Grid Integration of Wind Energy in India Challenges and Recommendations 1 Coverage Background Grid Integration of Wind Generators - India ◦ Key issues ◦ Recommendations Summary 2 Level of Wind Penetration-Denmark Wind Energy Penetration level Denmark Percentage 50.00% 39.10% 40.00% 30.00% 18.80% 20.00% 10.00% 0.00% Year 2004 Year 2014 Source: Denmark Climate and Energy Ministry • Year 2004: Wind energy only contributed to 18.8% of the overall electricity production • Year 2014: 10 years later the Penetration level has more than doubled to 39.10% • January 2014: In this month alone, power from wind made up 61.4% of the Danes' electricity consumption. • Denmark has shown what can be done!!! 3 Current level of Wind Penetration - India High level of Wind Penetration (Energy Consumption) in States 1. 2. 3. 4. 5. Tamil Nadu (~ 37%) Rajasthan (~26%) Karnataka (~25%) Gujarat (~22%) Maharashtra (~12%) Source: NLDC-POSOCO • Increasing penetration of wind energy - Share of WEGs as Percentage of installed generation capacity Gujarat , Tamilnadu and Rajasthan is 18%, 40.5% and 26% respectively • During windy season, percentage share of Demand met constitutes ~ 20-25% (35% in TN). • With integrated regional Grid operations, intermittency or variability of wind generation needs to be viewed from National perspective. 4 Installed capacity (MW) RE Penetration by 2022 (1/2) 1,20,000 1,00,000 1,00,000 80,000 60,000 60,000 40,000 20,000 22,500 3,000 0 2014 Wind 2022 Solar Govt. plans for 60GW of wind capacity addition by 2022 Govt. plans for 100GW of Solar Capacity addition by 2022 5 RE Penetration by 2022 (2/2) RE Penetration level to go up from present level of 5% to around 18 % by 2022. RE Penetration level (MU terms) Installed capacity (MW) 2,00,000 15,000 1,60,000 18% 1,20,000 1,00,000 80,000 5% 7,500 3,000 22,500 40,000 0 60,000 2014 2014 Wind 2022 2022 Solar Others Assumption for projecting RE penetration level 100% unrestricted energy requirement by 2022 to be met through generation capacity addition (conventional+RE) “no deficit” scenario assumed for projection purpose Capacity of RE other than Wind & Solar assumed to double from present 7500 MW to 15000 MW by 2020 6 Financing Large scale grid integration in India (1/3) Study conducted by PGCIL as part of Green Energy Corridor estimates total Rs. 42,000 Crore investment in transmission for 40 GW RE evacuation. Rs. 20,000 Crore for Intra-State TS strengthening Rs. 22,000 Crore for Inter-State TS strengthening Based on the same, for evacuation of 175 GW RE added by 2022, an estimated around Rs. capacity to be 1,85, 000 Crore of investment in transmission shall be required. 7 Financing Large scale grid integration in India (2/3) Total RE installed capacity by 2022 1,75,000 MW Total RE Investment requirement (estimated) 10,50,000 Cr Additional Investment for RE evacuation investment 1,85,000 Cr Total Investment requirement 12,35,000 Cr Avg.Annual RE Capacity addition for 2015 to 2022 (8 years) 22,000 MW Avg.Annual Investment for 2015 to 2022 (8 years) 1,55,000 Cr 160000 25000 24000 140000 23000 22000 120000 21000 100000 installed capacity MW Investment in Rs Crore Avg. Annual investment requirement 20000 2015 2016 2017 2018 Avg. Investment in RE Plants Avg. Capacity Addition 2019 2020 2021 2022 Avg. Investment in RE Evacuation 8 Financing Large scale grid integration in India (3/3) • Huge Investment required for setting up RE evacuation infrastructure • Responsibility of creating adequate RE evacuation infrastructure should apply on CTU & STUs as is the case with conventional generators • However, with huge investment requirement in transmission, private sector participation should be encouraged through appropriate framework Utilization of NCEF, issuance of green bonds by IREDA like agencies Access to corporate bonds for STUs Dedicated funding should be allocated as part of existing programs, such as the government’s RGGVY or new green funds 9 Aligning Grid Planning for RE Grid strengthening and extension plans yet to give due focus to RE evacuation Central Level and State Level Transmission plans focus on evacuation of conventional sources High time that RE specific transmission plans are formulated Green energy corridor study & CEA perspective plan 2030 – a welcome initiative. RE focused Grid planning at state level is the need of the hour Key recommendations: CEA level planning body to look after RE evacuation planning at national level STUs should prepare a comprehensive 5-year transmission plan State Grid Codes to be amended to include provisions of RE focused transmission plan 10 Increasing Grid Utilisation through Wind-Solar Hybrid (1/3) Hybrid systems optimizes grid infrastructure requirement & associated cost Shared grid infrastructure Better Utilization of grid n/w More stable/predictable power O/P Low – variability related issues Reduction in Grid management issues Maximum Land Utilisation Optimization of resources including cost Wind-solar hybrid 11 Increasing Grid Utilisation through Wind-Solar Hybrid (2/3) Hybrid RE mechanism, can get a more consistent power generation output that can be fed to the grid Eases burden on system operation from difficulty of balancing for infirm power 12 Increasing Grid Utilisation through Wind-Solar Hybrid (3/3) Solar-Wind could be a Win – Win model which provide optimization on multiple accounts and equally address the grid integration issues. GOI to notify policy to encourage Solar-Wind Hybrid systems 13 Enabling Forecasting & Scheduling RRF mechanism provides for forecasting and scheduling requirements Key Issues in implementation of RRF mechanism Centralized Vs Decentralized Forecasting Centralized Vs Decentralized Scheduling No appropriate institution to manage and facilitate the mechanism Extent of socialization of cost of deviation and sharing Incentive for forecasting accuracy Key recommendations: Need Decentralized forecasting and Centralized Scheduling State level Renewable Energy Management Centre (SREMC) Incentive for forecasting accuracy 14 Institutional Set up enabling Forecasting & Scheduling (1/2) Schedule & Point of deviation measurement Regional level/Central level NLDC/RLDC Point of Forecasting & Penalty /Incentive distribution Consolidated Forecast & schedule at State level Consolidated Forecast & schedule at State level States 1 to n SREMC-1 SREMC-n Forecasting Forecasting Scheduling CA-1 Scheduling SLDC Forecasting / Schedule Wind Farm-1, 2..n CA-n SLDC Forecasting / Schedule Wind Farm-1, 2..n Other State pool participants & generation schedule Other State pool participants & generation schedule 15 Institutional Set up enabling Forecasting & Scheduling (2/2) • Features of proposed mechanism Within 30% deviation from schedule socialized among pool participants Deviation > 30% to be borne by Generators However, point of measurement of deviation shall be at SREMC level and not at Pooling station level. This practice reduces the absolute quantum of deviation to a large extent. Deviation penalty / incentive collection/disbursement to individual WTG to be done by CA (Coordinating Agency) Proposed mechanism shall lessen the impact of deviations on the WTGs compared to the present RRF mechanism 16 Summary of Recommendations Private participation in Transmission Infrastructure Development Access to sufficient funds for RE evacuation - for utilization by STU/private Grid Planning to be aligned for RE CEA level planning body to take care RE STUs to prepare comprehensive plans Stage Grid codes to be amended Solar-Wind Hybrid and its benefits to be exploited through suitable policy RRF mechanism to be reviewed to reduce ambiguity and to reduce commercial risk level of WTGs 17 THANK YOU 18