The Subgroup IV Green Energy Finance and Grid Integration

The Subgroup IV on "Green Energy Finance and Grid Integration" focuses on large scale grid integration of renewable energy sources.

Chairs and Stakeholders:

Chairperson India:
Ms. Aparna Bhatia, Adviser, Bilateral Cooperation, Department of Economic Affairs, Ministry of Finance, Government of India
Chairperson Germany:
Ms. Barbara Schäfer, Head of Division of South Asia, The German Federal Ministry for Economic Cooperation and Development (BMZ)
Stakeholders:
Transmission utilities, private sector companies, think-tanks and research institutions
Government organisations:
Power System Operation Corporation Limited (POSOCO), Central Electricity Authority (CEA), Central Electricity Regulatory Commission (CERC), Ministry of Power (MoP)

Activities

The following three priority issues were identified through the strategic review process:

To assess the evolving renewable energy (RE) evacuation and integration into the grid requirements covering both technical and financial aspects in view of enhanced RE capacity targets of 175 GW by 2022.
Grid stabilization mechanisms such as large storage solutions like pump storage (bigger than 25 MW size)
Exploring the future requirements for smooth and compatible data communication infrastructure for grid management purposes.

The road map for the mentioned three priority points is as follows:

1. To assess the evolving renewable energy (RE) evacuation and integration into the grid requirements covering both technical and financial aspects in view of enhanced RE capacity targets of 175 GW by 2022.

Short Information: Monitoring the upcoming RE status and its technical/regulatory requirements through the stakeholders. The Government has set an ambitious target of 175 GW of Renewable Energy capacities by 2022. Achieving this target require capital outlay of US $ 160 billion including equity of US $ 40 billion. In addition, huge investment is required for transmission; up-gradation of infrastructure in order to utilize power generated though Renewable Energy sources. The 175 GW is divided into 100 GW of solar, 60 GW of wind, 10 GW Bio power and 5 GW of small hydro. Major renewable energy projects will be coming up in renewable potential rich states, for which German Federal Government earmarked financial support of at least one billion Euro to ensure evacuation and integration of renewable power in Indian power transmission grid.

Proposed planned activities ahead:
1. Study and analyze the infrastructure and technical requirements of distribution network to integrate the RE generation in the grid.
2. Conducting study to map the evacuation infrastructure facilities for installed and upcoming renewable energy in rich RE states.
3. Study tour with various stakeholders on understanding the integration aspect of RE generation into the grid.
Implementation Partners: KfW/GIZ/PGCIL/State Utilities
2. Grid stabilization mechanisms such as large storage solutions like pump storage (bigger than 25 MW size)

Short Information: With high penetration level of RE capacity the intermittency and variability of renewable energy sources may at times lead to a sudden drop in generation. Therefore, fast-ramping conventional energy sources, energy storage, demand side/demand response management must be carried out to stabilize the grid. Pumped storage technology is a technically proven, cost effective, highly efficient and operationally flexible way of energy storage on a large scale.

Proposed planned activities ahead:
1. A workshop on understanding of Pumped Storage Systems from a technical and market perspective and the possible support required from policy makers, regulators etc., in order to make the projects viable and consequently attract investments.
2. The deliberations during the workshop may necessitate a study which could possibly include recommendations for bridging the identified gaps and assessment of future business potential and consequent investments.
3. A study tour with relevant stakeholder on sites, manufacturing bases, etc.
Implementation Partners:
KfW/GIZ/CERC/CBIP/POSOCO/CEA/MOEF/NHPC/MoP/DEA
3. Exploring the future requirements for smooth and compatible data communication infrastructure for grid management purposes.

Short Information: The development of a more efficient, economic and sustainable transmission network requiring replacement of control and protection devices with installation and larger roll-out of systems like Optical Ground Wire (OPGW) and communication infrastructure like Supervisory Control and Data Acquisition (SCADA) and Wide Area Management System (WAMS). These systems will contribute towards improvement in network monitoring and loss reduction.

Proposed planned activities ahead:
1. Conducting studies within GEC states to identify the technical, economical and reliable systems for smooth and compatible date communication infrastructure for grid management purposes in the future.
2. Study tour to check the technical standards for effective and compatible data communication infrastructure for grid management.
Implementation Partners: KfW/GIZ/PGCIL/STU

Other Subgroups

Subgroup I on Flexibilisation of Existing Thermal Power Plants

Flexibilisation of existing thermal power plants to adapt to increasing shares of power from fluctuating renewable energy sources is one of the…

Subgroup II on Renewable Energies

The Subgroup II on "Renewable Energies" discusses with private sector stakeholders from India and Germany innovative business models and upcoming…

Subgroup III on Energy Efficiency

The Subgroup III on 'Energy Efficiency' focuses on energy efficiency measures to achieve the energy goals of Germany and India.