India’s Power Grid Faces Instability Amid Rapid Renewable Expansion and Thermal Constraints

(Source – Indian Express, Section – Explained, Page – 18)

Analysis of the news:

Thermal Power Constraints in Non-Solar Hours

• While India has significantly expanded its renewable energy capacity, with over 165 GW excluding large hydro, coal-based thermal power has only marginally increased to 220 GW.

• Unlike renewables, thermal plants provide crucial baseload support and can be ramped up as needed.

• However, with most thermal plants already running at high capacity, there is little room to compensate for fluctuations in solar and wind generation, leading to potential power shortages.

Projected Power Shortages in Summer 2025

• India’s peak power demand has surged from 169 GW in 2018-19 to a projected 270 GW in 2025.

• The National Load Despatch Centre (NLDC) has warned of significant power deficits during non-solar hours, particularly in May and June 2025.

• The risk of unmet demand ranges from 15-20 GW, with a high likelihood of supply shortfalls, necessitating emergency measures like forced load shedding.

Need for Energy Storage Systems (ESS)

• To address grid instability, the Central Electricity Authority (CEA) has called for co-locating energy storage systems with solar projects.

• However, India’s installed storage capacity remains minimal—less than 5 GW as of 2024.

• While battery energy storage system (BESS) prices have dropped, their deployment has been slow, with India requiring 208.25 GWh of storage by 2030.

• Timely commissioning of storage solutions is crucial to balancing intermittent renewable energy generation.

Challenges in Thermal Power Expansion

• To counter supply shortages, the government is considering invoking Section 11 of the Electricity Act, 2003, to mandate higher operation of imported coal-based plants.

• However, high costs and policy missteps, such as discouraging new thermal projects in the 2017-22 National Electricity Plan, have led to stagnation in coal-based capacity.

• Delays in under-construction thermal plants due to theft, fires, and raw material shortages have further aggravated the situation.

Way Forward

• India must adopt a balanced approach, integrating renewables with adequate energy storage and maintaining sufficient thermal capacity to ensure grid stability.

• Policy adjustments, faster deployment of BESS and pumped storage plants, and strategic use of coal-based power during high-demand periods are essential for managing the growing energy demand efficiently.