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Source: The post on renewable energy storage has been created on the article “Storage: New challenge for renewables” published in “Business Standard” on 28th December 2023.
UPSC Syllabus Topic: GS paper 3- Indian Economy- infrastructure (Energy)
News: The article discusses India’s plans to increase renewable energy use by investing in energy storage technologies like batteries and pumped storage. It mentions government incentives, future goals for storage capacity, and the importance of new technologies and policies to support this growth.
What is the current status of renewable energy storage?
Renewables Growth: 83% of the world’s power capacity added in 2022 was renewable, primarily wind and solar.
Energy Storage Expansion: Energy storage is growing at 23% annually, crucial for managing renewable variability.
India’s Position: India, with a significant renewable capacity, is projected to be the third largest by 2030 but fifth in energy storage installations.
Future Goals: India targets 500 GW renewable capacity by 2030. By 2047, the Central Electricity Authority estimates a need for 320 GW of energy storage, including 90 GW of PSP (pumped storage projects) and 230 GW of BESS (Battery Energy Storage Systems) to meet rising renewable energy use and 2070 net zero targets.
Storage Needs: A requirement of 60 GW of energy storage by 2030 is projected, with current visibility around 30 GW.
For more information on PSP read here
For more information on BESS read here
What are the challenges of renewable energy storage?
High Capital Costs: Initial investments for technologies like BESS are high, with costs anticipated to be ₹2.20-2.40 crore per MWh in 2023-26.
Material Availability: Lithium, crucial for batteries, poses supply and volatility challenges; alternatives like sodium are being explored.
Infrastructure Needs: Implementing large-scale storage requires infrastructure upgrades and policy support. Some storage technologies, especially newer ones like green hydrogen, are in early development stages.
What are the solutions for renewable energy storage?
Exploring Alternatives: Consideration of sodium-ion batteries as a potential alternative to lithium-ion, given sodium’s abundance.
Integrated Tenders: Promoting integrated solutions combining solar, wind, and storage to optimize costs and efficiency, as seen in tariffs ranging from ₹3-7/kWh.
What initiatives have been taken by the Indian government?
- Ministry of Power:
- Announced the National Framework for Promoting Energy Storage Systems, detailing procedures and incentives for different sub-sectors of ESS. This includes-Generation, Transmission, Distribution, Standalone ESS Operating Independently as Merchant Units, and Storage for Ancillary and Balancing Services.
- Approved a ₹3,760 crore viability gap fund for Battery Energy Storage Systems (BESS).
- Ministry of Environment:
- At COP28, emphasized the need for viable storage and abatement technologies before committing to phasing out fossil fuels.
- Ministry of New and Renewable Energy:
- Set a target of 500 GW renewable energy capacity by 2030.
- Launched a ₹18,000 crore Production-Linked Incentive (PLI) scheme for advanced cell chemistry battery manufacturing to boost domestic and foreign investment.
- Lithium Reserves Discovery: Identified significant lithium reserves in Jammu & Kashmir and Rajasthan to support battery manufacturing.
Way forward
India should continue to expand its renewable capacity, invest in diverse storage technologies, and implement supportive policies. Leveraging the ₹18,000 crore PLI scheme and enhancing infrastructure for BESS and PSP are crucial. Addressing regulatory challenges and tapping into newly discovered lithium reserves will also be vital to sustainably meet the 2030 and 2047 energy goals.
Question for practice:
Evaluate the effectiveness of India’s policies and initiatives in enhancing its renewable energy storage capacity.
