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Explainer: Application Process for ALMM Inclusion and Renewal


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					</table><p>After the Wind Energy Purchase Obligation in the Renewable Purchase Obligation rules was introduced, wind installations saw a surge in 2023, adding 2.56 GW of new capacity in the first nine months of 2023, up from 42 GW at the end of 2022.</p>
<p>According to recent data from the Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>), the cumulative wind energy capacity, as of November 2023, stood at 44.56 GW. The country installed 1.93 GW of new wind projects from April to November.</p>
<p><strong>Here are some of the top developments in the Wind Energy Sector in 2023:</strong></p>
<p>In January, MNRE <a href="https://www.mercomindia.com/government-junks-reverse-auction-for-wind-projects" target="_blank" rel="noopener">announced</a> the scrapping of the e-reverse bidding mechanism as a significant move to ensure faster capacity addition for wind energy projects. The Ministry claimed that after its initial success, the reverse bidding process led to a drop in wind capacity as falling tariffs proved unsustainable for developers.</p>
<p>Following its announcement of the tender trajectory for renewable energy projects in April, MNRE <a href="https://www.mercomindia.com/government-bid-solar-wind-fy24" target="_blank" rel="noopener">issued</a> an agency-wise bidding calendar for 50 GW of projects for the financial year 2023-24). The calendar includes a total of 10 GW scheduled to be tendered from May 2023 to March 2024.</p>
<p>The Central Electricity Regulatory Commission (CERC), later in the year, also <a href="https://www.mercomindia.com/ists-charges-waived-solar-wind-projects-commissioned-october-1" target="_blank" rel="noopener">extended</a> the solar and wind projects commissioning deadline to be eligible for the waiver of interstate transmission system (ISTS) charges to October 1, 2023, from June 30, 2023. The ISTS charges waiver will be applicable for 25 years from the commissioning date for the transmission and sale to entities with renewable purchase obligations.</p>
<p>In July, the <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> <a href="https://www.mercomindia.com/bidding-guidelines-wind-power-projects" target="_blank" rel="noopener">introduced</a> new guidelines for the tariff-based competitive bidding process for procurement power from grid-connected wind power projects to boost renewable capacity and meet the distribution licensee’s RPO targets. The guidelines are expected to create a transparent and fair procurement framework through open competitive bidding, ensuring competitive prices and risk-sharing among stakeholders to enhance project bankability and investor returns.</p>
<p><strong>Repowering of Wind Projects</strong></p>
<p>In August, the Parliamentary Standing Committee on Energy <a href="https://www.mercomindia.com/expedite-efforts-repower-old-wind-turbines" target="_blank" rel="noopener">urged</a> MNRE to expedite the approval and implementation of the revised policy on repowering old wind turbines. It recommended replacing the old turbines with advanced, more efficient ones to maximize natural resources and land usage.</p>
<p>In response, MNRE acknowledged the National Institute of Wind Energy‘s estimation of a repowering potential of 25,406 MW for wind turbines below 2 MW capacity. It recalled that a repowering policy was issued in 2016, and a revised policy has been prepared based on stakeholder feedback.</p>
<p>The Ministry’s Wind Energy Division, in December, <a href="https://www.mercomindia.com/mnre-unveils-revised-wind-power-projects" target="_blank" rel="noopener">notified</a> the ‘National Repowering &amp; Life Extension Policy for Wind Power Projects – 2023’ allowing the repowering or replacing of older turbines with more efficient ones, even before the end of their design life, through modifications in components such as gearbox, blades, generator, and controller.</p>
<p><strong>Offshore Wind</strong></p>
<p>There was a renewed focus on offshore wind projects, with the government announcing a series of strategies for their deployment.</p>
