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Managing power system flexibility in India via coal plants

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  • Shrimali, Gireesh

Abstract

The Government of India plans to install 175 GW of renewable energy projects by 2022, and 275 GW by 2027. In meeting these goals, the Indian power sector faces twin challenges: first, managing renewable energy will require increased flexibility in the system; second, there will be under-utilization of existing coal-based plants, which would stress the economics of not only individual plants but also the overall power sector. This creates a need to explore the conversion of existing baseload coal plants as flexible resources. Our analysis shows the following: first, the incremental costs for converting baseload coal plants to flexible ones would be only 5%–10% of the total costs of baseload plants in net present value terms or 8%–22% in levelized terms; second, flexible coal may be the most cost-effective flexible solution in the near-term, by a factor of approximately 4–22, when compared to lithium ion batteries or pumped hydro. Finally, while we have provided an indicative analysis of additional costs of converting baseload coal plants into flexible ones, we recommend that flexible coal be procured cost-effectively using appropriate market mechanisms, such as capacity auctions.

Suggested Citation

  • Shrimali, Gireesh, 2021. "Managing power system flexibility in India via coal plants," Energy Policy, Elsevier, vol. 150(C).
    • Handle: RePEc:eee:enepol:v:150:y:2021:i:c:s0301421520307722
    DOI: 10.1016/j.enpol.2020.112061
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    References listed on IDEAS

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    1. Chikkatur, Ananth P. & Sagar, Ambuj D. & Abhyankar, Nikit & Sreekumar, N., 2007. "Tariff-based incentives for improving coal-power-plant efficiencies in India," Energy Policy, Elsevier, vol. 35(7), pages 3744-3758, July.
    2. Branker, K. & Pathak, M.J.M. & Pearce, J.M., 2011. "A review of solar photovoltaic levelized cost of electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4470-4482.
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    Citations

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    Cited by:

    1. Jindal, Abhinav & Shrimali, Gireesh, 2022. "At scale adoption of battery storage technology in Indian power industry: Enablers, frameworks and policies," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    2. Ekata Kaushik & Vivek Prakash & Om Prakash Mahela & Baseem Khan & Almoataz Y. Abdelaziz & Junhee Hong & Zong Woo Geem, 2022. "Optimal Placement of Renewable Energy Generators Using Grid-Oriented Genetic Algorithm for Loss Reduction and Flexibility Improvement," Energies, MDPI, vol. 15(5), pages 1-20, March.
    3. Shen, Bo & Hove, Anders & Hu, Junfeng & Dupuy, Max & Bregnbæk, Lars & Zhang, Yuejun & Zhang, Ning, 2024. "Coping with power crises under decarbonization: The case of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 193(C).
    4. Chen, Xin & Wenjia Zhou,, 2023. "Support carbon neutrality target — Which flexible power source is the best option for China?," Energy, Elsevier, vol. 285(C).
    5. Bhattacharya, Subhadip & Banerjee, Rangan & Ramadesigan, Venkatasailanathan & Liebman, Ariel & Dargaville, Roger, 2024. "Bending the emission curve ― The role of renewables and nuclear power in achieving a net-zero power system in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    6. Jose Barroco & Peerapat Vithayasrichareon, 2023. "Accelerating the Energy Transition through Power Purchase Agreement Design: A Philippines Off-Grid Case Study," Energies, MDPI, vol. 16(18), pages 1-26, September.

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