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A Market Motion Report on Accelerating Battery Vitality Storage in India

India’s energy system is shifting to a brand new section as common electrical energy entry is achieved, financial progress continues to drive electrical energy demand, and over 125 gigawatts (GW) of renewable power assets have been deployed. Constructing out enough power storage shall be important for India’s grid to efficiently combine growing technology from renewable assets and to satisfy future load calls for. Attaining a dependable, resilient, and versatile grid would require a projected deployment of roughly 60 GW of power storage, 42 GW (208 GWh) of which shall be equipped by battery power storage system (BESS) capability by 2030.

The Authorities of India has taken a number of coverage steps laying the groundwork for an enabling atmosphere for power storage. These insurance policies have included defining power storage techniques, extending key renewable power generator advantages to power storage belongings, offering subsidies, supporting market improvement, and setting procurement targets. The Nationwide Framework for Selling Vitality Storage Programs, launched by the Ministry of Energy in August 2023, particulars these insurance policies and represents a step in direction of making a complete nationwide roadmap for accelerating storage improvement within the coming years. Establishing the total worth streams for BESS would require India’s energy system stakeholders to operationalize the nationwide framework — shifting from nationwide tips to accelerated adoption, planning, and integration of BESS initiatives throughout the ability system.

The Powering Progress: Batteries for Discoms report explores the market alternative for front-of-meter BESS inside India, with an emphasis on the ability distribution sector and distribution corporations (Discoms). Distribution-located storage (DLS) can contribute to the duties of Discoms by offering advantages by way of distribution system capability deferral on the substation stage, significantly in dense city areas experiencing peak load will increase the place there’s restricted house to develop the bodily footprint of the distribution system. DLS also can meet Discoms’ portfolio wants by offering useful resource adequacy worth and minimizing Deviation Settlement Mechanism penalties and voltage assist. BESS can meet grid balancing wants by taking part in wholesale markets akin to power arbitrage and ancillary companies.

At current, many of those worth streams aren’t absolutely monetizable. Whereas the long-term worth propositions may very well be favorable to a Discom investing in DLS (as in contrast with different options which will improve general system prices), the lack to precisely assess future income streams is inhibiting mission approval. Moreover, inadequate institutional data of the best way to assess BESS initiatives is slowing down state electrical energy regulatory commissions (SERCs) in approving DLS proposals. To make sure speedy deployment of battery storage to satisfy system wants as prices decline, it’s important that stakeholders, together with Discoms and regulators, are knowledgeable of BESS worth and have methods to successfully procure and make the most of storage applied sciences.

Exhibit 1: Present Financial Worth Hole and Levers to Scale back It for Illustrative 10 MW (20 MWh) BESS

As India shifts from enhancing electrical energy entry to enhancing high quality of electrical energy service and reliability, new regulatory frameworks and enterprise fashions must be developed and applied to assist these wants. Discoms have a singular alternative to play a task in integrating BESS into their portfolios. These actions are the following steps in enhancing the situations for deploying progressive know-how options that can assist India grow to be a world chief, efficiently combine renewables to satisfy rising demand, and supply a mannequin of power transition to the world.

DOWNLOAD THE REPORT | 2023

By Benny Bertagnini, Sonika Choudhary, Elizabeth Healy, Umang Maheshwari, Jagabanta Ningthoujam, Sakhi Shah, Clay Stranger

Initially printed on RMI.