Indo-German Energy Programme – Green Energy Corridors (IGEN-GEC)

Project description

Title: Indo-German Energy Programme – Green Energy Corridors (IGEN-GEC)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: India
Lead executing agency: Ministry of New and Renewable Energy, Ministry of Power
Overall term: 04/2013 to 03/2019

Context

India possesses a wealth of diverse renewable energy (RE) resources which could be sustainably harnessed for the generation of electricity and several other energy applications. India’s RE agenda, while addressing the issue of climate change, also provides solutions on energy security and the accessing of energy. In the last five years, the RE capacity has grown manifold, largely due to a favourable policy environment in India. As on March 2015, India’s installed RE capacity stands at 36 GW which is 13 per cent of the country’s overall electricity generation capacity. The Government of India has set a target of 175 GW of installed RE capacities by 2022. While the increased share of variable RE generation in the electricity generation mix is a welcomed step, the move also poses fresh challenges before India’s grid operators. In order to be able to evacuate electricity of these RE capacities, an expansion and modernisation of the existing distribution and transmission grid is required. This is owed largely to the geographical distance between the centres of production and consumption, as well as due to the intermittent availability of RE sources and their necessary measures for grid stabilisation. The gestation period for the installation of remotely located RE projects is quite lower than the gestation period for developing the grid infrastructure. Hence, the evacuation of RE generation is becoming a bottleneck. Moreover, intermittency of RE generation causes frequency and voltage disturbances in the grid. Additionally, in the absence of state-of-the- art technology and skills on RE integration, grid operators have to frequently back-down from the otherwise ‘must run’ RE generation. This leads to negative sentiments in the investor community.

Objective

The Indo-German Energy Programme – Green Energy Corridors (IGEN-GEC) project seeks to design and develop a concise set of recommendations for decision makers and implementation agencies in India to assist them in RE grid integration. This shall be achieved through the extension and modernisation of the transmission and network management infrastructure, in the light of increased shares of RE in the grid.

Approach

The basic approach is to identify RE grid integration challenges and possible solutions for implementation.
The IGEN-GEC project includes diverse strategies to achieve key impacts:

  • Devising methodology for assessment and enhancing the renewable balancing capability of each state/control area, forecasting of renewable energy generation.
  • Designing the Renewable Energy Management Centres (REMCs), identifying their functional mandate and infrastructural requirements.
  • Designing the markets, including ancillary and capacity markets with emphasis on increased share of RE in the overall power sector.
  • Analysis and recommendations on the regulatory measures and technical standards in India which enable larger penetration of variable RE generation into the mainstream power network.

GIZ is implementing Technical Cooperation in this field in a very close collaboration with KfW Development Bank in charge of Financial Cooperation. KfW is providing concessional loans of more than EUR 1 billion for strengthening the central and state transmission infrastructure for evacuating renewable energy.

Expected Results

Since GEC is the first major initiative in India to address the issues on RE grid integration, the project is generating awareness and recommending possible solutions.

  • Development of RE generation forecasting methodology and recommendations on required infrastructure in India.
  • Creation of REMC as a nodal institution for addressing operational issues on RE integration at the central level, as well as in selected Indian states.
  • Optimal utilisation of renewable energy sources.
  • Appropriate market design to accommodate high shares of variable electricity generation.
  • Improved grid management, congestion management and grid discipline.
  • Building the capacity of grid operators at the central level and in selected states on large scale RE grid integration.