<p>In August, MNRE <a href="https://www.mercomindia.com/mnre-strategy-developing-offshore-wind-projects" target="_blank" rel="noopener">formulated</a> three models for developing offshore wind energy projects, especially along the extreme southern and western shorelines of the country, in Tamil Nadu and Gujarat. The Ministry has also issued calls for proposals to conduct surveys on identified offshore wind project sites under the newly formulated models.</p>
<p>Earlier in May, the Ministry of Power had <a href="https://www.mercomindia.com/ists-waived-offshore-wind-green-hydrogen-ammonia" target="_blank" rel="noopener">exempted</a> offshore wind projects commissioned on or before December 31, 2032, either through power purchase agreements or on a merchant basis, from ISTS charges for 25 years from the date of commissioning.</p>
<p>In September, the Ministry <a href="https://www.mercomindia.com/auction-first-offshore-wind-site-february-2024" target="_blank" rel="noopener">announced</a> plans to conduct auctions to allocate offshore wind sites along the Tamil Nadu coastline. These projects are expected to generate power for distribution through various avenues, including open access mode, third-party sale, power exchanges, or internal consumption. The first zone with four sites is expected to be tendered by February 1, 2023. The other zones with three sites would be auctioned sometime during the next financial year.</p>
<p>In December, the Ministry of External Affairs <a href="https://www.mercomindia.com/rules-leasing-offshore-wind-sites" target="_blank" rel="noopener">issued</a> the Offshore Wind Energy Lease Rules, 2023, extending an initial three-year validity on leased areas for offshore wind projects to conduct resource measurements and surveys. The lease period is allowed to be extended by an additional two years. The leased area can range from 25 to 500 square kilometers.</p>
<p><strong>Wind-Solar Hybrid Projects</strong></p>
<p>As the power demand in the country witnesses a surge, <a href="https://www.mercomindia.com/indias-power-demand-rise-sharply-256-gw-2024-25" target="_blank" rel="noopener">peaking</a> at over 240 GW in September, the need for round-the-clock renewables has been on the rise. Wind-solar hybrid projects help resolve the intermittent issues as the solar component generates power only during daylight hours, and the wind component helps generate power mainly during evening/night.</p>
<p>According to <a href="https://www.mercomindia.com/research" target="_blank" rel="noopener">Mercom India Research</a>, the operational wind-solar hybrid project capacity stood at 6,465 MW, with over 31 GW of projects in the pipeline.</p>
<p>According to the Central Electricity Authority (<a href="https://cea.nic.in/?lang=en" target="_blank" rel="noopener">CEA</a>) forecast, the all-India peak power demand is <a href="https://www.mercomindia.com/indias-power-demand-rise-sharply-256-gw-2024-25" target="_blank" rel="noopener">expected</a> to reach 256.53 GW by the financial year 2024-25.</p>
<p><strong>Here are a few major developments in the Hybrid Energy segment during 2023: </strong></p>
<p>In June, MNRE <a href="https://www.mercomindia.com/mnre-extension-solar-wind-hybrid" target="_blank" rel="noopener">granted</a> an extended completion time up to March 2024 for solar-wind hybrid power projects, with bid submission dates falling between March 9 and April 10, 2021. The time extensions have been granted in response to the representations received by the Ministry from state governments and their agencies, which had issued bids with submission dates during that period.</p>
<p>Following wind and solar, the Ministry of Power also <a href="https://www.mercomindia.com/bidding-guidelines-wind-solar-hybrid-projects" target="_blank" rel="noopener">introduced</a> new guidelines for tariff-based competitive bidding for grid-connected wind-solar hybrid power projects in August. The revised guidelines encompass revised bid capacity limits, altered timelines, regulations on power procurement, and penalties for delays. These changes are expected to stabilize and mitigate risks within the renewable energy sector by establishing a structured framework for long-term hybrid power transactions.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/satish-shetty/" class="vcard author" rel="author"><span class="fn">Satish Shetty</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Satish-pic-1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Satish Shetty,</strong> Associate Editor at Mercom India<br />
