India plans for the first time to include energy storage as a requirement when a solar project is tendered this month, opening what could become a significant new market to battery makers such as Tesla Motors Inc., Samsung SDI Co. and Panasonic Corp.The state-owned Solar Energy Corp. of India, which is responsible for implementing the government’s green targets, will ask bidders to include a storage component in 100 megawatts of the 750 megawatts of solar capacity tendered in the southern state of Andhra Pradesh, Managing Director Ashvini Kumar said in an interview.
The intention of the pilot program is to reduce fluctuations in electricity supply in order to make possible the transfer of clean energy between states. India’s Prime Minister Narendra Modi has set a goal of 175 gigawatts of clean energy by 2022. The Andhra Pradesh project include 15 minutes of storage each for two solar installations.Warehousing power is considered a crucial component of India’s green targets. The requirement, if more broadly adopted, has the potential to invigorate the storage market because of India’s outsized ambitions for the industry. It would give manufacturers the scale they need to help bring down costs of battery storage that are holding back wider adoption.
“Once renewable capacity is large enough to start becoming a major problem for the grid, storage will come in a big way,” said Anish De, a partner for infrastructure and government services at consulting firm KPMG.