Energy Storage Technologies

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News: Defence Minister Rajnath Singh approved a 250 MW solar project with Battery Energy Storage System in Sitapur, Uttar Pradesh.

About Energy Storage Technologies

  • Energy storage technologies store excess renewable electricity and supply it later when demand rises and power generation remains low.
  • Status of Energy Storage Capacity:
    • Global Leader: China continues to dominate energy storage deployment, accounting for about 60% of new installations in 2025, followed by the United States at 16%.
    • Major Technologies: Globally, Pumped Hydro Storage (PHS) and Battery Energy Storage Systems (BESS) are the two most widely deployed electricity storage technologies.
    • India’s Current Capacity: India has approximately 7 GW of operational Pumped Storage Project (PSP) capacity and less than 1 GW of operational Battery Energy Storage System (BESS) capacity.
    • Future Target: India has planned a total energy storage capacity of 174 GW, including 80 GW of BESS and 94 GW of Pumped Hydro Storage (PHS), to support 509 GW of solar capacity and 155 GW of wind capacity by 2036.
  • Types of Energy Storage Technology:
    • Pumped Hydro Storage (PHS): This technology uses surplus electricity to pump water from a lower reservoir to a higher reservoir. When demand increases, the stored water is released through turbines to generate electricity.
    • Battery Energy Storage System (BESS): This technology stores electricity chemically and releases it when required. Lithium-ion batteries, especially Lithium Iron Phosphate (LFP) batteries, are widely used because of their high efficiency, lower costs, and long operational life.
    • Concentrating Solar-Thermal Storage: This technology uses mirrors to focus sunlight onto a receiver. The generated heat is stored using materials such as molten salt and later used to produce electricity.
    • Compressed-Air Energy Storage: This technology stores compressed air in underground caverns or tanks and releases it later to drive turbines for electricity generation.
    • Flywheel and Gravity Energy Storage: Flywheel systems store electricity as rotational energy, while gravity systems store energy by lifting heavy weights and generating electricity when the weights are lowered.
  • India’s Initiatives:
    • Advanced Chemistry Cell (ACC) PLI Scheme: This Rs.18,100 crore scheme aims to establish 50 GWh of domestic battery manufacturing capacity.
    • Viability Gap Funding (VGF) Scheme: This scheme provides financial support to improve the commercial viability of BESS projects.
    • Energy Storage Obligations (ESO): DISCOMs are required to source a specified share of electricity from storage-backed systems, reaching 4% by 2030.
    • Round-the-Clock (RTC) and FDRE Tenders: Renewable energy agencies are promoting contracts that require developers to integrate battery storage for reliable power supply.
    • ISTS Charges Waiver: The government has waived inter-state transmission system (ISTS) charges for electricity used by energy storage systems, making it cheaper to transport stored green energy across states.
    • Battery Storage Vision: Under the India Battery Storage Vision 2047, ministries are developing a policy framework to provide financial support and interest subventions for long-duration energy storage technologies.
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