A review of challenges from increasing renewable generation in the Indian Power Sector: Way forward for Electricity (Amendment) Bill 2020
2022
Debnath, Ramit | Mittal, Vibhor | Jindal, Abhinav
About 70% of India’s current energy mix comprises of coal, and the increase in generation from renewable (RE) sources is affecting the health of the power system. We investigated this effect through the lens of asset utilisation, cost and the social disruption caused by accelerating RE into the Indian Power System. Our review-driven analysis revealed that increasing RE generation is pushing the coal plants to operate in low-loading conditions, causing heightened wear and tear of the plant as they are not suitable for flexible operation. The novel analysis of social disruption due to market parity between RE and coal-based generation presented a holistic view of the political economy of Indian Power System. We found that transition from coal to RE may have extended socio-political ramifications that can potentially disrupt the national economy at an unprecedented scale. Policy implications outlined by our study for the draft Electricity (Amendment) Bill 2020 include scoping a socio-technical framework which supports just energy transition through better financial support mechanisms for flexible operation of coal plants. Focusing on clean-up over shut-down of coal plants and facilitating investments in battery storage technologies and cross-border electricity trade as RE and conventional fuel reach market parity.
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