<a href="https://mercomindia.com/author/satish-shetty/" target="_blank" rel="noopener">More articles from Satish Shetty.</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Satish-pic-1.jpg" width="102" height="102" /><a href="https://mercomindia.com/author/satish-shetty/" target="_blank" rel="noopener"><strong style="color: #00b451">Satish Shetty</strong></a> is an Associate Editor with Mercom India. Prior to Mercom, Satish was a multimedia news producer at Reuters, where he gained experience in digital news media. Satish has his Bachelor of Arts (B.A.) degree in Broadcast Journalism from Limkokwing University of Creative Technology, Malaysia.<br />
<a href="https://mercomindia.com/author/satish-shetty/" rel="noopener noreferrer">More articles from Satish Shetty.</a></div>
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Top Developments that Influenced Wind and Hybrid Power Market in 2023


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					</table><p><strong><a href="https://www.mercomindia.com/ntpc-bids-1-5-gw-wind-solar-hybrid-projects-india" target="_blank" rel="noopener">NTPC has invited bids to set up 1,500 MW of interstate transmission system-connected wind-solar hybrid power projects anywhere in India.</a></strong> The last date to submit the bids online is October 17, 2023. Bids will be opened on the same day. The minimum capacity of each project at one site must be 50 MW. Bidders must submit ₹1.16 million (~$13,939)/MW as an earnest money deposit. A power purchase agreement will be signed between NTPC and successful bidders subject to the signing of a power sale agreement with the state distribution companies for the identified capacity.</p>
<p><a href="https://www.mercomindia.com/india-japan-launch-low-carbon-emission-strategies/" target="_blank" rel="noopener"><strong>The Japan Bank for International Cooperation (JBIC) and the Government of India signed an agreement to establish a $600 million India-Japan Fund to address climate and environmental challenges.</strong></a> The fund will focus on environmental preservation in India, encompassing sectors such as renewable energy, electric vehicles, waste management, and water management projects. The government of India will contribute 49% of the target corpus and JBIC the remaining 51%.</p>
<p><a href="https://www.mercomindia.com/epsilon-acquire-cathode-material-research-center-germany/" target="_blank" rel="noopener"><strong>India-based Epsilon Group entered into an agreement to acquire John Matthey’s Technology Center focused on lithium-ion phosphate (LFP) cathode active materials in Moosburg, Germany.</strong></a> The financial terms of the acquisition were not disclosed. The facility features top-tier technical capabilities and a skilled workforce specializing in LFP chemistry. It also offers extensive product and process development capabilities and a versatile customer qualification plant tailored for testing new materials intended for large-scale production.</p>
<p><a href="https://www.mercomindia.com/cerc-allows-power-generators-two-capacity-revisions/" target="_blank" rel="noopener"><strong>The Central Electricity Regulatory Commission (CERC) addressed certain issues related to the implementation of the CERC (Indian Electricity Grid Code) Regulations, 2023.</strong></a> The Grid Code was published on July 11, 2023, and its provisions were to become effective from October 1, 2023. Several entities, including NHPC, SJVN, NTPC, THDC India, Grid-India, and Northeast Regional Power Committees, raised concerns about specific aspects of the Grid Code and sought clarification on these issues.</p>
<p><strong><a href="https://www.mercomindia.com/iredas-status-upgraded-the-way-for-navratna-status" target="_blank" rel="noopener">The Indian Renewable Energy Development Agency has been elevated from ‘Schedule B’ to ‘Schedule A’ Central Public Sector Enterprise, providing the agency greater financial autonomy</a></strong> and enabling strategic decisions to enhance its mission of expediting renewable energy adoption nationwide. The upgrade, as announced by the Department of Public Enterprises in the Ministry of Finance, has received formal endorsement from the Ministry of New and Renewable Energy. It empowers the agency with increased financial autonomy to advance renewable energy adoption in India and facilitate green projects in various states.</p>
