New Delhi: India's reliance on gas-based power to address peak electricity demands faces a significant downturn, according to findings from a recent briefing note by the Institute for Energy Economics and Financial Analysis (IEEFA).
This shift comes amidst India's recent encounter with unprecedented peak power demands, surging to nearly 240 gigawatts (GW) on May 24, 2024, attributed to an intense heatwave gripping the nation.
The briefing emphasizes the growing momentum for sustainable energy options such as renewables and energy storage. Purva Jain, Energy Specialist at IEEFA, discusses the cost inefficiencies that plague gas-based electricity, which are worsened by limited domestic gas sources and rising costs associated with imported liquefied natural gas (LNG). "Gas-based power plants will play a smaller role in handling peak demand, especially as the government investigates novel tendering mechanisms to ensure ongoing access to renewable energy sources", he said.
The government's policy is based on major advances in grid-scale Energy Storage Systems (ESS) and firm and dispatchable renewable energy (FDRE) solutions. These technologies are critical in addressing the inherent variability in solar and wind energy. In fiscal year 2023-24, FDRE tenders made up 17 percent of the 69GW of renewable energy tenders issued, demonstrating a strong push to integrate renewables into the national grid.
Despite the current reliance on gas-fired power to fulfill immediate demand, the trend is changing toward daytime peak periods, when solar power availability is highest.
ALSO READ: Elon Musk's X pays over $50 million to video creators
FIRST Business Portal addressing the potential of business capability of North East Region.
