India’s Renewable Energy Transition: The
Role of Energy Storage

India stands at the precipice of an energy revolution,
setting an ambitious target to install 500 GW of renewable energy capacity by
2030, a significant leap from the current 179 GW. This bold goal underlines
India’s commitment to climate action and sustainability, aligning with its
pledge to meet 50% of installed capacity from non-fossil fuels and reduce emission
intensity by 45% by 2030 (compared to 2005 levels). However, integrating
renewable energy sources (RES) like solar and wind into the national grid
presents unique challenges due to their intermittent and variable nature. To
ensure grid stability and maintain a reliable power supply, Energy Storage
Systems (ESS) will be indispensable.

The Renewable Energy Challenge

Renewable energy sources are inherently variable,
depending on factors such as time of day, weather conditions, and geographic
location. For instance, solar energy is abundant during daylight hours but
unavailable at night, while wind energy output fluctuates based on wind speed.
Such unpredictability can destabilize the grid, leading to voltage
fluctuations, frequency instability, and even blackouts. As renewable energy’s
share in the energy mix grows, so does the complexity of balancing supply and
demand.

To address these challenges and ensure the grid’s
reliability, Energy Storage Systems are critical. By storing surplus energy
during periods of high production and disbursing it when demand outstrips
supply, ESS can bridge the gap, stabilize the grid, and enhance the efficiency
of renewable energy utilization. #Role of LDES in Sustainable Future And Net Zero

The Importance of Energy Storage Systems
(ESS)

 

Energy Storage Systems play a transformative role in
India’s renewable energy journey, offering multifaceted benefits that address
both technical and economic challenges. These include:

1. Mitigating Variability:

   ESS smooths
out the fluctuations in renewable energy generation, ensuring a consistent and
reliable power supply.

2. Peak Shifting:

   Energy
generated during low-demand periods can be stored and supplied during peak
demand hours, optimizing energy use.

3. Grid Stability:

   By providing
ancillary services such as voltage regulation and frequency response, ESS
enhances grid reliability.

4. Carbon Emissions Reduction:

   ESS
facilitates the integration of renewable energy, helping reduce reliance on
fossil fuels and lower greenhouse gas emissions.

5. Infrastructure Deferral:

   With
effective energy storage, investments in new transmission and distribution
infrastructure can be deferred or reduced.

6. Economic Benefits:

   ESS can
enable energy arbitrage—buying electricity when prices are low and selling it
during high-demand periods—thus improving economic efficiency.

Energy Storage Projections in India:

India’s commitment to renewable energy expansion
necessitates a parallel increase in energy storage capacity. The National
Electricity Plan (NEP) 2023 outlines the projected requirements:

– 2026-27: 82.37 GWh (comprising 47.65 GWh from Pumped
Storage Plants (PSP) and 34.72 GWh from Battery Energy Storage Systems (BESS)).

– 2031-32: 411.4 GWh (175.18 GWh from PSP and 236.22
GWh from BESS).

– 2047: 2380 GWh (540 GWh from PSP and 1840 GWh from
BESS), driven by India’s net-zero emissions target for 2070.

To ensure sufficient energy storage capacity, the
Ministry of Power has introduced a long-term Energy Storage Obligation (ESO)
trajectory. This requires obligated entities to gradually increase their
storage capacity from 1% in FY 2023-24 to 4% by FY 2029-30, with an annual
increment of 0.5%. Importantly, at least 85% of the energy stored must come
from renewable sources, emphasizing the commitment to clean energy. #Long Duration Energy Storage

Emerging Role of Long-Duration Energy
Storage (LDES)

Long-Duration Energy Storage (LDES) systems are poised
to revolutionize energy storage, providing solutions for storing energy over
extended periods—ranging from hours to weeks and even months. LDES can address
several challenges associated with renewable energy integration:

1. Flexibility:

   LDES offers
the flexibility to manage energy supply during curtailments and ramp rates,
ensuring a balanced energy flow.

2. Seasonal Storage:

   By storing
energy for longer durations, LDES can bridge seasonal variations in renewable
energy availability.

3. Ancillary Services:

   LDES
contributes to grid resilience by offering services such as load following,
inertia, and frequency stabilization.

 

LDES projects are already gaining traction in India,
with notable examples including:

– A 20 MW / 50 MWh thermal energy storage project in
Phyang, Leh.

– A 1 MW thermal storage project in Talheti,
Rajasthan.

Such projects demonstrate the potential of LDES to
enhance grid stability and accelerate renewable energy adoption.

Challenges in Scaling Energy Storage:

Despite its critical importance, scaling grid-scale
energy storage in India faces several challenges:

1. Policy and Regulatory Gaps:

   The absence
of comprehensive policies and clear regulatory frameworks to incentivize energy
storage solutions hinders large-scale adoption.

2. High Initial Costs:

   Energy
storage technologies, particularly LDES, require significant upfront
investments, which can be a deterrent for developers.

3. Market Mechanisms:

   Dynamic
pricing models and mechanisms for procuring ancillary services are still
underdeveloped, limiting market-driven adoption.

4. Infrastructure Limitations:

   The existing
transmission and distribution infrastructure needs to be upgraded to
accommodate energy storage systems effectively.

5. Investor Uncertainty: Unlike renewable energy
capacity targets, the lack of specific storage targets creates uncertainty for
investors and developers.

Policy Recommendations:

To achieve its renewable energy and storage goals,
India must adopt a comprehensive and proactive approach. Key recommendations
include:

1. Establish Specific LDES Targets:

   Setting clear
targets for LDES adoption, akin to renewable energy capacity goals, can provide
direction and confidence to stakeholders.

2. Promote Public-Private Partnerships (PPPs):

   Encouraging
collaboration between the government and private sector can drive innovation,
reduce costs, and accelerate deployment.

3. Incentivize Energy Storage:

   Subsidies,
tax benefits, and low-interest financing options for energy storage projects
can encourage investment and adoption.

4. Develop Market Mechanisms:

   Introducing
dynamic pricing models and mechanisms for ancillary service procurement can
make energy storage economically viable.

5. Enhance Policy Frameworks:

   Establishing
clear and consistent policies for energy storage integration will provide
long-term stability and predictability for investors.

India’s Renewable Energy Goals and Global
Leadership

India’s renewable energy ambitions place it among the
global leaders in sustainability. Achieving 500 GW of renewable energy capacity
by 2030 will require installing four times the renewable energy added between
2010 and 2020. Energy storage systems, particularly LDES, will be pivotal in
meeting this target by addressing the challenges of variability, grid
stability, and energy management.

Globally, countries are watching India’s renewable
energy journey as a model for balancing rapid economic growth with
environmental stewardship. By successfully integrating energy storage, India
can demonstrate the feasibility of a low-carbon, resilient energy system.

Conclusion

India’s renewable energy transition represents a bold
step toward a sustainable future. However, achieving this vision requires
overcoming significant challenges associated with integrating intermittent and
variable renewable energy sources. Energy Storage Systems (ESS) and
Long-Duration Energy Storage (LDES) are indispensable for addressing these
challenges, providing the flexibility, stability, and resilience necessary for
a renewable energy-dominated grid.

By adopting robust policies, incentivizing innovation,
and fostering public-private partnerships, India can unlock the full potential
of energy storage technologies. This will not only enable the country to
achieve its ambitious renewable energy targets but also position it as a global
leader in the fight against climate change. With the right investments and
strategic planning, India’s energy revolution can pave the way for a
sustainable and resilient future.