Solar panels on a green meadow. © GIZ/James Ochweri

Future-proofing the electricity market: expanding renewable energies in India

Market development for storage integration and load shifting

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  • Client

    German Federal Ministry for Economic Cooperation and Development (BMZ)

  • Country
  • Political sponsors

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  • Runtime

    2025 to 2028

  • Involved

    Central Electricity Regulatory Commission (CERC), Central Electricity Authority (CEA), Grid India

  • Products and expertise

    Sustainable infrastructure: water, energy, transport

Context

Renewable energies (RE) – such as solar and wind power – are experiencing strong growth in India. As at mid-2023, they accounted for 13 per cent of national electricity generation.

However, rapid RE expansion in an electricity system founded primarily on coal and oil involves huge operational, regulatory and structural challenges. Electricity supply from RE is subject to fluctuations depending on the season, time of day and weather. To secure a reliable power supply, state actors and energy providers must take measures to compensate for these fluctuations.

Objective

The Indian electricity market is being adapted to future needs so that the share of RE can increase.

Approach

The Indian electricity market is being adapted to future needs so that the share of RE can increase.

The project advises national and federal state authorities in India on adapting, creating and implementing framework conditions for a future-oriented electricity market as part of the energy transition. It also trains experts and managers at the authorities to enable them to prepare, adapt and implement regulations and incentives for reforming the electricity market. The project supports women in particular by developing gender-responsive training courses and networking and mentoring programmes.

The project is developing and implementing a demonstration project that designs innovative, gender-equitable services for electricity providers and shows them how to adapt the electricity grid to take account of fluctuations.

The project also conducts specialist events to promote dialogue between representatives of interest groups at national and federal state level.

Last update: January 2025