RTC Clean Energy By 2030 To Save Indian grid Rs 9,000 Crore Per Annum

India’s adoption to ’round-the-clock’ clean energy (RTC), can save Indian grid Rs 9,000 crore per annually 2030. 52 gigawatt RE capacity of India by 2030 is sufficient to meet 70% of RTC clean energy demand. Says a new analysis report by TransitionZero. India can add 70% of round-the-clock clean electricity equalling 52 GW by2030 at lower cost compared to annual matching – saving grid operators US$1billion (almost Rs. 9 thousand crore per year).

This 52 GW of capacity is sufficient to meet 70% of participating RTC clean electricity demand, assuming that 5% of India’s national electricity demand in 2030 participates in hourly matching. The system value contribution of a 70% RTC clean electricity portfolio exceeds the cost of annual matching, potentially saving India’s cash constrained grid operators US$1 billion (Rs. 9 thousand crore) per year from 2030.

The 52 GW represents 70% of a hypothetical RTC clean electricity portfolio designed to meet 5% of India’s total national electricity demand. The system value contribution of RTC clean electricity portfolios exceeds the cost of annual matching, since the latter requires more capacity build out. This generates savings of US$1 billion (Rs. 9 thousand crore) for grid operators per year from 2030. At the same time, emissions can be reduced by 2.4% at systems level with carbon abatement costs roughly three times cheaper compared to annual matching. The results also show that companies can drive even greater decarbonisation at matching levels above 70%. At 100% RTC, India-wide system emissions are reduced by 7% compared to annual matching.

RTC clean electricity – also referred to as 24/7 carbon free energy (CFE) – means matching every hour of electricity use with electricity from carbon-free sources. It ensures clean power is actually available when it is needed, all day, every day, instead of buying annual clean energy certificates. This approach helps drive real decarbonisation of the electricity system by encouraging clean energy at all times, not just on paper. This approach is especially important for heavy industries and data centres, whose electricity demand is typically flat around the clock, making hourly clean energy matching essential for their decarbonisation.

TransitionZero’s analysis shows that incentivising RTC clean electricity procurement is essential for least-cost grid planning and can deliver significant savings for India’s grid operators, who play a pivotal role in the country’s electricity sector transformation. It also helps build a more resilient and sustainable market for renewable energy power purchase agreements (PPAs). The growing need for battery storage and demand response is already evident in Europe, where Spain’s renewable energy market has seen a sharp decline in PPA capture rates. By proactively incentivising flexibility solutions, India can get ahead of these
challenges and accelerate its electricity transition.

Irfan Mohamed, South Asia Analyst at TransitionZero, explained: “Our model shows that in India commercial and industrial customers can meet 70% of their hourly electricity demand with carbon-free electricity at a cost below that of annual renewable energy matching, while driving greater levels of decarbonisation and providing significant benefits to the Indian electricity system.”
.
Matt Gray, Co-founder and CEO at TransitionZero, explained: “Our analysis shows round-the-clock clean electricity planning and procurement is a ‘no regrets’ option for India’s energy planners, grid operators, and large corporations. It shows that companies can procure hourly-matched clean electricity at minimal extra cost, and grid operators can save money through least-cost grid planning. In doing so, governments can help deliver the energy transition at the lowest cost.”

Transition Zero, a UK-based climate analytics non-profit, in this new report, has highlighted the need for incentivising round-the-clock (RTC) clean energy, which has the potential to accrue significant savings for India’s grid operators. Transition Zero’s analysis shows that incentivising RTC clean electricity procurement is essential for least-cost grid planning.

At the same time, it says emissions can be reduced by 2.4% at systems level. RTC clean electricity – also referred to as 24/7 carbon free energy (CFE), means matching every hour of electricity use with electricity from carbon-free sources.

The writer of this article is Dr. Seema Javed, an environmentalist & a communications professional in the field of climate and energy