New capacity additions could all come from renewable sources like solar, wind and hydro power, but that is only after 2023-24, subject to cost competitiveness and the grid's ability to handle clean energy, says a TERI report.
According to the Energy and Resources Institute report released by Power Minister Piyush Goyal, new power generation capacity could be all renewables beyond 2023-24, based on cost competitiveness as well as the ability of the grid to absorb such a large amount of renewable energy together with battery-based balancing power.
The report indicates that the current installed capacity and the one coming up will be able to meet demand till about 2026, keeping India power sufficient. It estimates that no new investments are likely to be made in coal-based power generation in the years prior to that.
Speaking on occasion, Goyal in a statement said: "Universal access to electricity is one of the primary aims of the government, and meeting demand is a major facet of this initiative."
He further said, "We see India becoming the energy capital of the world. India is also committed to lowering the emission intensity of its development in line with our intended nationally-determined contributions (INDCs) towards the Paris agreement. We are looking at several initiatives towards making solar energy price competitive to coal."
TERI's demand scenario analysis suggests that there will be no new coal-based capacity investment that will be approved till about years prior to that.
Between 2014 and 2024 -- the 10-year window -- if the price of solar and battery reaches the Rs 5 per unit mark, all new capacity additions will be in renewables, it added.
The study indicates that the electricity demand is likely to increase from 1,115 BU (billion units) in 2015-16 to 1,692 BU in 2022, 2,509 BU in 2027 and 3,175 BU in 2030.
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