08 May DO YOU THINK INDIA’S CURRENT POWER DEMAND SITUATION IS GOOD ENOUGH FOR ALL THE CAPACITY BEING BID OUT TO BE ABSORBED BY THE GRID?
India’s GDP has been growing at around 6%-8% in the past two decades. Depending on the growth rate, Indian grid should be absorbing 20-25 GW of renewable energy capacity every year. However, the question is not merely of demand. Grid must also be able to balance demand with the intermittent nature of supply. It is for this reason that MNRE has been keen on storage integrated tenders. The recently auctioned peak power tender has discovered blended tariff of slightly higher than INR 4/kWh. This is a competitive tariff as compared with the base load power plants. As the rates of customs duty and GST are made more favorable, renewable capacity should start acting more and more as base load going forward. Hence, I believe demand situation in the country should not be a hindrance to the growth of renewable energy capacity.