July 10, 2025
11 PM
India can add 70% of round-the-clock clean electricity equalling 52 GW by 2030 at lower cost compared to annual matching - saving grid operators US$1 billion (almost Rs. 9 thousand crore per year)
Analysis shows companies can procure hourly-matched clean electricity at lower capital costs and at higher operational cost savings compared to annual matching.
Media release
London, 11 July, 2025: New TransitionZero analysis shows that India can deliver 52 GW of round-the-clock (RTC) clean electricity by 2030 at lower cost compared to annually matched clean electricity. The 52 GW represents 70% of a hypothetical RTC clean electricity portfolio designed to meet 5% of India’s total national electricity demand. The system value contribution of RTC clean electricity portfolios exceeds the cost of annual matching, since the latter requires more capacity build out. This generates savings of US$1 billion (Rs. 9 thousand crore) for grid operators per year from 2030.
At the same time, emissions can be reduced by 2.4% at systems level with carbon abatement costs roughly three times cheaper compared to annual matching. The results also show that companies can drive even greater decarbonisation at matching levels above 70%. At 100% RTC, India-wide system emissions are reduced by 7% compared to annual matching.
RTC clean electricity – also referred to as 24/7 carbon free energy (CFE) – means matching every hour of electricity use with electricity from carbon-free sources. It ensures clean power is actually available when it is needed, all day, every day, instead of buying annual clean energy certificates. This approach helps drive real decarbonisation of the electricity system by encouraging clean energy at all times, not just on paper. This approach is especially important for heavy industries and data centres, whose electricity demand is typically flat around the clock, making hourly clean energy matching essential for their decarbonisation.
TransitionZero’s analysis shows that incentivising RTC clean electricity procurement is essential for least-cost grid planning and can deliver significant savings for India’s grid operators, who play a pivotal role in the country’s electricity sector transformation. It also helps build a more resilient and sustainable market for renewable energy power purchase agreements (PPAs). The growing need for battery storage and demand response is already evident in Europe, where Spain’s renewable energy market has seen a sharp decline in PPA capture rates. By proactively incentivising flexibility solutions, India can get ahead of these challenges and accelerate its electricity transition.
Irfan Mohamed, South Asia Analyst at TransitionZero, explained:
“Our model shows that in India commercial and industrial customers can meet 70% of their hourly electricity demand with carbon-free electricity at a cost below that of annual renewable energy matching, while driving greater levels of decarbonisation and providing significant benefits to the Indian electricity system.”
The Greenhouse Gas Protocol (GHGP) is in the process of a multi-year revision of its standards. A central focus of this review is the update to the Scope 2 guidance – the rules governing how companies account for emissions from purchased electricity. While hourly emissions accounting is emerging as the preferred method, the GHGP does not set targets or grade performance.
Matt Gray, Co-founder and CEO at TransitionZero, explained:
“Our analysis shows round-the-clock clean electricity planning and procurement is a 'no regrets' option for India’s energy planners, grid operators, and large corporations. It shows that companies can procure hourly-matched clean electricity at minimal extra cost, and grid operators can save money through least-cost grid planning. In doing so, governments can help deliver the energy transition at the lowest cost.”
About TransitionZero
TransitionZero is a climate analytics nonprofit established in 2021. We provide system modelling data, software and analysis to support energy transition planning decision-making. We are grant-funded by the Quadrature Climate Foundation, Google.org, Sequoia Climate Foundation, Bloomberg Philanthropies, and European Climate Foundation, among others. Our data, software and analysis is used by developers, financiers, planners and think tanks internationally.
Analysis methodology
TransitionZero's study on the system-level impacts of 24/7 CFE in India uses a sophisticated modelling approach to understand how different clean energy procurement strategies affect the grid and procurement costs. It involves running three main scenarios for 2030: a "brownfield" reference scenario (assuming no CFE or annual matching), a 100% annual matching scenario, and various hourly matching scenarios (from 70% to 100% CFE hourly matched). It considers factors like demand growth, technology costs, fuel costs, and national policies to determine the optimal capacity expansion and operation of power plants, storage, and transmission, aiming for a system-wide cost-optimal solution. The study specifically looks at 5% of the national demand shifting to hourly matching. The model explores how different technology mixes (solar, wind, batteries, and long-duration energy storage) affect the system's ability to meet CFE targets, costs, and emissions. A table below compares TransitionZero’s 24/7 CFE modelling approach with a similar study produced by Ember.
Notes: TransitionZero has also modelled Japan, ASEAN (10 countries including Malaysia and Singapore) and Taiwan.