Low-carbon planning in a resource-constrained electricity system: A case study from India

Abstract

India’s electricity generation system is faced with three critical challenges—energy and financial resource constraints, growing emissions of greenhouse gases, and meeting the ever-increasing and dynamic demand for electricity. A probable solution to these issues is to take judicious decisions with respect to adoption of low-carbon and renewable energy sources and technologies, and optimal management of existing installed capacity to minimize the demand–supply gap. Simultaneously, addressing these challenges results in a complex decision-making problem. We present here a mathematical model to solve this problem. The model integrates renewable energy resources, targets related to abatement of carbon emissions, and effective management of existing installed capacity with an objective to match the supply and demand for electricity dynamically while attempting to minimize emissions, emission costs, and the overall supply costs. The model is validated using the data from Karnataka state electricity system through four scenarios. The results show that the share of renewable electricity generation increases with a renewable energy penalty cost and renewable energy demand specified by an obligation to purchase it. Similarly, cost-effective reduction in emissions and increase in the share of renewable electricity generation happen simultaneously in the presence of both renewable energy and emission penalty costs but without emission reduction targets.