Did Renewable Energy Generation in India Really Soar to 17% in May?
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Synopsis
India's renewable energy generation surged in May and early June, reaching 17% and 19% respectively, as power demand fell amid increased rainfall. This shift signals a strong transition towards sustainable energy sources, bolstered by government incentives for battery storage.
Key Takeaways
- Renewable energy share increased to 17% in May.
- Power demand declined due to heavy rainfall.
- Government supports battery storage initiatives.
- Coal stock levels are significantly high.
- Power prices dropped to zero during solar hours.
New Delhi, June 13 (NationPress) The drop in power demand, combined with ongoing renewable capacity expansions over the past year, led to a significant increase in the share of renewable energy generation in India, reaching 17% in May and 19% in the first 10 days of June. This marks an increase from 13% and 14% during the same periods last year, according to a report from HSBC.
A large base and considerable rainfall have contributed to the decline in power demand. Specifically, power demand and peak demand fell by 4% and 7% in May, and by 1% in the initial days of June.
The abundant rainfall in May has played a crucial role in this trend.
Because of the must-run status of renewables, thermal plants had to reduce their output, resulting in a drop in the plant load factor (PLF) to 65% in May, compared to 72% the previous year.
The report noted that coal stocks at power plants surged to an impressive 61 million tonnes, providing 21 days of demand compared to 17 days last year. This surplus caused power prices during solar hours to plummet to zero on May 25, leading to negligible power deficits for the month.
The government is promoting battery storage solutions to address the intermittency of renewable energy. This includes critical measures to enhance renewable energy uptake and optimize the use of existing coal plants.
A substantial Rs 54 billion in additional viability gap funding (VGF) has been announced for 30 GWh of battery storage. This translates to $21 per kWh in government incentives for new battery storage systems, with 25 GWh allocated for states and 5 GWh for NTPC.
In addition to the existing Rs 37 billion VGF for the current 13 GWh of storage under implementation, the government has also extended the waiver of Inter-State Transmission (ISTS) charges for pumped storage plants (PSP) and co-located battery storage (BESS) for projects commissioned before June 2028. This will expedite the deployment of battery tenders, with nearly 10 GWh of BESS tender capacity awarded since March 2024, as per the HSBC report.
Point of View
The significant increase in renewable energy generation reflects India's commitment to sustainability. The proactive measures taken by the government to enhance battery storage and ensure energy efficiency demonstrate a promising shift towards a greener energy future.
NationPress
14/06/2025
Frequently Asked Questions
What factors contributed to the rise in renewable energy generation in India?
The rise can be attributed to declining power demand and ongoing renewable capacity additions, aided by heavy rainfall.
How does the government's battery storage initiative impact renewable energy?
The battery storage initiative is crucial for managing intermittency, enhancing renewable energy uptake, and optimizing the use of existing coal plants.
What is the significance of the coal stock levels at power plants?
The coal stock levels indicate a surplus supply, which can help stabilize power prices and reduce deficits.
What incentives is the government providing for battery storage?
The government announced Rs 54 billion in additional viability gap funding for new battery storage systems, alongside existing support.
What does the future hold for renewable energy in India?
The ongoing investments and government initiatives suggest a strong trajectory towards increased renewable energy adoption in India.
