Resource Library / Journal Article / Optimizing renewable energy integration pathways: Inter-regional coordination and storage in India’s power sector
Optimizing renewable energy integration pathways: Inter-regional coordination and storage in India’s power sector
Journal Article
1 September 2025
Abstract
India’s rapid economic growth and ambitious renewable energy (RE) targets require modeling frameworks capable of capturing the complexities of high RE integration. This study develops a capacity-expansion and dispatch model with a 15-min resolution for India’s Western (WR) and Southern (SR) Regions, which together represent over half of the nation’s electricity demand, covering 592 million people and 59 % of India’s Gross Domestic Product. We examine multiple scenarios for RE integration, including the operationalization of India’s policy for Renewable Purchase Obligations (RPO). The analysis considers capacity constraints on coal and hydro power, the role of battery storage, and two RPO compliance frameworks: one demanding each region individually meet its RE requirement (layered) and another allowing the WR + SR system to fulfill the target collectively (centralized). Results show that regional and inter-regional coordination reduces system costs and boosts RE penetration compared to purely state-based dispatch. Limiting coal or hydro expansions to pipeline projects increases reliance on battery storage, raising costs under current assumptions. When solar is paired with large-scale storage, RE shares often exceed mandated levels but with higher investment. Under layered compliance, each region expands RE more evenly but may incur larger costs. Centralized compliance concentrates capacity in areas with lower costs yet can introduce equity concerns in some regions. Overall, the findings underscore the importance of coordinated resource planning, robust transmission infrastructure, and adaptable policy mechanisms to meet India’s climate objectives. By tailoring RPO strategies to regional resource endowments, India can move toward a cleaner and more reliable power system.
Summary
This study builds a detailed model of India’s Western and Southern electricity grids — regions that together serve over half the country’s population and economy — to see how best to meet renewable energy targets. It tests different approaches: should each region hit its renewable energy goals on its own, or should the two regions work together and share the load? The results show that coordinating across regions, rather than each state going it alone, lowers costs and gets more renewable energy onto the grid. Restricting new coal or hydro power pushes the system to rely more on battery storage, which is more expensive under current cost assumptions. Pairing solar power with large amounts of storage can push renewable energy shares beyond the required targets, but at a higher price. If each region must meet its target independently, growth is more evenly spread but costlier overall; if the two regions can pool their efforts, costs go down but some areas may end up contributing less than others, raising fairness concerns. The overall message: coordinated planning, stronger transmission links between regions, and flexible policies tailored to each region’s natural resources will help India build a cleaner, more reliable power system.
Presented At/Published In
Applied Energy
Country
India
Associated Resources
Citation
Venkataramana NT, Kanitkar T, Ramadesigan V, Banerjee R. Optimizing renewable energy integration pathways: inter-regional coordination and storage in India’s power sector. Appl Energy. 2025;394(C).