India will add 15GW of complementary wind and solar capacity over the next five years

Indian credit rating firm Crisil said it expects to add nearly 15,000 megawatts of wind-solar complementary capacity
over the next five years as the government continues to commit to increasing the share of renewables in the country.
Of that 15,000 MW, nearly 10,000 MW are already under construction or tendered and are expected to start powering
the grid in fiscal 2024.

"We hope that the hybrid market will continue to evolve
as the number of projects and developers seeking to unlock value from hybridization increases.
With strong support from Solar Energy Corporation of India and several state governments, we expect hybrid power generation to reach 15,000 MW in the next five years," said
Rahul Prithiani, Director of Crisil.

According to the rating agency, because solar power generation tends to peak during the day and wind energy peaks at night, the intermittent nature of power supply affects the resilience of the grid, making people reluctant to buy electricity
from independent wind and solar projects.

"However, in a hybrid scenario, the two energy sources can complement each other, which can help overcome the variability of power generation and grid security, thereby eliminating people's reluctance
," Prithiani said.
”

As of March 2020, India has 37,690 MW of standalone wind and 35,000 MW of solar power
.

The agency further stated that there are currently proposals for 3,900 MW of pure hybrid projects, as well as another 4,500 MW of hybrid projects
with energy storage systems.

"Projects with storage capabilities can meet peak load demands
in addition to improving capacity utilization.
As a result, these projects have the potential to reduce the country's reliance on
natural gas and pumped hydro peaking units.
”

However, the agency noted that a good site with good irradiance and high wind speeds will be a key challenge
.
At the same time, pricing will be a key factor in the success of
complementary wind-solar projects.
"We expect hybrid electricity prices to be in the range of Rs 2.
8-2.
9 per Rs 2.
9 per heavy-duty hybrid configuration," said Pinal Mehta, Deputy Director of Crisil
.

For hybrid projects with storage capacity, Crisil believes that the weighted average electricity price (peak and non-peak) found in the recent auction is Rs 4.
04-4.
30 per bit, which is competitive
compared to thermal electricity prices (Rs 4.
4 per 4.
4 rupees).

"Land availability and policies such as co-siting will remain key
to the viability of mixed projects," the agency added.
Other challenges, including appropriate transmission infrastructure and technical issues such as grid balancing, must also be addressed
.
”