Hybrid Wind-Solar Plant – India

According to a new report, a solar and wind hybrid plant would cost 5%-7% less in capital costs, compared to a stand-alone wind or solar plant. India has massive plans to grow renewable energy sources of power generation over the coming decade. While the ministries pass policies for the development of the same, they have a more theoretical rather than a practical approach.

A recent example is a debate around the imposition of safeguard duties on solar imports from China and Malaysia. While the government had good intention behind this duty imposition i.e. to safeguard the interests of the domestic solar panel manufacturers, they ended up screwing these very companies by not excluding SEZ units from the ambit of duty imposition. These duties were supposed to be effective from July 31, 2018, but sadly the whole industry is waiting for the final decision. All these confusion not only delays the desired growth in the industry but also creates a cloud of confusion in the minds of the parties involved, dissuading them from doing further business.

Also, read about Gujarat’s ‘Wind-Solar Hybrid Power Policy-2018?

Advantages of Hybrid Wind-Solar Plant

Why I narrated the safeguard duty story above, is because the Indian market is very price sensitive. Even though the country has one of the lowest solar tariffs in the world, it faced a lot of protests regarding duty imposition. Though the overall cost of solar has declined by leaps and bounds when compared to two decades earlier, the initial installation cost is still considered expensive by a majority of the Indian common masses. Now a recent report by Icra has established that a hybrid solar-wind energy plant would entail 5%-7% less in capital costs. This is due to cost sharing on account of common land, transmission infrastructure, approach roads etc. A hybrid solar-wind energy plant would, therefore, offer better IRRs to the developers, with all other things remaining constant.

Challenges of Hybrid Wind-Solar Plant

Consequently, SECI has issued tender for a 2500 MW hybrid plant to be connected to inter-state transmission system (ISTS), under a 25-year power purchase agreement. The only challenge with these plants is the discovery of a location which is suitable for both wind and solar power generation. The electricity generation mix could also pose a challenge to grid security and stability. Difficulties in the integration of power and lack of large and adequate transmission infrastructure are other problems.

Will this report encourage developers to go for hybrid solar and wind plants? Well, only time will tell!