<p><a href="https://www.mercomindia.com/eu-renewable-financing-mechanism-tender/" target="_blank" rel="noopener"><strong>The European Union’s inaugural renewable energy financing mechanism tender attracted bids well above its target capacity.</strong></a> The tender was realized through Luxembourg and Finland’s collaborative efforts within the renewable energy financing framework. Luxembourg has committed €40 million (~$44 million) as a voluntary contribution, while Finland provided the platform for projects ranging from 5 MW to 100 MW to compete for financial support. The tender, floated in April 2023, was the first-ever cross-border tender between EU member states.</p>
<p><a href="https://www.mercomindia.com/mercom-renewables-edition-in-july-2024/" target="_blank" rel="noopener"><strong>Mercom India announced the fourth edition of its flagship event, the Mercom India Renewables Summit, slated to take place on July 25 and 26, 2024.</strong></a> The Summit, a must-attend event in India’s annual renewable energy calendar, brings together industry leaders, policymakers, investors, and innovators in a collaborative effort to chart the course towards a sustainable energy future.</p>
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Daily News Wrap-Up: NTPC’s Tender for 1.5 GW of Wind-Solar Hybrid Projects


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					</table><p>Rewa Ultra Mega Solar (<a href="http://rumsl.mp.gov.in/" target="_blank" rel="noopener">RUMSL</a>) has invited bids to develop 750 MW wind-solar hybrid power projects in Madhya Pradesh on a build-own-operate basis. The developers can also propose to add storage capacity along with the projects.</p>
<p>The last date to submit the bids is November 17, 2023. Bids will be opened on the same day.</p>
<p>Bidders can submit their offers for a minimum of 10 MW and a maximum of 375 MW capacity.</p>
<p>Bidders must submit a bid document fee of ₹25,000 (~$301) plus GST and a bid processing fee of ₹100,000 (~$1,204) plus 18% GST for a project capacity of 10 MW to 50 MW and ₹200,000 (~$2,408) plus GST for projects with above 50 MW capacity.</p>
<p>They must also submit a bid security of ₹1.1 million (~$13,243) per MW of the quoted capacity.</p>
<p>The selected bidders must submit a performance bank guarantee of ₹2.75 million (~$33,107) per MW of the allotted capacity seven days before signing the power purchase agreement (PPA).</p>
<p>They must pay success charges of ₹50,000 (~$602) per MW of the allotted capacity plus 18% GST to RUMSL towards the administrative and legal overheads for the bid process. They must also pay a payment security fund at ₹500,000 (~$6,019) per MW of the allotted capacity to Madhya Pradesh Power Management Company (<a href="https://www.mppmcl.com/" target="_blank" rel="noopener">MPPMCL</a>) three months before the scheduled commencement of the supply.</p>
<p>The solar and wind components of the hybrid power project can be located at the same or different locations. The rated power capacity of any one of the components must be at least 33% of the total contracted capacity.</p>
<p>The hybrid power projects must be designed for interconnection with the Madhya Pradesh Power Transmission Company (<a href="https://www.mptransco.in/" target="_blank" rel="noopener">MPPTCL</a>) network. The developers will be responsible for setting up the connectivity to the nearest substation and long-term open access for the power purchase agreement period.</p>
<p>The PPA duration will be 25 years from the scheduled commencement of the supply.</p>
<p>Bidders must have a net worth of a minimum ₹11.1 million (~$133,636) per MW of the quoted capacity as of March 31, 2023.</p>
<p>They must have a minimum annual turnover of ₹5.5 million (~$66,216) per MW of the quoted capacity during the financial year 2022-23 or seven days before the bid submission deadline.</p>
<p>Alternatively, they can present documents showing an internal resource generation capability in the form of Profit Before Depreciation, Interest, and Taxes for a minimum ₹1.1 million (~$13,243) per MW of the quoted capacity as of FY 2022-23.</p>
<p>Bidders can also have an in-principle sanction letter from the lending institution or banks, committing a line of credit for a minimum of ₹1.65 million (~$19,864) per MW of the quoted capacity towards meeting the working capital requirement.</p>
