Energy Storage In India: Market Overview And The Road Ahead

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Solar Panel, wind turbines and Li-ion Battery Container With Blue Sky Background. Energy Storage System.

Battery storage systems are quickly becoming one of the most important technologies for effectively integrating large amounts of solar and wind renewables into power grids across the world. Electricity storage technologies have a wide range of uses in the power sector, ranging from e-mobility and behind-the-meter applications to utility-scale applications. The article reads out details about energy storage in India and its various angles. 

Energy Storage: The Concept

The transfer of electrical energy from a power network into a form that can be stored until it is converted back to electrical energy is known as energy storage. Although electricity demand fluctuates throughout the day, one of the distinguishing characteristics of the electric power sector is that the amount of electricity that can be generated is rather constant over short periods. A significant step towards electricity distribution would be the development of such a technology that could store electricity so that it can be used to meet future demands as and when required. Electricity storage devices can help reach this goal by managing the amount of power required to provide customers at periods when demand is highest, such as during peak load. Renewable energy, whose power production cannot be controlled by grid operators, can also benefit from these devices to make it smoother and dispatchable. Energy storage is predicted to play a larger role in the energy markets as prices fall, moving away from niche applications like grid balancing and toward broader applications like replacing traditional power sources for reliability, providing power-quality services, and assisting renewables integration.

Market Overview 

During the projected period of 2020-2025, the Indian battery energy storage systems market is expected to grow at a CAGR of around 10%. The Indian battery energy storage market is expected to be driven by factors such as meeting the country’s electricity demand during peak hours of the day when battery energy storage systems serve as a backup. The Indian battery energy storage market is expected to be driven by rising electricity demand due to growing population, industrialization, and urbanization. When compared to other countries like the United States, China and Europe, India’s energy storage sector lags way behind. Despite the high demand for energy storage, the lack of a policy framework has stifled the growth and development of the battery energy storage business in India.

These batteries can be used as a backup supply for a variety of sectors and plants in the event of an energy crisis. Increased electricity output from renewable sources like solar and wind also brings up new possibilities for these energy storage systems. These batteries can also store excess power created by solar and wind energy for later use, maximizing the efficiency of the energy generated. 

Future Outlook 

The global need for power system flexibility, particularly from batteries, will quadruple as variable renewables are deployed and electricity consumption patterns shift. Renewables will account for two-thirds of all new capacity added to global power generation capacity by 2040, according to stated policies, with solar PV being the main source of installed capacity around 2035. These trends are expected to lead to a large growth in the usage of battery storage, with India accounting for more than a third of total deployment by 2040. In India, combining solar PV with low-cost batteries offers an appealing way to deliver electricity and flexibility. Soon this combination would be competitive with new coal power plants, allowing for the deployment of bigger volumes of cost-effective solar PV. In this “Cheap Battery Case,” coal-fired power generation capacity might reach a plateau in the 2030s without jeopardizing system dependability or electricity affordability. Solar PV capacity in India alone might reach 800 GW by 2040. This would result in India’s power-related CO2 emissions beginning to drop shortly after 2030. 

Apart from this, with the correct and appropriate governmental support and policy framework, new additions and innovations in grid-balancing, peak shifting and frequency regulation capabilities can be developed and worked upon in the times to come. This will ensure significant penetration of renewable energy in the Indian energy market. With the rising penetration of renewable assets, energy storage is projected to play a critical role in regulating grid unpredictability. 

Conclusion 

Energy storage is thought to be the future of solar, and the sector will continue to grow as the Indian economy improves and the government measures to promote sustainable energy become more prevalent. The Indian government should focus on policy certainty in terms of customs, taxes, and other fiscal measures, issue more solar and battery storage tenders and incentivize local producers to establish an ecosystem for the in-house production of globally competitive products.  Hence, energy storage is the way to go for a long, healthy, renewable-powered future! 

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