So­lar power and stor­age are ex­po­nen­tial tech­nolo­gies, mean­ing they could grow very rapidly and take stake­hold­ers by sur­prise. The rapid rise is good for In­dia and may help the coun­try leapfrog to clean en­ergy sources to meet its needs. How­ever, the sec­tor

Power Watch India - - EVENTS -

and gear up to plan for this fun­da­men­tal shift. Also, the is­sue is not about coal vs so­lar since In­dia needs to har­ness all its nat­u­ral re­sources for achiev­ing en­ergy se­cu­rity at af­ford­able prices, which at the same time pro­vides rea­son­able re­turn to in­vestors. The govern­ment has also iden­ti­fied the goal of ’Power for all by 2022’, and re­new­able en­ergy sources, such as so­lar, are ex­pected to play an im­por­tant role in this,” said Man­ish Aggarwal, Part­ner and Head – En­ergy and Nat­u­ral Re­sources, KPMG in In­dia.

The re­port high­lights the need for the govern­ment to sig­nif­i­cantly strengthen the plan­ning in­fra­struc­ture and pro­cesses, and em­pha­sises the en­ergy sec­tor’s need for a new plan­ning paradigm which takes into ac­count the ex­pected em­pha­sis on re­new­able en­ergy in In­dia. The Govern­ment needs to fo­cus on sig­nif­i­cant strength­en­ing of the plan­ning in­fra­struc­ture and pro­cesses. The right in­cen­tives for in­vest­ments in grid in­te­gra­tion of so­lar and bal­anc­ing ser­vices should be put in place early. The re­port also recog­nises that sig­nif­i­cant con­ven­tional gen­er­a­tion ca­pac­i­ties are also needed to meet the coun­try’s grow­ing en­ergy de­mand. In fact, con­ven­tional gen­er­a­tors will need to con­trib­ute 60% per cent of in­cre­men­tal ca­pac­ity needs up to 2025, with so­lar con­tribut­ing be­tween 20-25% per cent, and con­sid­er­ing an­other 15% per cent com­ing from wind. How­ever, th­ese ad­di­tional ca­pac­i­ties will need dif­fer­ent at­tributes from the ones we have seen so far. Th­ese at­tributes are re­lated to flex­i­bil­ity in gen­er­a­tion (in terms of ramp rates and min­i­mum thresh­olds) and low fixed cost, and higher vari­able cost pref­er­ence, rather than vice versa.

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