<p>Foreign companies are also allowed to participate in the tender on a standalone basis or as a consortium member. If they participate on a standalone basis, they must form a special purpose vehicle (SPV), i.e., an Indian company registered under the Companies Act 2012 as its subsidiary company with at least 51% shareholding in the SPV before signing the PPA.</p>
<p>The hybrid project’s Capacity Utilization Factor (CUF) must not be less than 30% in any of the contract years. The project developer must maintain the generations so as to achieve an annual CUF of not less than 90% and not more than 120% of the declared CUF value during the PPA period.</p>
<p>In November last year, RUMSL <a href="https://www.mercomindia.com/rumsl-consultancy-tender-morena-wind-solar-hybrid-project" target="_blank" rel="noopener">invited</a> bids from consultants to prepare a detailed project report to develop the Morena wind-solar hybrid project with energy storage in Madhya Pradesh.</p>
<p>In September 2022, RUMSL <a href="https://www.mercomindia.com/sprng-energy-tata-renew-o2-power-winners-rumsls-750-mw-hybrid" target="_blank" rel="noopener">announced</a> the winners of the auction for developing 750 MW of grid-connected wind-solar hybrid power projects.</p>
<p>Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of real-time tender activity.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/satish-shetty/" class="vcard author" rel="author"><span class="fn">Satish Shetty</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Satish-pic-1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Satish Shetty,</strong> Associate Editor at Mercom India<br />
<a href="https://mercomindia.com/author/satish-shetty/" target="_blank" rel="noopener">More articles from Satish Shetty.</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Satish-pic-1.jpg" width="102" height="102" /><a href="https://mercomindia.com/author/satish-shetty/" target="_blank" rel="noopener"><strong style="color: #00b451">Satish Shetty</strong></a> is an Associate Editor with Mercom India. Prior to Mercom, Satish was a multimedia news producer at Reuters, where he gained experience in digital news media. Satish has his Bachelor of Arts (B.A.) degree in Broadcast Journalism from Limkokwing University of Creative Technology, Malaysia.<br />
<a href="https://mercomindia.com/author/satish-shetty/" rel="noopener noreferrer">More articles from Satish Shetty.</a></div>
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RUMSL Floats Tender to Develop 750 MW Wind-Solar Hybrid Projects

<p>The Gujarat government has announced a new solar plus wind hybrid power policy in a bid to promote the simultaneous production of wind and solar power in the state.</p>
<p>Under this policy, various benefits can be achieved by developers for a period of 25 years or through the life of the project, whichever is shorter. The hybrid policy will remain in force for five years.</p>
<p>One of the major highlights of this policy is land optimization. A developer can set up a solar power project on land meant for wind power project and vice versa. Similarly, transmission lines meant for solar can also be used for wind farms.</p>
<p>The Gujarat Energy Developer Agency (<a href="https://geda.gujarat.gov.in/" target="_blank" rel="noopener">GEDA</a>) will be the nodal agency to facilitate and assist developers in the implementation of the policy.</p>
<p>“This is a first of its a kind policy in India. If someone wants to set up a wind and solar hybrid power projects at a new place, the developer can do it. The decision will entirely be of the developer. They can use different metering as the rate for solar power is different from that of wind power”, said Saurabhbhai Patel, Gujarat’s minister for energy.</p>
<p>Other benefits under this policy include exemption of power duty for the electricity produced from wind and solar hybrid power projects. It also has a provision of 50 percent exemption from electricity duty, in the case where the developer sells power to a third party.</p>
<p>These hybrid projects will also benefit from an exemption of cross subsidy and additional surcharge, as well as distribution losses, and 50 percent relief in wheeling charges.</p>
