According to reports, nearly, $8 billion investment would be required to strengthen and develop renewable power evacuation and transmission infrastructure for the planned renewable power capacity addition in next five years.
“We are looking at various options to raise financing for implementing this important report, including through public-private partnership,” said Minister for New and Renewable Energy Farooq Abdullah.
Abdullah said that a federal outlay of around $4 billion has been earmarked for undertaking renewable energy activities during the next five years.
Currently, most of the renewable electricity generated within a State has to be absorbed within that State and grid balancing issues limit addition of more renewable electricity beyond a certain limit. In Tamil Nadu, where wind penetration is around 50 per cent in terms of capacity is experiencing such constraint. The sudden addition or withdrawal of wind power from the grid is already causing difficulties in grid operation.
During periods of sudden wind power ingress, it becomes uneconomical for the State to accept wind electricity.
“The emergence of large amounts of renewable electricity around the country is creating new challenges for both the transmission and distribution sectors,” the Minister said.
According to him, wind power is the fastest growing renewable source and it constitutes around 70 per cent of the total renewable energy installed capacity in the country.
Our 12th Five-Year Plan proposals for the period 2012-2017 seek a capacity addition of 30 GW, he added.