Developing a roadmap to a flexible, low‐carbon Indian electricity system
Summary
The report argues that India's flexibility needs are growing faster than its energy demand, which could impede the deployment of renewable energy if not addressed. It identifies three primary flexibility resources: demand-side response (e.g., agricultural pumping, air conditioning, and industrial loads), improved thermal and hydroelectric powerplant operations, and energy storage (specifically lithium-ion batteries and pumped hydro). The analysis demonstrates that a 'balanced portfolio' combining these resources can reduce total system electricity costs by 5% to 8% and carbon emissions by 8% to 12% compared to a base case. Regional analysis shows that states like Karnataka and Tamil Nadu face more acute ramping and seasonal flexibility challenges due to high solar and wind penetration, while Uttar Pradesh could potentially export flexibility. The report concludes that achieving these goals requires significant reforms in market design, data collection, infrastructure, and business models.
Key insights
- Flexibility needs in India are increasing at a rate significantly higher than total energy demand. Under a high renewable energy scenario, daily balancing needs are projected to grow 6.3 times by 2030, while total energy demand is expected to roughly double.
- A balanced portfolio of demand, powerplant, and storage flexibility options is the most cost-effective approach, reducing total system electricity costs by 5% under current renewable deployment rates and by 8% in a high renewable energy scenario.
- The implementation of a balanced flexibility portfolio can lead to an 8% to 12% reduction in carbon emissions and a decrease in renewable energy curtailment by 82% to 97%.
- Demand-side flexibility represents a significant low-cost resource. By 2030, sectors such as industry, agriculture, and cooling could provide a potential flexible load between 40GW and 180GW, potentially meeting 42% of ramping needs and 18% of daily shifting requirements.
- India's existing coal fleet has the potential to provide 107GW of flexibility capacity, although approximately 20GW of this would require significant investment and plant upgrades.
- The cost of stationary lithium-ion battery storage systems in India is forecast to decline by up to 75% by 2030, with global total costs projected to drop from $587/kWh in 2017 to $142/kWh in 2030.
- Regional disparities in flexibility needs are pronounced. Karnataka is expected to see ramping needs rise to 30% of peak demand by 2030, while Tamil Nadu faces severe seasonal flexibility challenges due to wind generation peaking during the monsoon.
- Uttar Pradesh is identified as a potential exporter of flexibility due to its large industrial base and agricultural energy use, provided that appropriate markets and transmission infrastructure are developed.
- Bihar faces critical supply disruptions and high levels of involuntary load shedding; improving its flexibility is essential for achieving 24x7 power access and reliability.
Cite the original document
- APA
- Udetanshu, Khurana, S., & Nelson, D. (2020). Developing a roadmap to a flexible, low‐carbon Indian electricity system. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/08/CPI-India-flexibility-25-August-2020-full-report-1.pdf
- Chicago
- Udetanshu, Saarthak Khurana, and David Nelson. Developing a roadmap to a flexible, low‐carbon Indian electricity system. Climate Policy Initiative, 2020. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/08/CPI-India-flexibility-25-August-2020-full-report-1.pdf.
- Wikipedia
- {{cite report |last1=Udetanshu |last2=Khurana |first2=Saarthak |last3=Nelson |first3=David |title=Developing a roadmap to a flexible, low‐carbon Indian electricity system |publisher=Climate Policy Initiative |date=February 2020 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2020/08/CPI-India-flexibility-25-August-2020-full-report-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{udetanshu2020developing, author = {Udetanshu and Khurana, Saarthak and Nelson, David}, title = {{Developing a roadmap to a flexible, low‐carbon Indian electricity system}}, institution = {Climate Policy Initiative}, year = {2020}, month = feb, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2020/08/CPI-India-flexibility-25-August-2020-full-report-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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