Can renewables become mainstream power source in India?

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Renewable energy is
becoming main stream power source in some of the European
countries. The development was because of various support policies
such as subsidy, tax benefits, obligations etc. in some of the
countries such as Spain and Denmark renewables contribute over 50%
of installed capacity. In India Renewables contribute about 12.2%
of installed capacity and about 4% of total electricity generation.
During last three years government has been aggressive specially to
promote solar through JNNSM however the development was been beyond
expectations and the phase 1 targets were over achieved.

INSTALLED CAPACITY

The interest towards renewables is mainly driven
because of pricing cost of conventional power and renewable sources
achieving grid parity. The declining module prices has brought
solar tariff at par with the peaking power price paid by utilities.
While the conventional power price is going to increase year to
year by about 5-10%, there will be declining trend in the price of
solar and wind electricity which is the main reason that market is
having focus towards renewables rather than conventional power
sources. There is another advantage of using renewables as they are
clean in nature which attracts consumers to show case there
commitment towards environment. While renewables are reaching to
grid parity, it is expected that there will not be any government
fiscal support beyond 2017. It is expected that future growth of
renewables beyond 2017 will be through natural demand of
consumers.

TARGET

While renewables grow in future there will be need to
improve the grid infrastructure and country will have smart grid
solutions so that the variability of renewables can be accommodated
in the grid in the comfortable way. We will see that distributed
generation will become major focus area for planning the Indian
electricity system beyond 2017. Many companies will start adopting
energy storage and demand response to optimize their power
procurement. While end user not have any influence on the
variability of the grid, automation and smart grid solutions will
allow the consumers to choose their power supplier based on cost
and reliability.

As
large consumers are becoming more and more concerned about power
procurement, power exchanges will play important role and consumers
will buy their power in real time to optimize their power
procurement. Already about 200 MU of power during 2012-2013 was
transacted through part short term power exchanges. Open
access and third party sale model will take major attention of
large electricity consumers and consumers will buy electricity
through bilateral transactions rather than depending on power
suppliers from distribution companies. It is expected that large
consumers will have electricity sourcing agent deployed on board to
optimize their power procurement. While surplus power is not fed
back to the grid in future large consumers will fed back there
surplus power to grid and optimize their generation .

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