Balancing power key to India's energy transition, could save €65 trillion by 2050

The modelling shows that a power system including balancing power has significant advantages when it comes to both cost and CO2 reductions. The model reveals that this pathway would generate cumulative savings of EUR 65 trillion by 2050 compared to a renewables-only pathway, due to less renewable capacity needed.

Wärtsilä's global power system modelling, published in the Crossroads to net zero report, compares two pathways from the year 2025 to 2050 with the aim to reduce greenhouse gas emissions and limit global warming, as per the Paris Agreement targets.

In the first pathway, only renewables, such as wind and solar power, and energy storage are added to the power mix. In the second pathway, balancing power generation technologies, that can be ramped up quickly when needed to support intermittent renewables, are also added to the system.

India is on a transformative journey to integrate 500 GW of non-fossil fuel energy capacity by 2030. The Government of India has committed to inviting bids for 50 GW of renewable energy capacity annually from FY 2023-24 to 2027-28, a goal that requires meticulous planning, effective execution, and strong policy support.

As India's power system becomes more complex with an increasing share of weather-dependent renewable energy sources, enhancing system flexibility is crucial. A recent Wärtsilä-KPMG ancillary services market study underscores the need for greater operational flexibility, particularly in renewable-rich states like Gujarat, Tamil Nadu, and Rajasthan.