India May Face Evening Power Shortages by 2027, Says IECC
India could experience significant evening power shortages by 2027, ranging from 20 to 40 gigawatts (GW), even if all planned thermal and hydroelectric projects are completed, according to the India Energy and Climate Center (IECC).
Rapid Growth in Electricity Demand
The IECC report highlights that India’s electricity demand grew by 7% in 2023, far exceeding the global average of 2.2%. Between May 2019 and May 2024, peak electricity demand surged by 68 GW, from 182 GW to 250 GW, marking an annual growth rate of 6.5%. The country met a record maximum power demand of 250 GW on May 30, 2024.
Post-COVID Demand Surge
The post-COVID period saw an even more dramatic increase in demand, with peak levels jumping by 46 GW in just two years, from 204 GW in May 2022 to 250 GW in May 2024. During a recent heat wave from May 17 to May 31, 2024, India’s power system faced significant stress.
Renewable Energy Challenges
Despite having over 140 GW of renewable energy (RE) capacity (excluding large hydro), only 8-10 GW of RE generation was available during evening peak periods in early May 2024.
Policy Recommendations
The report emphasizes the urgent need for policy intervention to avert these shortages. It suggests deploying storage solutions combined with solar power to mitigate risks. Evening peaking RE would be critical for increasing deployment by states and could work alongside technology-neutral procurement obligations for utilities. The report also recommends achieving a solar-plus-storage cost target of Rs 3/kWh by 2027, noting that SECI (2024) auctions are already at Rs 3.41/kWh. Additionally, it advises avoiding inefficient thermal investments and focusing on energy arbitrage and ancillary services to ensure a stable power supply.
Doubts Revealed
IECC -: IECC stands for India Energy and Climate Center. It is an organization that studies and provides information about energy and climate issues in India.
gigawatts -: A gigawatt is a unit of power. One gigawatt is equal to one billion watts. It’s a way to measure large amounts of electricity.
thermal projects -: Thermal projects are power plants that generate electricity by burning fuels like coal, oil, or natural gas. They produce heat, which is then used to generate electricity.
hydroelectric projects -: Hydroelectric projects are power plants that generate electricity using the energy from flowing water, usually from rivers or dams.
solar-plus-storage solutions -: Solar-plus-storage solutions involve using solar panels to generate electricity from sunlight and storing the extra energy in batteries for later use. This helps provide power even when the sun isn’t shining.
policy interventions -: Policy interventions are actions taken by the government to solve problems. In this case, it means creating rules or programs to help manage electricity better and avoid shortages.
