India’s renewable energy landscape has transitioned from standalone solar and wind installations to highly customized hybrid power projects that often include energy storage solutions.

Power distribution companies are now examining demand patterns and requesting renewable energy producers to specifically address peak demand and deliver reliable, dispatchable power around the clock, with additional customization based on regional or state-specific needs.

At a session, ‘Made-to-Order: The Future of Hybrid Power Projects,’ held as part of the Mercom India Renewables Summit 2024 in New Delhi, industry leaders explored the evolving landscape of hybrid power projects in India.

Ajay Kumar Sinha, Additional GM (Contracts and Procurement) at SECI; Purnendu Chaubey, Senior Vice-President at ReNew; Sunil Gupta, CEO of Azure; and Kartikeya Sharma, Co-Founder and Chief Strategy Officer at SunSure Energy, were the panelists. Priya Sanjay, Managing Director, Mercom India, moderated the session.

The discussion highlighted the evolution from simple solar and wind combinations to more complex integrations involving storage and other renewable sources. The panelists shared their insights on the challenges and opportunities that lie ahead.

Ajay Kumar Sinha opened the discussion by reflecting on the initial efforts to combine solar and wind energy. “Hybrid was an initial effort to make solar and wind together, to meet the increasing aspirations. Now we have variations other than solar and wind, and multiple mixes of energy sources are happening,” he noted.

This shift signifies the industry’s response to the growing demand for more reliable and diverse energy sources.

Purnendu Chaubey emphasized the critical role of storage in modern hybrid projects. “When we started, it was solar and wind, which has now changed to solar, wind and storage, and many other combinations. The primary aim is to utilize the transmission infrastructure properly.”

However, he also pointed out the challenges in wind energy deployment, particularly in regions like Karnataka and Maharashtra, where turbine temperature issues and restrictions by the Ministry of Defense pose significant hurdles.

Sunil Gupta highlighted the unique aspect of India’s 25-year contract periods, which differ from many other markets. “Customer priorities can change a lot in these 25 years,” he said, stressing the importance of flexibility and adaptability in meeting evolving demands.

He also pointed out the increasing desperation in power purchase markets, underscoring the need for a mix of fast response generators to stabilize the grid.

Kartikeya Sharma discussed the impact of the Covid-19 pandemic on power requirements in the C&I sector. “Old deals of C&I were pure solar or pure wind, simple in architecture. But for C&I consumers today, power requirements have changed, and the need for round-the-clock power has increased.”

In a typical C&I power purchase agreement, the availability of wind capacity has become a constraint for the industry. Consequently, the industry is observing a trend where storage is increasingly incorporated into hybrid projects.

Sinha elaborated on the future direction of hybrid projects, emphasizing the need for dispatchable energy solutions. “The new mixes should be as per demand and dispatchable,” he said.

He also mentioned ongoing efforts to streamline the PPA signing process and the development of new tenders involving various technologies, including electrolyzers, hydrogen, and ammonia.

Sunil Gupta and Purnendu Chaubey both stressed the indispensable role of storage in achieving firm power. They felt that creating firm power without storage was almost impossible.

Chaubey highlighted the government’s increasing recognition of the importance of storage. He also mentioned ongoing discussions to add wind capacity to existing solar plants in Rajasthan and the requirement for at least 20% storage in new solar projects.

Kartikeya Sharma concluded with a call for innovation in demand response. “India needs a lot of innovation on the demand response side,” he said, pointing to the necessity for new approaches and technologies to manage hybrid projects effectively.