By Arif Aga, Director, SgurrEnergy India
India’s path to becoming a developed nation by 2047, as envisioned by the Prime Minister during his Independence Day speech on August 15, 2022, necessitates significant infrastructure enhancements and elevated living standards. A critical component of this journey is a substantial increase in energy requirements, driven by the country’s ambition for resilient, inclusive, and sustainable growth. The Indian government has outlined its climate commitments through updated Nationally Determined Contributions (NDCs) and a Long-Term Low Carbon Development Strategy, aiming to enhance the share of non-fossil fuel-based power capacity to 50 per cent by 2030.
In line with these objectives, the Ministry of Power (MoP) issued a year-wise trajectory of Renewable Purchase Obligations (RPOs) in September 2022, setting ambitious targets for the adoption of renewable energy (RE) and energy storage solutions. The obligated entities, predominantly state distribution companies (DISCOMs), are mandated to procure an increasing share of their electricity from RE sources, reaching a minimum of 43.3 per cent by 2030. This policy is designed to ensure a steady rise in renewable energy consumption, thereby contributing to India’s climate action goals.
As per NITI Aayog estimate, by July 2023, India had an installed RE capacity of 177.74 GW. However, to meet the 2029-30 RPO targets, a total capacity of 517.34 GW is required, necessitating an additional installation of 339.6 GW. The variability in RE generation due to weather and climatic conditions calls for a firm, dispatchable renewable energy (FDRE) supply. Energy storage systems (ESS) are pivotal in mitigating these fluctuations, ensuring that energy supply aligns with demand.
‘Energy saved is energy generated’ is a popular saying. This resonates well with energy storage. ESS plays a critical role in the energy ecosystem. Firstly, ESS plays a crucial role in stabilising the power grid by storing excess power generated from RE sources and releasing it during periods of low generation. This capability is essential for maintaining a balanced and reliable energy supply, particularly given the intermittent nature of solar and wind energy.
Secondly, depending on system design and demand, ESS can either be coupled with RE sources to store surplus power or directly connected to the grid for load regulation and bulk power supply. This flexibility allows for optimized energy distribution and ensures a continuous power supply.
Thirdly, the combination of RE with ESS offers a cleaner and more economical alternative to traditional thermal power plants. While the cost per unit of energy from thermal plants ranges from Rs 6 to 7, RE + Battery Energy Storage Systems (BESS) can deliver power at a more competitive rate of Rs 3 to 4 per unit. This cost advantage is a key driving force and coupled with India’s growing investment in ESS, the country needs to show commitment to reducing carbon emissions and transitioning towards sustainable energy sources.
Fourthly, large-scale renewable projects often produce more energy than needed during peak production periods. ESS can store this excess energy and release it during low production periods, thereby ensuring a consistent and dependable power supply. This capability is vital for integrating more renewables into the grid, reducing the risk of blackouts, and enhancing grid stability.
Finally, ESS facilitates energy arbitrage, enabling the purchase of electricity during low-demand periods and selling it when demand and prices are high. This practice not only maximises financial returns but also helps in peak shaving, which reduces the maximum power demand on the grid, thereby lowering energy costs and minimizing the need for additional infrastructure.
Achieving these ambitious RE and ESS targets will require a significant financial commitment. The NITI Aayog estimates that an investment between Rs 18.55 to 24.9 trillion is necessary to meet the 2029-30 RPO target. This includes the development of a five-hour BESS with a capacity of 41.13 GW and a Pumped Hydro Storage capacity of 18.6 GW. The total storage requirement is projected to be 59.73 GW, combining BESS and Pumped Hydro capacities.
One of the challenges facing India’s renewable energy transition is the lack of comprehensive policies related to grid ancillary services. This gap affects the stability and efficiency of the grid. BESS offers a promising solution to bridge this gap, providing essential services like voltage support, peak load management, and frequency regulation. These services are crucial for maintaining grid stability and integrating a higher proportion of renewable energy sources.
India’s journey towards a sustainable energy future hinges on its ability to develop and deploy advanced renewable energy and storage solutions. The integration of ESS with RE sources not only provides a reliable and cost-effective alternative to conventional energy generation but also enhances grid stability and supports the country’s climate goals. However, realizing this vision requires substantial investment and robust policy frameworks to address existing challenges and ensure a seamless transition. The path forward is clear and to meet the ambitious targets set forth, India must continue to innovate and invest in renewable energy technologies and storage solutions. By doing so, the country can secure a sustainable, resilient, and prosperous future for all its citizens, aligning with its vision of becoming a developed nation by 2047.
