RE procurement models

As the share of RE increases, it will have greater impact on the grid. Key challenges include: (a) higher grid integration costs due to the variable and unpredictable nature of solar-wind resources; (b) the need for greater system flexibility and improved voltage control; (c) difficulty forecasting and planning for RE procurement; (d) limited demand-side management by discoms; (e) a focus on the levelized costs of energy from RE rather than the overall cost of supply to consumers; and (f) increased power generation costs for thermal projects. In this analysis, GV Sanjay Reddy, Chairman Reddy Ventures and Vice Chairman GVK, looks…