<p>There are two categories for developers to undertake projects under this policy. First, Type-A projects – under which a developer can convert its existing or under construction solar or wind project into a hybrid project. Second, Type-B projects &#8211; which include new wind-solar hybrid projects not yet registered with GEDA.</p>
<p>Type-B developers will have to set up a dedicated line for power evacuation up to the receiving end-station of Gujarat Energy Transmission Corporation (GETCO) at its own cost.</p>
<p>New developers of hybrid plants can decide the capacity of their projects per the renewable power purchase agreement (PPA) with the consumer.</p>
<p>According to Mercom’s <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener">India Solar Project Tracker</a>, Gujarat has ~1.4 GW large-scale solar projects in operation and over 500 MW under development.</p>
<p>Image credit: Flickr</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/nitin/" class="vcard author" rel="author"><span class="fn">Nitin Kabeer</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><img class="alignleft wp-image-9822" src="https://mercomindia.com/wp-content/uploads/2018/04/nitin-2.png" alt="" width="99" height="105" /><span style="font-family: Calibri"><span style="color: #000000"><span>Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism &amp; Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. <a href="https://mercomindia.com/author/nitin/">More articles from Nitin Kabeer</a></span></span></span></p>
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Gujarat Announces Solar-Wind Hybrid Power Policy

<p>Water scarcity is an issue of increasing concern for India’s thermal power plants, according to a new report by World Resources Institute (<a href="http://www.wri.org/" target="_blank" rel="noopener">WRI</a>). Researchers found that about 40 percent of the thermal plants in India that rely on freshwater for cooling purposes are in water-stressed areas and more are expected to move into that category in coming years.</p>
<p>“Fourteen of India’s 20 largest thermal utilities experienced at least one shutdown due to water shortages between 2013-2016, costing the companies $1.4 billion,” according to the report entitled ‘Parched Power: Water Demands, Risks, and Opportunities for India’s Power Sector.’</p>
<p>The problem is only likely to worsen with time unless the country takes some solid measures to address it.</p>
<p>Currently, 83 percent of India’s total electricity comes from thermal power plants that rely on fuels like coal, natural gas, and nuclear energy, and almost 90 percent of these plants use freshwater for cooling purposes, according to the report.</p>
<p><strong>40% of India’s Thermal Power Plants Are in Highly Water-Stressed Areas</strong></p>
<div id="attachment_8808" style="width: 680px" class="wp-caption aligncenter"><a href="https://mercomindia.com/wp-content/uploads/2018/01/wri-map.png"><img aria-describedby="caption-attachment-8808" decoding="async" loading="lazy" class="wp-image-8808 size-full" src="https://mercomindia.com/wp-content/uploads/2018/01/wri-map.png" alt="40% of India’s Thermal Power Plants Are in Highly Water-Stressed Areas" width="670" height="784" srcset="https://cms.mercomindia.com/wp-content/uploads/2018/01/wri-map.png 670w, https://cms.mercomindia.com/wp-content/uploads/2018/01/wri-map-600x702.png 600w, https://cms.mercomindia.com/wp-content/uploads/2018/01/wri-map-256x300.png 256w, https://cms.mercomindia.com/wp-content/uploads/2018/01/wri-map-650x761.png 650w, https://cms.mercomindia.com/wp-content/uploads/2018/01/wri-map-624x730.png 624w" sizes="(max-width: 670px) 100vw, 670px" /></a><p id="caption-attachment-8808" class="wp-caption-text">(Source: WRI)</p></div>
<p>“Seventy percent of India’s thermal power plants will face high water stress by 2030 thanks to climate change and increased demands from other sectors. By 2030, 19 out of the 20 companies are likely to see an average increase in water use competition between 3 percent and 28 percent across their portfolio of power plants,” the report warned.</p>
