain charges over and above the mutually agreed price
which the consumer must pay to the licensee whose power network he is using. The net open
access charges depend on the location of consumer and power generator and also on the
particular state’s regulatory authority who sets these charges. For open access to be
successful, the sum total of all charges payable by the consumer should be less than the tariff
which he was traditionally paying to the state licensee (transmission or distribution
company).
As far as wind is concerned, open access can help obligated entities to fulfil their RPOs.
Some states, for example, do not have enough renewable energy resource and hence may fall
short of their RPO targets. However, with open access, they will have provision to purchase
RE power from other states. In the same lines open access helps in REC market development
and can help in lowering of costs of renewables.
In spite of all the advantages that open access has and the huge push from various authorities
for over a decade, open access has still not taken off in a big way in India. There are a lot of
challenges on the ground level which need to be addressed to make open access a reality.
This paper aims to enhance the understanding of open access, its various challenges and
suggests possible ways forward for successful implementation.
PART 2 – POLICY FOR INTRODUCTION OF LARGE SCALE
ENERGY STORAGE IN WIND IN INDIA
Renewable energy can solve some of the world’s most pressing problems - climate change,
energy security, depleting fossil fuels, increasing demand-supply gap etc. In the past few
years, renewable energy has come up in a big way in India, thanks to the facilitative policy
support from the government. Indian is looking forward to a positive renewable energy future
with higher renewable penetration targets. However, Renewable Energy is variable in nature
and increased grid penetration of variable RE can affect grid stability. Thus, Indian grid needs
to become more flexible in order to accommodate the variability of renewable power output.
Grid Intergrated Energy Storage, also known as Large Scale Energy Storage is a promising
technology which can provide flexibility in the grid. The storage device stores extra energy
from renewable power plants when there is low demand and supplies this energy when there
is high demand. Thus, Energy Storage can help cater the problem of variability of RE. In
addition, energy storage can provide a host of solutions for a number of stakeholders like
ancillary services and hence is an attractive solution.
However, Large scale energy storage faces a number of hurdles like inappropriate valuation
of its benefits, lack of policy support, lack of standards, high cost etc. These challenges have
slowed down its deployment. In order to exploit the benefits that energy storage is poised to
bring and in the light of increasing RE penetration targets which can threaten the flexibility of
grid without appropriate flexibility technology in place, it is suggested that Indian
government should introduce facilitative policy and market interventions to promote energy
storage, in line with renewable energy policy for the development of a clean and reliable grid.
