8. System integration of variable renewable energy

Key data

VRE installed capacity (2018*): 64 GW, of which wind 35 GW (9.9% of total installed power capacity), solar PV 28 GW (7.9% of total installed power capacity)

VRE generation (2018): wind 62 TWh (5% of total electricity generation), solar PV 39 TWh (3% of total electricity generation)

Local hotspots: VRE-rich states

Wind leaders: states of Rajasthan, Tamil Nadu, Andhra Pradesh, Karnataka, Gujarat, Maharashtra and Madhya Pradesh with a total of 35 GW (99% of total installed wind capacity) and 61 TWh (99% of total wind generation)

Solar leaders: states of Rajasthan, Tamil Nadu, Andhra Pradesh, Telangana, Gujarat, Karnataka, Maharashtra, Madhya Pradesh, Uttar Pradesh and Punjab with a total of 26 GW (94% of total installed solar capacity) and 36 TWh (93% of total solar generation)

*India collects data based on its fiscal year, which runs from 1 April to 31 March. To align with other countries, the IEA data on India in this report are presented as calendar years. The statement: “VRE installed capacity (2018)” refers to the data from 1 April 2018 to 31 March 2019.

Data sources: MNRE for wind and solar installed capacity and CEA for wind and solar generation.

Overview

As of 2018 India achieved 8% wind and solar generation in its power system, double the share of 4% in 2016. India is therefore in Phase 2 of the International Energy Agency (IEA) Framework for System Integration of Renewables. At the state level, the country’s power system is a very diverse picture. Five states (Karnataka, Tamil Nadu, Rajasthan, Andhra Pradesh and Gujarat) are already facing significant system integration challenges, with solar and wind shares above 15%. In the future, the IEA expects more Indian states to experience ever higher shares of variable renewables. While moving towards a cleaner energy mix, this may create new challenges and those states will be required to make significant changes to how they operate their power systems.

At the same time, the need for flexibility is increasing and can create the opportunity for growth and innovation at the national and state levels in India. Increasingly India will need to broaden the focus from power system flexibility coming from thermal plants (coal) to using all sources of flexibility (renewable power generators, grids, storage and the demand side), based on a thorough analysis of power system transformation and flexibility needs.

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