Why adding more solar and wind energy doesn't eliminate the need for gas

Grid India recently asked gas-based power stations to prepare for additional generation, anticipating the need for greater grid support during the monsoon season

India has rapidly expanded its renewable energy capacity over the past decade, with solar and wind emerging as key pillars of its clean energy transition. This summer, renewable energy met a significant share of India's record daytime electricity demand, with solar alone supplying around 22 per cent of power during the country's first-ever 256 GW demand peak in April.

 

At first glance, that should mean less dependence on fossil fuels. Yet, even as renewable energy's share in the power supply continues to grow, Grid India recently asked gas-based power stations to prepare for additional generation, anticipating the need for greater grid support, The Indian Express reported.

   

The June 10 advisory asked gas-fired power plants to make fuel procurement arrangements, saying additional gas-based generation may be required for 7-8 days in June. The assessment was based on projected electricity demand, planned and forced outages, renewable generation forecasts, hydro availability, and prevailing weather conditions.

 

What does this mean for India's clean energy push?

 

While renewable energy reduces the need for coal and gas to generate electricity throughout the day, it also creates a new challenge for grid operators. Unlike coal-fired plants, solar and wind generation depend on weather conditions and the time of day.

 

Solar output drops after sunset, even as electricity demand typically rises in the evening. To keep the grid stable, operators need power plants that can quickly increase generation whenever renewable output falls. This is known as grid balancing or providing flexible generation. Generally, when solar and wind output falls, hydroelectric power picks up the pace.

 

During evening peak hours, hydropower stations can quickly increase generation to compensate for the decline in solar output. In fact, hydro played a crucial role in balancing the grid during last summer's peak demand. But this year is different.

 

With forecasts of below-normal monsoon rainfall, hydroelectric stations are conserving water in their reservoirs, which serve both power generation and irrigation. As a result, they have less flexibility to ramp up generation during evening peak hours, increasing the need for gas-fired power plants to bridge the gap.

 

However, relying on gas is not as simple as it sounds. India's gas-based power fleet does not always have access to affordable fuel. Grid India’s advisory itself reflects this challenge. Rather than directing plants to increase generation, Grid India first asked them to make fuel procurement arrangements.

 

Why is relying on gas becoming more difficult?

 

Unlike coal, which is largely sourced domestically, India's gas-based power sector depends significantly on imported liquefied natural gas (LNG). This makes India vulnerable to global supply disruptions and price volatility.

 

This year, the conflict in West Asia has disrupted global supplies and created uncertainty over fuel availability.

 

But the growing dependence on gas is already visible in the market. According to data from the Indian Gas Exchange (IGX), power sector companies purchased 1.39 million MMBtu of natural gas between June 1 and June 23, compared with virtually no purchases during the same period last year. Between April and May, spot-market purchases by power companies jumped 340.4 per cent year-on-year.

 

The surge in demand has come despite a sharp increase in prices. Average spot gas prices rose 43.5 per cent year-on-year in April and 77.5 per cent in May, reflecting the impact of tighter global supplies.

 

That makes gas less a rival to renewables and more a stopgap for a grid in transition. The more India depends on solar and wind, the more it will need storage, flexible generation, better forecasting and demand management to ensure that clean power also remains reliable.