While the low generation cost of renewable energy is often highlighted, it doesn’t always translate to low retail electricity costs for consumers. For instance, consider Germany and California, regions that pursued aggressive renewable expansions where retail electricity prices soared 3–4 times in just a few years. Moreover, emissions reduction in Germany has been minimal due to the reliance on backup fossil fuel generation, driven by the unpredictability of renewables in these regions.
Challenges in Wind Power Expansion
Demand-Supply Mismatch: Wind energy generation centers are often far from demand hubs, necessitating robust grid connectivity and transmission infrastructure. However, delays due to rights-of-way issues and limited capital investments have created bottlenecks.
Transmission Investment: Without a clear business case for hauling renewable generation to demand centers, transmission infrastructure investments remain at risk. The inadequacy of transmission capacity leads to high curtailment or even negative pricing of wind or solar based electricity.
Land and Legal Hurdles: Land acquisition challenges, legal disputes, and delays in clearances further slowdown wind project development.
Policy Shifts: Moving from feed-in tariffs to competitive auctions has also created uncertainty for investors, dampening confidence and funding appetite.
“…critical need for India to approach renewable capacity additions as part of a well-integrated electricity system, rather than simply expanding capacity to capitalize on subsidies…”
The Way Forward for India
India must adopt a long-term, system-based approach that ensures renewables are integrated seamlessly into the electricity grid, providing a reliable, affordable, and clean energy supply to consumers. Overcoming these structural and policy hurdles is essential to unlocking the true potential of wind and other renewable energy sources.
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