Stakeholders discussed market-based solutions, forecasting, and grid reforms to improve wind energy integration and stability in India’s power system.

Stakeholders Call for Smarter Systems to Support Renewable Growth

The need for market-based approaches, forecasting techniques, and international cooperation in facilitating the integration of wind energy in India’s power grid was emphasized by the Indian Wind Turbine Manufacturers Association in the Indo-German workshop on “Addressing Challenges in Grid Integration of Wind Energy.”

The workshop had representatives from the Ministry of New and Renewable Energy, NITI Aayog, Central Electricity Authority, and other stakeholders from India and Germany, focusing on the issue of variability in renewable energy and grid stability.

Experts at the workshop, noted that structured balancing systems and market-based approaches could offer scalable solutions for India’s evolving power sector. They also noted that using data and artificial intelligence can play a role in reducing imbalances, improve scheduling, and lower costs.

Participants also discussed the importance of developing ancillary service markets to support higher levels of renewable energy. Such systems would ensure flexibility, availability of reserves, and overall grid stability. Virtual power plants were also identified as a potential tool to aggregate distributed energy sources and enable coordinated power dispatch.

Santosh Sarangi, Secretary, MNRE, said, “Most countries are now trying to tackle the grid integration challenges. We must pivot away from a purely quantitative expansion to adding qualitative elements into our power system. And in this context, addressing the issues of grid resilience and flexibility by strengthening our transmission system, by upgrading our distribution network will be essential. In addition, using modern digital tools, AI tools to have advanced forecasting and digital monitoring will also be key.”

Rajesh Kulhari, Joint Secretary, MNRE, said “The Indo-German partnership offers valuable, valuable opportunities for technical exchange. Germany's experience in managing high shares of variable renewable energy provides important insights for India's evolving power sector. Germany's balancing group architecture, supported by transparent market signals and clear allocation of responsibility for forecasting and balancing, offers a useful reference point. Virtual power plants represent another promising frontier. We have a unified national grid with well-functioning power exchanges and a strong regulatory foundation built over decades. Further, we are already advancing the next generation of reforms, including hybrid and storage-linked PPAs, green energy open access and emerging instruments such as virtual power purchase agreements. As India scales up distributed solar, wind and battery storage, virtual power plants can play a transformative role in enhancing step- system flexibility and enabling market participation by smaller assets. Accordingly, India is well-positioned to build on the German experience.”

Aditya Pyasi, CEO, IWTMA, said, “Flexible grid integration, supported by smarter forecasting and scheduling mechanisms, is one of the most effective incentives we can provide to the wind manufacturing industry. It significantly de-risks the high and long-term investments required across the value chain.

As India moves toward higher renewable energy penetration, improving forecasting timelines will be critical. The closer forecasting gets to the actual power-injection window, the more efficient and reliable the system becomes. Currently, the 90-minute scheduling window presents certain operational constraints. If regulatory frameworks can progressively shorten this timeframe, it would meaningfully reduce risk not only for wind power but for the entire renewable energy sector. We would therefore encourage the Central Electricity Authority to explore regulatory provisions or grid codes that enable shorter forecasting windows while maintaining system stability. Greater reliance on spot markets and ancillary services will also be essential, as grid operators and market participants collectively take the next step toward integrating higher levels of renewable energy into the system”

The workshop concluded with a shared emphasis on strengthening Indo-German cooperation, aligning regulatory frameworks, and advancing forecasting solutions to support grid stability as India increases its renewable energy capacity.

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