82 Energy driving
Top Stories and Market Trends Update - January 2025
1. A Reliable Storage Option That Needs Attention: Off-River Pumped Hydro Power
Off-river pumped hydro power (ORPH) is emerging as a reliable energy storage solution that deserves more attention in the global shift toward sustainable energy sources. Unlike traditional hydroelectric plants, off-river pumped hydro does not rely on large natural water bodies but instead uses artificial reservoirs that are separate from natural rivers. This form of energy storage involves two water reservoirs at different elevations. During periods of excess power generation, typically from renewable sources like solar and wind, water is pumped from the lower reservoir to the upper one. When energy demand peaks or renewable generation drops, the water is released back into the lower reservoir, passing through turbines to generate electricity.
ORPH systems offer several advantages over other energy storage technologies. Firstly, they can provide large-scale, long-duration energy storage, making them highly useful for balancing the grid. Unlike batteries, which are generally more suited for short-duration storage, ORPH systems can store energy for hours or even days, helping to smooth out the intermittent nature of renewable energy generation. Additionally, ORPH plants can operate efficiently over long lifespans, often exceeding 40 years, making them a cost-effective solution for grid stability.
In India, where the government is making significant strides toward achieving 50% of its power from non-fossil fuel sources by 2030, ORPH could play a crucial role. India’s vast geography and abundant renewable energy resources make it well-suited for off-river pumped hydro power. Several states are already exploring the potential of ORPH to balance the grid and support a decarbonized power sector. However, the lack of sufficient attention and investment in this technology, as well as regulatory hurdles, remains a challenge. With India’s power sector increasingly focusing on storage solutions to manage renewable energy generation, off-river pumped hydro could prove to be an indispensable part of the country’s energy infrastructure in the coming years.
2. Andhra Electricity Regulator Okays Power Purchase from SECI in FY26
In a significant move for India’s renewable energy ambitions, the Andhra Pradesh Electricity Regulatory Commission (APERC) has approved the purchase of renewable energy from the Solar Energy Corporation of India (SECI) for the fiscal year 2026. This decision paves the way for Andhra Pradesh to procure a substantial portion of its electricity needs from renewable sources, particularly solar and wind, as the state works to meet its power demand while reducing its reliance on fossil fuels.
SECI, a government-backed entity, plays a crucial role in facilitating the growth of India’s renewable energy sector by implementing solar and wind energy projects across the country. The approval from the Andhra Pradesh regulator to purchase power from SECI marks a commitment to clean energy that aligns with the central government’s renewable energy targets. The deal is expected to bring significant economic benefits to the state, including lower electricity costs over the long term, reduced carbon emissions, and enhanced energy security.
Andhra Pradesh, which has already made considerable progress in expanding its renewable energy capacity, stands to benefit from this move. The state’s existing wind and solar power plants, combined with additional procurements from SECI, will help mitigate the state’s reliance on conventional, coal-based power plants. With this decision, Andhra Pradesh also takes a step closer to achieving its renewable energy goals and contributing to India’s broader vision of achieving 500 GW of non-fossil fuel capacity by 2030.
3. Greening India's Electricity Grid Has a Long Way to Go
While India has made notable progress in expanding its renewable energy capacity, greening the country’s electricity grid remains a long-term challenge. The transition to a green grid involves not just increasing the share of renewable energy but also overhauling the existing transmission and distribution infrastructure to handle renewable energy’s intermittent nature. Solar and wind power are highly dependent on weather patterns and time of day, which means the grid must be capable of managing fluctuations in supply and demand.
Currently, India’s grid infrastructure is ill-equipped to handle the high variability and decentralization of renewable energy sources. Grid integration of renewable energy requires significant upgrades, including enhanced storage capabilities, better grid connectivity, and more flexible energy management systems. Additionally, the power sector needs to increase investment in transmission lines to connect renewable energy-rich areas like Rajasthan and Gujarat to high-demand centers.
Moreover, integrating renewables into the grid requires a drastic shift in operational strategies. India’s power grid operators, who have traditionally relied on coal and gas-fired plants that offer consistent baseload power, must adapt to managing an energy mix that fluctuates based on weather conditions. While the country has made some progress in the development of grid-scale storage technologies like pumped hydro and battery storage, these solutions remain underdeveloped and require substantial investment.
Despite these challenges, India’s push toward a green grid is a critical component of the nation’s climate action plan. The government has set ambitious targets for renewable energy capacity, and as renewable penetration increases, greening the grid will become a top priority. The coming years will see increasing investment in both storage technologies and grid infrastructure, but it will take time to build the capacity and resilience needed to fully transition to a green electricity grid.
