MoP announces National Framework for Promoting Energy Storage Systems

The Ministry of Power (MoP) has announced the National Framework for Promoting Energy Storage Systems. The initiative aligns with the country’s commitment to employ renewable energy sources and to reduce greenhouse gas emissions.

The main goals of this framework are to encourage the deployment of energy storage systems (ESS) while reducing reliance on fossil fuel power plants, ensuring a steady supply of round-the-clock renewable energy, reduce emissions, and minimise energy costs. Additionally, it aims to promote innovation in energy storage technologies, enable fair access to energy storage for all segments of the population, and improve grid stability and dependability through the deployment of ESS. Furthermore, the objective is to use policy and regulatory measures, financial and fiscal incentives, and performance-based incentives to assist the development and installation of ESS.

With respect to storage requirement, the Central Electricity Authority has estimated that by 2026–2027, 16.13 GW of ESS capacity will be needed to integrate additional renewable energy capacity, with significant expansion expected in coming years. The government’s dedication to advancing energy storage technology is demonstrated by the considerable overall fund demand for pumped storage projects (PSP) and battery energy storage system (BESS) for the years 2022–2027, which is Rs 542.03 billion and Rs 566.47 billion, respectively. By 2047, the need for energy storage is anticipated to rise to 320 GW, which includes 90 GW PSP and 230 GW BESS, with a storage capacity of 2,380 GWh.

With regard to legal status to ESS, the electricity amendment rules, 2022 notified that the ESS can be used independently or in combination with generation, transmission, and distribution infrastructure and ESS has to be considered as a part of the power system. Furthermore, MoP had also notified long-term trajectory for energy storage obligations which outlines a minimum per cent of power consumption that must be sourced from renewable sources through ESS within a distribution licensee’s service region.

The framework further provides several policy measures and incentives, such as requirements for energy storage, a waiver of inter-state transmission system fees for ESS use, rules for BESS procurement, and the inclusion of ESS in the infrastructure harmonised master list. It intends to offer stakeholders a resource to help them comprehend the government’s strategy for energy storage and its importance in India’s energy transformation.