Why India Needs Energy Storage Systems?

Energy storage systems are needed to integrate multiple and variable energy sources. The Government of India knows the importance of energy storage systems for Indian market and that’s why promoting it.

It is possible to improve power quality, lower peak demand, expand the capacity of the distribution and transmission grids, prevent or lessen deviation penalties, and other benefits by enhancing the system’s overall flexibility. When combined with renewable energy, the use of energy storage devices by residential, commercial, and industrial consumers may increase the quality and dependability of their power supply. Today Energy Storage Systems have become a need of the hour for the Indian energy industry.

Energy storage systems reduce the amount of diesel used for backup power applications. In terms of cost and performance, energy storage is the most important part of EVs. The push for electric mobility will greatly lessen the nation’s reliance on imported fossil fuels and energy storage technologies by adopting indigenous, contemporary, and reliable energy storage.

Energy Storage Systems are very essential for India: Indian Power Ministry

India now has 150 GW of installed renewable energy capacity, which puts it within striking distance of achieving its 2022 objective of 175 GW. The government still has a 2030 target of 500 GW, which includes 450 GW of wind and solar energy.

To achieve this goal, it is important to make plans for the best resource use and selection of [the] appropriate resource mix to fulfill the country’s expected energy demand while ensuring the nation’s energy security.

To integrate huge amounts of renewable energy, energy storage systems technology, such as battery energy storage systems (BESS), pumped hydro energy storage (PHES), or alternative technologies like green hydrogen or green ammonia storage, will be crucial.

How Power Ministry of India is defining Energy Storage Systems?

  • Energy storage systems are part of the power system, as defined in India’s 2003 Electricity Act.
  • ESS can be utilized independently or in conjunction with other assets for production, transmission, and distribution (T&D). The status will be given based on the application domain that each system is intended for.
  • ESS can be created, owned, leased, and maintained by a producing firm, a T&D licensee, a system operator, or a stand-alone energy storage service provider. It can also be regarded as a generator, a component of the grid, or a larger electricity network.
  • It will have the same legal standing as the owning entity if it is owned and operated by and co-located with a producing station, transmission licensee, or distribution licensee.
  • It will have the same legal standing as its owner but will be treated “at par with a standalone ESS” for scheduling, dispatch, and “and other matters” is owned and operated by a producing station or distribution licensee but not co-located with it.
  • ESS developers and owners have the option to sell, lease, or rent all or a portion of their energy storage resource to utilities involved in power production, transmission, or distribution. Additionally, they could offer to sell, lease, or rent their property to one of the regional Load Despatch Centers in India, which coordinates bulk energy network operations throughout the nation.
  • The owner can still buy, store, and sell electricity using all or a portion of the energy storage device.
  • Activity involving independent energy storage systems will be delicensed on par with generation firms. Individuals who wish to operate a standalone ESS must register with India’s Central Electricity Authority, provide capacity and location details, and adhere to all applicable safety and other regulations. CEA will confirm capacity information.
  • According to the Electrical Rules published last year regarding transmission system planning, development, and collection of interstate transmission charges, standalone energy storage systems will be given connectivity to the electricity network.

AIS Podcast: India’s Roadmap to Net Zero

Role of Energy Storage in the Indian Renewable Energy Industry

The strategy of “Move to Sustainable Energy” in India is gaining momentum. The policy change is transformative, as seen by Prime Minister Narendra Modi’s pledge at COP26 to install 500 GW of non-fossil fuel electricity capacity by 2030, as well as the budget’s green initiatives and the start of the first phase of the Green Hydrogen policy.

The energy future does indeed seem promising, but it will take a relentless and laborious multi-stakeholder effort to make it a reality, including efforts by renewable energy firms, legislators, investors, the public sector, and financial institutions.

Energy storage has been correctly identified by the Center as a key piece in the energy value chain.

This is crucial because India wants to boost its generation of renewable energy (RE) from the current 12–13% of its overall generation to over 33% to satisfy its climate targets. The installation of 300 GW of renewable energy in less than nine years is unparalleled. As can be seen by India’s amazing success in the solar industry alone, from just 35 MW in 2011 to 35,000 MW in 2021, the effort is already in process.

Three fundamental applications are largely being addressed by battery storage. These include energy shifting or arbitrage, mid- and long-duration energy storage, and frequency response control.

Both stationary storage needs and electric transportation will present major prospects for India’s battery storage demand. According to NITI Aayog, the market for battery storage in India is predicted to grow to more than 1000 GWh by 2030, representing a $250 billion industry from a very small base.