A new study from the University of California’s India Energy and Climate Center (IECC) provides an optimistic outlook for India’s energy sector. The research suggests that India’s growing electricity demand, which hit 250 GW in May 2024, can be effectively managed with the adoption of solar energy and storage technologies.
With electricity consumption increasing by 46 GW over the last two years and expected to rise by an additional 50-80 GW by 2027, India is facing potential power shortages. These shortages are anticipated during summer evenings and nights when solar power production decreases, potentially leading to deficits of 20-40 GW by 2026.
The IECC study argues that India can avoid such shortages by rapidly expanding its solar and storage capacities. Specifically, it recommends adding 50 GW of solar power and 15-30 GW of storage to offset potential shortfalls. The cost of solar and storage has recently dropped to historic lows, with prices for solar plus evening storage at Rs 3.41/kWh, potentially decreasing further to Rs 3/kWh in the near future.
Dr. Nikit Abhyankar, Senior Scientist at IECC, highlights that solar and storage installations can be completed within 1-2 years, offering a quicker solution compared to the 5-8 years needed for new thermal or hydroelectric plants. The study suggests that policy measures such as storage mandates, large-scale auctions, and utility incentives are crucial for accelerating deployment.
Dr. Amol Phadke, another Senior Scientist at IECC, acknowledges potential challenges in domestic battery manufacturing but notes that global overcapacity should meet India’s requirements. The study also forecasts that India’s electricity demand will quadruple by 2047, a need that can be met cost-effectively through renewable energy and storage, positioning India for a transition to a clean energy future.
It is very good and amazing to hear but capitalist and politics are unseperable
India needs to develop sustainable means of generating electricity such a solar power. The govt should set up lots of Solar power projects and give incentives to people who purchases solar power generating equipment.
Adopting green energy is a must for every country.