Official: India's rapid roll-out of renewable energy and the mismatch in demand is driving up electricity costs.
A senior official from the Central Electricity Authority said that India's rapid rollout of renewable energy is straining grid operations, and increasing electricity costs because demand has not kept up with it.
In the first half 2025, India's renewable energy output grew at its fastest rate since 2022. In the first half of this year, India achieved 50% of its electricity installed capacity using non-fossil sources. Its target was to add 500 gigawatts of power by 2030.
The Energy and Resources Institute in New Delhi organised a forum. The Chairperson Ghanshyamprasad spoke at the event.
Transmission charges are the costs associated with high-voltage electricity transmission networks. They are usually paid by buyers, which are often distribution companies, to energy producers.
Prasad said that India will likely add more than 40 GW of renewable power this year. He added that the surplus would be difficult to manage without demand.
He said that the mismatch between grid absorption and transmission readiness keeps some renewable projects without power purchase agreements.
Prasad stated that the CEA is working with India Meteorological Department (IMD) to improve localised forecasting of weather for solar and wind power generation.
He also urged for a carefully planned grid integration and stressed the importance of resource adequacy plans at national and state level, which would allow distribution companies to predict future needs and allocate generation resources accordingly.
He said that if this does not happen, "clean energy developers could face situations where they build capacity but it cannot be sold or vacated."
India must continue to invest in coal, nuclear power, hydro and gas, along with renewables, to maintain grid reliability and security, he said.
The official stated that "until we look at the system holistically - planning, execution and grid operation, as well as cost - we will be wrong." (Reporting and editing by Janane Vekatraman; Sethuraman NR is the reporter)
(source: Reuters)