Having 24/7 clean energy can save Indian grid operators ₹9,000 crore a year from 2030: Report

At the systems level, emissions will decline by 2.4%, according to the analysis

In a bolstering move for the country’s energy transition, India has adopted ‘round-the-clock’ (RTC) clean energy. In other words, this will allow 24/7 carbon free energy (CFE). 

According to a report by Transition Zero, a UK-based climate analytics non-profit, RTC clean energy on India’s energy grid can lead to significant economic savings for the Indian grid, as it allows least-cost grid planning. 

Having 52 GW capacity by 2030 will be sufficient to meet 70% of RTC clean energy demand, which in turn can meet 5% of the country’s electricity demand. It can potentially save around ₹9,000 crore per annum for Indian grid operators, according to the report.

Reducing costs and emissions

The report also pointed out that since RTC clean energy comes from carbon-free sources such as solar and wind, it will lead to a reduction in emissions. At the systems level, emissions will decline by 2.4%, according to Transition Zero’s analysis.

Furthermore, the report pointed out that the carbon abatement costs are roughly three times cheaper. This can allow companies to procure hourly-matched clean electricity at lower capital costs and at higher operational cost savings.

Having RTC clean energy is generally good as it reduces overall emissions by ensuring that clean energy is available whenever needed — all day, every day. Rather than buying clean energy certificates, RTC clean energy allows actual decarbonisation to happen at all times, not just on paper, according to the analysis. 

It is critical that heavy industries and data centres, whose electricity demand is typically flat all day, adopt RTC clean energy so that their grids have access to clean energy all the time, which will be helpful for their decarbonisation goals, found the report.

According to the report, adopting RTC clean energy will allow India to build a more resilient and sustainable market for renewable energy power purchase agreements (PPAs). If one looks at Europe, the demand for battery storage is spiking, whereas Spain’s renewable energy market has seen a sharp decline in PPA capture rates. By being aware of and circumventing these challenges, this is a chance for India to get ahead in the energy transition race, according to the report.

“Our model shows that in India, commercial and industrial customers can meet 70% of their hourly electricity demand with carbon-free electricity at a cost below that of annual renewable energy matching, while driving greater levels of decarbonisation and providing significant benefits to the Indian electricity system,” said Irfan Mohamed, South Asia Analyst at TransitionZero.

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