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Key Points

India's renewable energy generation share climbed to 17% in May, per HSBC data, driven by lower power demand and excess rainfall. The government is doubling down on battery storage with Rs 54 billion in viability gap funding for 30GWh capacity. Thermal plants saw reduced load factors as renewables took priority, pushing coal stocks to 21 days of supply. Solar power prices even hit zero in late May due to high renewable output.

Key Points: India Renewable Energy Share Hits 17% in May as HSBC Reports Surge

  • Renewable share surged to 17% in May due to lower demand
  • Excess rainfall and must-run status boosted renewables
  • Govt announced Rs 54B VGF for 30GWh battery storage
  • Thermal plant load factor fell to 65% amid renewables push
2 min read

Renewable energy generation in India jumps to 17 pc in May: HSBC report

HSBC report shows India's renewable energy share rose to 17% in May due to lower power demand and policy push for battery storage.

"Power prices during solar hours dropped to zero on 25 May. – HSBC Report"

New Delhi, June 13

The decline in power demand, together with continued renewable capacity additions the last year, caused the share of renewable energy generation in India jump to 17 per cent in May and to 19 per cent in first 10 days of June — compared to 13 per cent/14 per cent in May/June last year, respectively, an HSBC report showed on Friday.

Large base and excess rainfall cause decline in power demand. Power demand/peak demand declined 4 per cent/7 per cent in May and declined 1 per cent/1 per cent in the first 10 days of June, respectively.

This was the result of significantly above average rain levels in May.

Owing to the must-run status of renewables, thermal plants had to back down reducing the plant load factor (PLF) to 65 per cent in May (versus 72 per cent last year).

“Accordingly, coal stocks at power plants reached a significant 61m tonnes (21 days of demand versus 17 days at the same time last year). This also resulted in power prices during solar hours dropping to zero on 25 May. Power deficits, accordingly, remained negligible through the month,” the report mentioned.

Government is backing storage. To solve the intermittency issue of renewable energy, batteries are critical to control curtailment, improve renewable energy offtake, and improve efficient use of existing coal plants.

The government announced a slew of measures, doubling down on battery storage: announcing a Rs 54 billion of additional viability gap funding (VGF) for 30 GWh of battery storage.

This amounts to $21 per kwh of government incentives for putting up new battery storage systems. Out of the 30GWh, 25GWh of storage capacity will be allocated to states and 5GWh to NTPC.

This is in addition to the Rs 37 billion of existing VGF under which the existing 13GWh of storage is under implementation.

“Further, the government also extended the waiver of Inter-State Transmission (ISTS) charges for pumped storage plants (PSP) (construction awarded before June 2028) and co-located battery storage (BESS) for projects (commissioned before June 2028). This will help accelerate the take-up of battery tenders - nearly 10GWh of BESS tender capacity has been awarded since March 2024,” according to the HSBC note.

- IANS

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Reader Comments

Here are 6 diverse Indian perspective comments for the renewable energy article:
R
Rahul K.
Great progress! But we need to ensure this isn't just a temporary boost from reduced demand. The battery storage push is smart - solar power going to waste during peak generation is a real issue. Hope states implement these projects efficiently 🤞
P
Priya M.
Finally some good news! 17% renewable energy is a big jump from last year. The battery storage funding shows government is serious about green energy. But what about recycling these batteries later? We shouldn't create another e-waste problem while solving one.
A
Amit S.
While renewables are increasing, we can't ignore that 65% PLF for thermal plants means job losses in coal sector. Government should have parallel plans for reskilling workers. Energy transition must be just transition for all Indians.
S
Sunita R.
Zero power prices during solar hours! 😲 This shows how much potential we have. If we can store and distribute this properly, imagine the savings for households and industries. More focus needed on decentralised solar for villages.
V
Vikram J.
Good steps but implementation is key. Remember the solar mission targets we missed earlier? Hope this time the funds reach actual projects and don't get stuck in bureaucracy. Also, why no mention of wind energy in this report?
N
Neha P.
As someone from a coastal state, I'm happy but concerned about land use. Solar farms need huge areas - are we properly assessing environmental impact? Maybe more focus on rooftop solar would be better. Still, progress is progress! 👍

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