With India aiming to set up 175 GW of renewable energy capacity by 2022, deploying BESS will only aid network operators, mitigate renewable resources’ variability, and reduce congestion on the grid
Despite these prevalent challenges, energy storage as an innovative solution is increasingly being sought globally to meet the emerging requirements of the developed as well as the developing nations. And installation of battery storage energy system (BESS) is increasing dramatically as energy markets are being transformed to allow for the use of more diversified resources. Reports that are generally available forecast that the global BESS market is expected to exceed more than $9 billion by 2024 at a compound annual growth rate of 34 per cent. BESS are crucial for enabling the effective integration of renewable energy and unlocking the advantages of local generation and a clean, robust energy supply, with value being demonstrated to grid operators for management of the variable generation of renewable energy.
With India aiming to set up 175 gigawatt (GW) of renewable energy capacity by 2022, deploying BESS will only aid network operators, mitigate renewable resources’ variability, and reduce congestion on the grid. The growing renewable power capacity clubbed with appealing business for electric vehicles will strengthen the rationale behind BESS. Recent amendments brought about by CERC in the ‘Connectivity Regulations’ and the inauguration of the first grid-connected BESS have drawn the attention of industry to energy storage systems in India and their imperative role in the Indian context. Initial steps have also been initiated by certain state governments to develop storage capacities. Recent news reports have highlighted the initiative of Haryana Electricity Regulatory Commission seeking Haryana Power Purchase Centre to study the financial viability of a solar project coupled with battery energy storage system, while another report has claimed development of a 14 MW solar project with an aggregate battery storage capacity of 42 megawatt hour (MWh) in Leh and Kargil. Although, the above news has not been officially validated but indications themselves are evidence of the positive interest the state governments have in energy storage projects.
Indian corporates have also exhibited a keen interest in the development of energy storage projects and are pursuing this innovative solution. Recently, Sterlite Power submitted its bid for two projects invited by the Salt River Project (SRP) in Arizona, USA for a cumulative capacity of 400 MW. Sterlite proposes to provide for SRP’s capacity and energy needs, including ancillary services. Given the immense potential in the energy storage sector and its perfect integration with the growth of renewable energy sector, it may be apt to quote a Forbes news report which states, “Cheap batteries mean that wind and solar will increasingly be able to run when the wind isn’t blowing and the sun isn’t shining”. Success of energy storage system will, however, have to be backed by the government and the government will have to consider providing policy incentives in line with practices in countries such as South Korea, as a result of which South Korea overtook the US in 2017, to become the largest battery energy storage market globally.
Deployment of BESS may not be the ultimate resolution to the rising electricity demand in India with installed capacity likely to cross 600 GW by 2030, but its potential also cannot also be undermined, especially when BESS can play a pivotal role in addressing the call for better demand response in India.
[Kaif Ahmed, principal associate at Cyril Amarchand Mangaldas also contributed to this piece]
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