Page 48 - Policy Economic Report - April 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

After the issuance of Resource Adequacy Guidelines, CEA has been carrying out the Resource Adequacy
(RA) plans for all the Discoms. To begin with, CEA completed the exercise for all Discoms up to 2032, and
now all of them have been updated to 2034-35. CEA has also finished the national level exercise up to
2034-35. Since the plan is dynamic and is mandated to be revised every year, it was thought to develop a
common tool for all and share it with them free of cost to play with it. It will also help integrate the studies
easily and bring out the optimum solutions for the country.

The model explicitly considers:

1. Chronological operation of the power system
2. All unit commitment constraints, including technical minimum, minimum up and down times,

and ramp-up/ramp-down rates
3. Endogenous demand response
4. Ancillary services, and many more

The benefits of the tool include:

1. Ensuring adequate resource adequacy (neither less nor more) in the electricity grid. Zero load
shedding, No stressed capacity and least cost solutions.

2. Optimisation of the cost of power system generation expansion and system operation while
considering the benefit of demand response.

3. Optimisation of energy and ancillary services.
4. Optimisation of size and location of storage.

The software has been developed entirely in India with the active guidance of CEA, ensuring complete
transparency. CEA will update and upgrade this tool based on further suggestions from the users
(Discoms/ load despatchers) of this software.

The launch event highlighted the collaboration between CEA, The Lantau Group (TLG) and the Asian
Development Bank (ADB) under the Technical Assistance program.

India Achieved Historic Milestone in Renewable Energy Capacity Addition in FY 2024-25

The Ministry of New and Renewable Energy (MNRE) achieved historic milestone in the renewable energy
sector for the financial year 2024-25. Under the leadership of Prime Minister Shri Narendra Modi, the
country has added an unprecedented 25 GW of renewable energy capacity, marking an increase of nearly
35% over the previous year’s addition of 18.57 GW.

Solar Sector Drives Renewable Surge

India’s solar power sector led the renewable energy growth, with capacity additions soaring from 15 GW
in FY24 to nearly 21 GW in FY25, a remarkable 38% increase. The country also achieved the significant
milestone of surpassing 100 GW of installed solar capacity this year.

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