Puducherry’s electricity demand will grow to 3,686 million units (MU) by 2029-30, driven by industrial (37% growth) and domestic sectors amid India’s 500 GW non-fossil target and RPO mandates. Integrating high shares of variable renewables like solar and wind creates grid stress from mismatched peaks, steep evening ramps (up to 346 MW/hour), curtailment (up to 1.22% in wind-dominant scenarios), and market reliance (up to 3.35%). A wind-dominant renewable mix (WD scenario, 54-60% wind share) emerges as optimal, minimizing costs (₹4,869 crore total), emissions (0.09 tCO₂/MWh), and BESS needs (2-3% share) compared to solar-dominant cases.

Key Findings

Demand-side flexibility via redesigned Time-of-Use (ToU) tariffs (e.g., WD ToU2: 25% peak surcharge, 15% off-peak rebate, solar-sponge midday discount) and Active Demand Response (ADR) for industries cuts gross peaks to 613 MW, net peaks to 398 MW, and max ramps to 307 MW while phasing out low-PLF (<40%) coal units. These measures reduce total system costs by up to ₹60 crore (to ₹4,809 crore in ADR3), supply costs to ₹12.11/kWh (from ₹12.97/kWh baseline), RE curtailment by 56%, and market imports by 78% versus business-as-usual. Emission intensity drops to 0.084 tCO₂/MWh in advanced ADR, with flatter net-load profiles enabling 63% RE penetration and less storage cycling.

Policy Actions

• Diversify RE procurement: Prioritize wind (50-75% share) from multiple regions alongside rooftop solar to smooth ramps and cut coal/gas reliance.
• Revamp Time of Use tariffs: Expand to all consumers with solar-aligned rebates (10:00-16:00) and peak prices (6:00 – 7:00 and 17:00 – 23:00) to shift loads, lowering costs and curtailment.
• Introduce Active Demand Response programs: Contract industries for interruptible loads during critical hours, reducing peaks by up to 6 MW and enabling power generation and transmission asset deferral.
• Strategic BESS deployment: Site at distribution network level and at substations/RE pooling stations (785-796 MW needed) to handle evening ramps; incentivize behind-the-meter storage.
• Implementing these unlocks a resilient, low-cost grid with more than 60% energy from renewables, establishing Puducherry as a clean energy hub for green industries and sustainable tourism.