World energy demand has grown dramatically over the past few decades. If current policies and technological trends continue, energy consumption will rise by at least 50 per cent by 2050. It would also boost energy-related CO2 emissions. In fact, it has led to an almost 5 per cent increase in carbon emissions in 2021, a surge of 1.5 billion tonnes from the year before.
Amid this mayhem, renewable energy resources serve as an excellent alternative to conventional energy sources. However, to achieve their full potential, we first need to overcome the fluctuations in their demand and supply. Since the sun is considered the most abundant renewable energy resource, solar energy storage solutions based on battery technologies are gaining popularity.
Notably, India alone receives as much as 5,000 trillion kWh per year of energy. And if we can achieve solar power to its full potential, a report by EMBER suggests that we can perhaps maintain the International Energy Agency’s (IEA) 1.5 °C global temperature pathway.
India’s Energy Storage Revolution
India recently launched multiple tenders around energy storage solutions. After all, solar batteries and storage technologies in general are critical to helping India reach its 500 GW of non-fossil fuel energy targets, including 450 GW of new wind and solar capacity by 2030.
India has already reached 150 GW of renewable energy capacity as of July 2022. It is on its way to meeting its 2030 goal. However, it will need at least 27 GW or 108 GWh of grid-scale battery storage and about 10.1 GW of pumped hydro energy storage (PHES) to ensure supply and power quality stability, says India’s Central Electricity Authority.
The Indian administration is currently running two tenders: one from the Solar Energy Corporation of India (SECI) and another from NTPC, a state-owned power group. The NTPC and SECI solicitations are the first in India’s standalone energy storage systems (ESS). And experts predict that it could catalyze the development of an entire ESS market in India.
In fact, India has the potential to become one of the top three markets globally for energy storage in the next decade.
The Hybrid Solar-Storage Movement in India
India already has its first fully solar powered town in Modhera, Gujarat. It demonstrates that battery storage can allow 24/7 clean energy and rural access to electricity. Modhera, with about 1,400 inhabitants, was selected as an ideal location for the pilot project by the national Ministry of New and Renewable Energy (MNRE).
MNRE had issued a tender in March 2020 for the project under the “Scheme for Solarisation” of Modhera. It sought to set up a pilot demonstration project for a rural town running completely on solar energy, including all of its domestic and agricultural needs. This project features a 6 MW solar plant with 15 MWh of battery storage.
A similar battery energy storage system (BESS) is also currently under construction in the Leh district of the Indian union territory of Ladakh. It will have a capacity of about 60.56 MWh. This system is co-located with a 50 MW solar plant in Phyang village, at an altitude of 3,400 meters above sea level.
Renewable Energy Storage: A Lucrative Opportunity for India
Over the past decade, the cost of battery storage has declined dramatically. The rising battery storage demand in India, coupled with an increased focus on sustainability. It means there will be significant opportunities in this space.
Likewise, NITI Aayog has suggested that India’s battery storage market will expand by over 1000 GWh by 2030, garnering a 250 billion USD valuation.
However, it is essential that the Indian battery storage projects overcome certain challenges to reach their full potential.
The effective use of solar energy storage includes all levels of the power ecosystem, including distribution and transmission, to ensure maximum utilization. Officials can also focus on creating comprehensive policies and participatory markets. Batteries are currently taxed heavily. The government may consider putting energy storage systems in a lower tax bracket of about 5 per cent.
The increasing limitations introduced by multiple states on the banking of surplus renewable power and the withdrawal of net metering incentives are acting as catalysts for the energy storage market’s growth. Increased emphasis on battery recycling along with standardization of their design and composition would further boost the market.
In short, with the right policies and standards in place, India is well-positioned to reap the benefits of solar-storage hybrid technologies.
Source: businessworld.in
