India is increasingly harnessing renewable power sources like wind and solar to contain the carbon footprint of its power sector. But the disadvantage with them is they are unreliable, infirm sources of power and can cause huge volatility in the grid, especially during the peak period when electricity demand goes up by 15% to 20%. Unless new market instruments like time-of-use pricing are introduced to elicit demand-based response from customers, supplying renewable power to the grid on a large scale might not be feasible.
That would, in turn, require a well-developed retail electricity market with enough choice for customers to switch over to competing suppliers. The government can act as an enabler and provide requisite regulatory and policy support.
Click headling to read more--
Via Chuck Sherwood, Senior Associate, TeleDimensions, Inc