India's Power Sector Faces New Challenges Amid Renewable Energy Growth
Evening peak power demand exposes gaps in India’s energy transition: Citi
The Economic TimesImage: The Economic Times
A Citi Research report highlights that India's power sector is shifting from electricity shortages to challenges in ensuring reliable supply during non-solar hours. As peak power demand is projected to rise to nearly 250 GW by 2025, the report emphasizes the need for improved storage and transmission infrastructure to manage the increasing reliance on renewable energy.
- 01India's peak power demand is expected to reach nearly 250 GW by 2025.
- 02The shift in challenge is from energy shortages to reliable supply during non-solar hours.
- 03Increased demand is driven by urbanization, air conditioning, and data centers.
- 04Battery storage and flexible thermal generation are crucial for grid reliability.
- 05Coal-based power generation will remain significant, with 97 GW of additional capacity planned by 2032.
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According to a recent report by Citi Research, India's power sector is transitioning from facing electricity shortages to ensuring reliable energy supply during non-solar hours as renewable energy capacity increases. The report notes that India's peak power demand has surged from approximately 119 GW in 2010 to a projected 250 GW by 2025. This demand growth is attributed to rising urbanization, increased air-conditioning usage, and the expansion of data centers. The report warns that while daytime solar generation has improved overall energy availability, the system is increasingly strained during evening peak hours when solar generation declines. To address these challenges, the report emphasizes the importance of enhancing transmission and storage infrastructure, highlighting the role of battery energy storage systems and flexible thermal generation in maintaining grid reliability. Additionally, it notes that coal-based power generation will still play a vital role, with plans for 97 GW of new coal capacity by 2032. The report underscores the need for timely capacity additions and storage projects to avoid potential power shortages during non-solar hours.
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The increasing peak power demand will require significant infrastructure improvements, affecting energy reliability for consumers, especially during evening hours.
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