4. Tata Power DDL Joins Hands with Probus Smart Things to Advance Smart Metering Technology
Tata Power Delhi Distribution Limited (Tata Power DDL) has partnered with Probus Smart Things to advance the adoption of smart metering technology in the Delhi region. The collaboration aims to enhance the efficiency, accuracy, and reliability of electricity consumption data, which is crucial for improving billing accuracy, reducing losses, and providing better customer service. Smart meters are an essential component of the next generation of electricity grids, offering real-time data collection, two-way communication, and improved control over energy consumption.
By installing smart meters, Tata Power DDL will be able to remotely monitor electricity usage, detect faults, and provide customers with detailed insights into their energy consumption patterns. This will allow consumers to manage their electricity usage more efficiently and reduce wastage, leading to cost savings and a more sustainable energy system. Additionally, smart meters will help minimize human error in billing, leading to greater transparency and improved customer satisfaction.
This partnership is part of India’s broader push toward digitalization in the power sector, with many utilities investing in smart grid infrastructure to improve operational efficiency and integrate renewable energy more effectively. As India strives to modernize its electricity grid, initiatives like the Tata Power DDL-Probus Smart Things collaboration represent a crucial step in the evolution of a more reliable and transparent power sector.
5. India Considering Bailout for Indebted Power Distribution Utilities, Document Says
India is reportedly considering a bailout for its indebted power distribution utilities, which have been struggling with large-scale financial burdens and operational inefficiencies. According to sources, the government is exploring a potential financial support package to help state-run distribution companies (discoms) recover from their mounting losses. These utilities are often unable to collect full payments from customers due to tariff discrepancies, outdated infrastructure, and inefficiencies in energy distribution. As a result, many of them are reliant on government assistance to stay afloat.
The bailout plan aims to address these challenges by offering financial relief to discoms, which would be used to clear outstanding debts, improve operational efficiency, and upgrade infrastructure. This support is seen as crucial to ensuring that power distribution in India remains reliable as the country transitions toward a greener and more modern power sector. Without a healthy distribution system, India’s renewable energy expansion could be undermined by bottlenecks in transmission and inefficiencies in the delivery of electricity.
However, critics of the bailout argue that it could create moral hazard, encouraging the continuation of inefficient practices without substantial reform. Moving forward, the government will likely need to balance financial support with a push for greater accountability and efficiency in the power distribution sector.
6. Tata Power-DDL Partners with Probus Smart Things to Enhance Smart Metering Technology
Tata Power Delhi Distribution Limited (Tata Power DDL) has once again strengthened its partnership with Probus Smart Things, with a specific focus on enhancing smart metering technology. This collaboration aims to further integrate advanced digital solutions into the company’s operations, enabling customers to better manage their energy consumption. By leveraging Probus Smart Things’ innovative smart metering technologies, Tata Power DDL is taking a significant step toward creating a more efficient, transparent, and customer-friendly energy system.
Through the installation of advanced smart meters, Tata Power DDL will be able to provide real-time energy usage data to its customers, helping them to track and reduce their energy consumption. The initiative will also support the company’s broader objectives of reducing energy wastage, improving billing accuracy, and enhancing operational efficiency. Additionally, smart meters are key to integrating renewable energy sources, as they can handle fluctuations in energy supply from solar and wind sources, ensuring a more stable and reliable power grid.
This collaboration reflects the growing trend toward digitalization and smart technologies in the energy sector. Smart metering is seen as a critical enabler for the transition to a smart grid, which will help India manage its energy demands, reduce losses, and integrate clean energy sources more efficiently.
7. Govt Aims to Put Maximum Number of Critical Blocks on Auction by 2031: MoS Satish Chandra Dubey India’s government aims to auction the maximum number of critical mineral blocks by 2031, according to Satish Chandra Dubey, the Minister of State for Mines. This initiative is part of a broader strategy to secure the country’s access to essential minerals that are vital for industries like electric vehicles, renewable energy, and electronics. The auctioning of these blocks will allow private players to tap into India’s rich mineral resources, which will, in turn, support the country’s energy security and industrial growth.
Critical minerals such as lithium, cobalt, and nickel are in high demand globally, and India must secure a reliable supply to meet its renewable energy targets. The auction process is expected to improve resource allocation and reduce dependence on imports. However, there are challenges in ensuring the environmental sustainability of mining practices, as well as ensuring that the benefits of mineral extraction are equitably distributed to local communities.
This policy move signals India’s commitment to bolstering its position in the global minerals market, ensuring that it has the resources to meet its ambitious clean energy and industrialization goals.
Disclaimer: This analysis is based on general market trends and should not be construed as financial or investment advice. It is essential to conduct thorough research and consult with qualified professionals before making any real estate decisions.
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