Energy

Grid-scale storage can play vital role in boosting India’s renewable energy transition

Grid-scale battery storage systems that can store energy and use it during the night can accommodate a high share of renewable energy and, at the same time, contribute to grid stability

 
By Maitreyi Karthik
Published: Monday 25 September 2023
Representative image: iStock

Energy storage is key in maintaining grid flexibility during surplus and deficit power generation. Around 34 gigawatts (GW) or 136 gigawatts per hour (GWh) of battery energy storage system is expected to be installed in India by 2030, according to a report by the Central Electricity Authority (CEA).

However, there are a lot of challenges on this front. Researchers dealing with battery energy storage technologies face multiple issues while sourcing raw materials for technology. Most of them are linked to rare earth minerals that are not abundant in the country. 

To address this problem, the Centre announced a Viability Gap Funding for developing 4,000 MWh of battery storage systems in the budget earlier this year. The government’s allocation of Rs 3,760 crore in viability gap funding for battery energy storage systems would increase the integration of renewable energy into the power grid.

One of the methods of integrating battery storage technology with the grid is Behind the Meter Battery Energy Storage System (BESS). This system — used mainly to provide backup during power failures or to store the excess rooftop solar photovoltaic (PV) generation — can cater to residential and commercial owners.

According to the International Energy Agency’s India Energy Outlook 2021, India may establish about 140-200 GW of battery energy storage capacity by 2040, which is so far the largest capacity for any country.

Ongoing developments such as the increase in renewable energy deployment, transition towards decentralised power systems, increased deployment of hybrid energy systems and the rising need for grid stability, energy access and energy security will likely add momentum to this.

In the upcoming years, with a rise in investments, the focus will be not only on lithium but also on other emerging technologies such as redox flow batteries, supercapacitors and hydrogen.

India continues to add solar capacity rapidly, with about 77 per cent of the total capacity addition in 2022-23, indicating its importance in the power grid. 

With increased penetration of solar PV in the grid, many balancing resources would be needed as solar power is intermittent and can be generated only during the daytime. 

In order to meet this requirement, Indian policymakers have been implementing measures to ensure that energy storage systems (ESS) will help in the transition. 

According to the latest CEA report on ‘Optimal Generation Mix 2030’, India would require 60.63 GW of energy storage capacity by 2030. This includes about 18.9 GW of pumped hydro storage technology (PHS) and about 41.65 GW of Battery Energy Storage System (BESS), totalling about 336.4 GWh. 

The total installed capacity of PHS technology in India is about 4.7 GW as of March 2023, with an additional 2.7 GW in the development stage. An additional PHS capacity of 11.4 GW is required by 2030, along with the projects in the developmental stage.

The National Renewable Energy Laboratory (NREL) anticipates Battery ESS to significantly add to the capacity mix by 2047, with about 237 GW or 13 per cent of the total installed capacity.

This significant addition in BESS after 2030 results from falling capital costs and increased deployment of RE sources. These projections highlight the need for India to be ready to integrate a significant number of renewables into its power mix.

Rooftop solar PV 

Rooftop Solar PV (RSPV) with storage is beneficial for both, distribution companies (DISCOMs) and end-users.

Grid-scale battery energy storage systems that can store energy and use it during the night can accommodate a high share of renewable energy and, at the same time, contribute to grid stability. 

RTSPV uptake in India can largely be attributed to the commercial and industrial (C&I) segment supported by specific policies of the respective states and central government.

However, the low offtake of rooftop solar PV against the target of 40 GW indicates that the policies have not been entirely in tandem with the interest of multiple stakeholders, resulting in only 10.8 GW of capacity addition, contributing to a mere 27 per cent achievement of the target.

Considering the potential of the residential RTSPV and the developments in the C&I segment in rooftop solar PV, it becomes imperative to consider scaling rooftop solar PV in the residential segment to increase the share of the generation of clean power feeding into the grid. 

This requires experimenting with various models involving multiple stakeholders. Most importantly, distribution companies that have access to most of the grid-connected households in their respective areas of power supply have a critical role.

They can play a leading role in terms of mobilising the consumers, thereby aggregating the potential and demand for rooftop solar PV, which would also increase their reliance upon non-conventional sources of energy in terms of procurement and supply, especially in rural areas.

Various new technologies, such as light-emitting diodes and brushless direct current motors, among others, have been introduced to lower energy consumption. These technologies would help improve grid resiliency.

When the grid is unidirectional, the power can be injected by only one generator, such as thermal power plants. Now, with the generation from RTSPV being fed to the grid, the grid can accept power from both fossil-based generations and clean power. However, the grid is still largely unidirectional and is expected to become bidirectional in the future.

Urban areas in the country include many residential buildings and structures that can generate a huge amount of clean power.

With new solar PV panel technologies such as building integrated photovoltaics (BIPV) — which can work effectively with more clean power generated from the building injected into the grid through net-metering technology — more clean energy can be fed into the grid.

This would lead to an overall increased generation of clean energy share from the residential sector, with reduced consumption from the grid.

A cluster-based approach would help increase the uptake of the RTSPV in areas with similar characteristics in the units, such as similar geographical locations, similar technology deployed in the location, and similar development issues.

Collecting information and understanding the issues in such cases tend to become easier and more resource-efficient. This leads to more conclusive takeaways from such an approach. The electricity consumption in a cluster shows the potential of rooftop solar PV systems in such units to reduce the expenses incurred in meeting their electricity/energy demand.

The market for BESS in India is set to see an exponential rise in the next few years. A single BESS provides various value streams, and as the market develops, technology improves, and economics develops, various foreign investment opportunities will increase for the technology.

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