According to a Citi Research report, India’s power sector is reaching the situation where its biggest challenge is no longer electricity shortages, but ensuring reliable supply during non-solar hours as renewable capacity rises rapidly.
The report states that India has significantly increased its renewable energy capacity over the past decade. This has resulted in a reduction of overall power shortages, but the country now faces growing stress during evening and night-time peak demand when solar power generation declines. The report stated: “The challenge is shifting from ‘not enough energy’ to ‘not enough dispatchable energy at the right time’.
According to the report, daytime solar generation and improved hydropower capacity have reduced average energy shortages, but the system is facing increasing challenges during non-solar hours when demand remains high.
The report states that India’s transmission and storage infrastructure will become increasingly critical as renewable energy capacity expands further over the next few years. The report said that battery energy storage systems (BESS), pumped hydro storage, and flexible thermal generation would play a central role in ensuring grid reliability.