India's power demand set to surge by 80 GW by 2027; experts recommend 50 GW solar expansion

• Published 3 months ago
• By SuperAdmin

New Delhi: As India grapples with rising electricity demand due to rapid economic growth and extreme heatwaves, a University of California study suggests a strategic shift towards solar energy and storage systems could prevent looming power shortages.

According to the India Energy and Climate Center (IECC) at the University, peak electricity demand, which reached 250 GW in May 2024—an increase of 46 GW in just two years—could see an additional rise of 50-80 GW by 2027.

The study warns of potential evening and nighttime shortages, when solar energy production plummets, estimating deficits of 20-40 GW, or about 8-12% of total demand, by as early as 2026. This comes despite plans to bolster the grid with nearly 100 GW of renewable, 28 GW of thermal, and 13 GW of hydroelectric capacity within the same timeframe.

Dr. Nikit Abhyankar, Senior Scientist at IECC, underscored the efficiency of integrating 50 GW of solar power with 15-30 GW of energy storage to offset these shortages. "The good news is that India has achieved record-low solar and energy storage prices recently, making them much cheaper than building new thermal power plants," Abhyankar noted.

Further boosting the economic viability, the Solar Energy Corporation of India (SECI) recorded a solar plus evening peaking storage price of Rs 3.41/kWh earlier this month, with projections indicating a potential decrease to Rs 3/kWh shortly. This trend is supported by global declines in energy storage costs, spurred by reduced material costs and production overcapacity.

To facilitate the necessary rapid deployment, the study advocates for policy interventions including storage mandates, large-scale auctions, and incentives for utilities like viability gap funding. Dr. Amol Phadke, another Senior Scientist at IECC, highlighted the successful low-cost renewable energy models in India and stressed the need for swift construction of resources capable of meeting post-solar hour demands.

Addressing concerns over domestic battery production and supply chains, the study points to a significant global overcapacity in battery manufacturing, sufficient to satisfy India's needs until at least 2030. With India's electricity demand expected to quadruple by 2047, the study positions renewable energy and storage as critical to powering the nation's economic growth sustainably, presenting a unique opportunity for India to lead in clean energy transition.