"India Grants 12 GW in Hybrid and RTC Renewable Energy Projects, According to ICRA Analysis"

In a significant development for India's renewable energy landscape, more than 12 GW of capacity has been awarded through hybrid and round-the-clock (RTC) renewable energy projects, according to a comprehensive analysis by rating agency ICRA.

From 2018 to the present, the country has witnessed the awarding of approximately 12.8 GW of capacity through hybrid and RTC routes. The ongoing fiscal year alone has seen RTC and hybrid tenders for around 4 GW of capacity, with notable projects including the Railways' 960 MW initiative, Solar Energy Corporation of India Ltd (SECI)'s 1200 MW hybrid project, and RTC projects by Rajasthan Urja Vikas Nigam Ltd (RUVNL) and SJVN totaling 600 MW and 1184 MW, respectively.

The increasing share of round-the-clock (RTC) projects in the renewable energy sector is expected to continue, as evidenced by recent tenders issued by SECI in the current fiscal year. Girishkumar Kadam, Senior Vice President and Co-Group Head of Corporate Ratings at ICRA, emphasized the importance of RTC projects in addressing concerns over the intermittent and variable nature of renewable energy, contributing to grid stability in the long term.

While the adoption of RTC renewable energy projects is on the rise, the cost of energy storage will play a crucial role in their future growth. The current capital cost for RTC projects with pumped storage is Rs.6.5-7 crore per MW, while RTC projects with battery energy storage systems command a higher cost at Rs.12-13 crore per MW. Sabyasachi Majumdar, Senior Vice President and Group Head of Corporate Ratings at ICRA, highlighted the current tariff scenario, indicating Rs.6 per unit for pumped storage and Rs.9 per unit for battery storage.

Despite the higher current tariff for RTC projects compared to standalone renewable energy projects, industry experts anticipate a reduction in the capital cost for RTC projects in the next 3-4 years, improving their tariff competitiveness. Recent tenders, such as SJVN's 1184 MW capacity project, have revealed competitive prices, with the lowest discovered price at Rs.4.38 per unit for supplying RTC power.

The debate between pumped and battery storage continues, with pumped storage currently favored due to its lower capital cost, zero import dependency, and longer lifespan of 30 years compared to the battery storage system's maximum lifespan of 15 years. Girishkumar Kadam affirmed that both storage technologies are expected to coexist, aligning with the government's promotion of both pumped and battery storage systems.

According to the Central Electricity Authority (CEA) plan, India aims to have 40 GW of storage by 2030. While policy and regulatory actions are moving in the right direction, practical implementation may take some time, Kadam added.

HBL