Power Play: Can dynamic tariffs tackle India's rising electricity demand?

As the share of variable renewable energy (RE) increases, so does the need for solutions that balance out its intermittent nature. In FY 23, variable RE accounted for 11.8% of India’s electricity generation. Going forward RE capacity addition is expected to be dominated by solar, which sees peak generation during daytime hours. Measures that make electricity cheaper when it is plentiful can be an efficient way to balance the grid.

To what extent can measures such as dynamic tariffs, acting in concert with innovative procurement formats such as round-the-clock (RTC), limit the need for expensive storage solutions, including pumped hydro?