Model‐based approach for planning renewable energy transition in a resource‐constrained electricity system—A case study from India

Globally, electricity systems are going through transitions. The contributions from renewable energy‐based power generation, both in installed capacity and electricity generation, are moving from marginal to the mainstream. India is not an exception; it is aggressively pursuing this transition by fixing steep targets for renewable capacity additions. While the cost of renewable energy sources is expected to fast reach grid parity, the policy interventions play a critical role in ramping up the efforts to support the proposed investments in renewable capacity and renewable electricity generation. In this respect, this research attempts to analyze the effectiveness of renewable energy policies such as Renewable Purchase Obligation (RPO) and Renewable Energy Certificate mechanisms in tapping the renewable energy potential in India. We propose a mixed‐integer linear programming model‐based approach to evaluate the effectiveness of the above interventions in the Indian context. The model is developed and validated as a low carbon electricity planning tool to optimally meet the dynamic electricity demand and RPO targets as well as to manage the unmet total electricity demand and RPO targets. The Karnataka state electricity system (a state in south India) is chosen as a case study. The results suggest that Karnataka Electricity System is moving toward a sustainable renewable energy future even without any support from nonsolar Renewable Energy Certificate policy. However, policy interventions are critical for optimally utilizing the solar generation capacity.