MoP issues clarification regarding the use of ESS in various applications in power sector

The Ministry of Power (MoP) has clarified that energy storage systems (ESS) can be used either on standalone basis or in complimentary with generation, transmission and distribution. ESS shall be accorded status based on its application area, that is generation, transmission and distribution. The standalone ESS shall be a delicensed activity at par with a generating company. If the owner/developer seeks to operate the ESS on a standalone basis it will be registered with the Central Electricity Authority (CEA), giving the capacity and the location. It will also need to comply with rules regarding safely etc. as laid down by the CEA. The capacity shall be verified by the CEA.

In January 2022, NTPC Renewable Energy, a wholly-owned subsidiary of NTPC Limited, issued a request for proposals from developers to build interstate transmission system (ISTS)-connected energy storage systems with a capacity of 3,000 MWh and a minimum capacity of 500 MW anywhere in India. NTPC aims to use the energy storage installations to meet its round-the-clock (RTC) renewable energy requirement with a wind-solar profile under the service model. In the same month, Fluence and ReNew Power announced a partnership to form a new company to meet the needs of local customers across India and to address the country’s rapidly growing energy storage market. The joint venture is expected to start operations in H1 2022.

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