<p>Plants in high water-stressed areas already have an approximately 21 percent lower utilization rate than their counterparts in low or medium water-stressed regions, according to WRI.</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2018/01/Solar-Heat-Map-002.png"><img decoding="async" loading="lazy" class="aligncenter wp-image-8809 size-full" src="https://mercomindia.com/wp-content/uploads/2018/01/Solar-Heat-Map-002.png" alt="40% of India’s Thermal Power Plants Are in Highly Water-Stressed Areas" width="5230" height="3325" srcset="https://cms.mercomindia.com/wp-content/uploads/2018/01/Solar-Heat-Map-002.png 5230w, https://cms.mercomindia.com/wp-content/uploads/2018/01/Solar-Heat-Map-002-600x381.png 600w, https://cms.mercomindia.com/wp-content/uploads/2018/01/Solar-Heat-Map-002-300x191.png 300w, https://cms.mercomindia.com/wp-content/uploads/2018/01/Solar-Heat-Map-002-768x488.png 768w, https://cms.mercomindia.com/wp-content/uploads/2018/01/Solar-Heat-Map-002-1024x651.png 1024w, https://cms.mercomindia.com/wp-content/uploads/2018/01/Solar-Heat-Map-002-650x413.png 650w, https://cms.mercomindia.com/wp-content/uploads/2018/01/Solar-Heat-Map-002-624x397.png 624w" sizes="(max-width: 5230px) 100vw, 5230px" /></a></p>
<p>This, in turn, has financial implications. In 2016 alone, water shortages cost India about 14 terawatt-hours of potential thermal power generation, canceling out more than 20 percent of the growth in the country’s total electricity generation from 2015.</p>
<p>The report also offered potential ways to reduce the risks of water scarcity. It suggested cooling system upgrades, plant efficiency upgrades, and ultimately shifting toward water-free renewables like solar photovoltaics and wind to curb the risks that water scarcity poses to power generation.</p>
<p>According to the WRI’s findings, over 12.4 billion cubic meters of fresh water withdrawals could be reduced from India’s power sector needs if proposed cooling mandates were fully implemented and aggressive renewable targets completely achieved.</p>
<p><strong>Shifting Toward Renewables:</strong></p>
<p>The report suggests that the government should keep working toward meeting its ambitious renewable goals and prioritize solar PV and wind projects when possible to scale up power production while reducing the power sector’s exposure to water related risks.</p>
<p>“Generating power with solar PV and wind can achieve not only zero carbon emissions but also near-zero water consumption. At the national level, moving toward a power mix that has a higher share of PV and wind can reduce the power sector’s water intensity and exposure to risks. At the local level, these renewables could help improve the resilience of the local power system to extreme drought events and, at the same time, save freshwater for domestic and agricultural users,” said the report.</p>
<p>Installations in 2017 are trending in the right direction. According  to data compiled by <a href="https://mercomindia.com/research/" target="_blank" rel="noopener">Mercom India Research</a>, the installation share of coal in India’s power mix declined significantly from 62 percent in 2016 to just <a href="https://mercomindia.com/solar-top-renewable-source-india-2017/" target="_blank" rel="noopener">19 percent</a> in 2017. Solar was the leading source of new power capacity additions in calendar year 2017 with installed capacity of approximately 9.5 GW accounting for 45 percent of total power capacity additions. Wind was the second most installed power source with 19.6 percent followed by coal at 18.9 percent.</p>
<p><a href="http://www.wri.org/sites/default/files/parched-power-india.pdf" target="_blank" rel="noopener">Click here</a> to download the full report</p>
<p>Image credit: NTPC</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/ankita/" class="vcard author" rel="author"><span class="fn">Ankita Rajeshwari</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><img class="alignleft" src="https://mercomindia.com/wp-content/uploads/2018/03/ankita-edited-1.png" alt="Ankita Rajeshwari" /> Ankita is an editor at MercomIndia.com where she writes and edits clean energy news stories and features. With years of experience in the news business, Ankita has a nose for news and an eye for detail. Prior to Mercom, Ankita was associated with The Times of India as a copy editor for the organization’s digital news desk. She holds a Bachelor’s degree in Psychology from Delhi University and a Postgraduate Diploma in journalism. <a href="https://mercomindia.com/author/ankita/">More articles from Ankita Rajeshwari.</a></p>
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