Presentation: Energy storage is the key to unlocking the full potential of renewable energy - economic times

Presentation: Energy storage is the key to unlocking the full potential of renewable energy – economic times

India is increasing its reliance on renewable energy to support its net-zero ambitions, with the goal of meeting 50% of the country’s electricity demand through renewable sources by 2030. As variable and intermittent renewables take a larger share in the total energy mix, how can India ensure grid safety and reliability In the power supply? Energy storage, with grid balancing and renewable energy optimization services. It provides companies with the right opportunity to unlock India’s clean energy potential.

As the penetration of renewable energy increases, the operational dynamics of the power system will change dramatically, requiring a change in the system architecture as well. Energy storage will be an essential part of the architecture of the new energy system because it not only helps balance generation variance, but can also enable a higher proportion of self-generated renewable energy to be consumed by consumers and reduce the need to feed excess electricity back into the grid.

“At the grid level, energy storage is needed to efficiently manage the demand and supply dynamics. This includes managing short-term maximum power requirements and maintaining frequency when the grid is under stress,” says Dr. Ganesh Das, Head of Strategy, Collaboration, Innovation and R&D at Tata Power Delhi Distribution Limited.

While pumped water storage has traditionally been the most widely used storage technology globally, its environmental and geographic limitations are already paving the way for more prominent use of new technologies such as batteries and fuel cells.

Benefits for commercial and industrial consumers

Energy storage systems are already beginning to support companies in reducing their dependence on fossil fuels, such as diesel, and making better use of renewable energy in a commercially viable way. The commercial viability of deployment by commercial and industrial consumers depends on applicable use cases, location and type of process, and access to renewable energy, among other factors.

“We have recently commissioned a 1 megawatt-hour (MWh) battery energy storage system connected to a solar power plant in Karnataka, one of the first battery projects of this scale in the commercial and industrial sectors in India. The installed system provides battery storage as a backup for power during grid failure. As an alternative to a diesel generator, helping the contractor save about 1 liter of diesel annually, says Anil Bhatt, CEO of distributed generation at Amplus Solar, a member of the Petronas Group.

“For commercial and industrial consumers, an energy storage deployment is likely to make commercial sense if their daily diesel generating set usage is more than 20 minutes per day and the electricity tariff is more than INR 8 per kilowatt-hour (kWh). It will also be suitable for those with access They install surplus solar power and have operations in states like Karnataka, Uttar Pradesh and Tamil Nadu, where net metering is not allowed for commercial and industrial consumers,” according to Anil Bhatt.

Increasing restrictions being introduced in various states regarding services of surplus renewable energy on the grid for later use and withdrawal of net metering incentives (ie the ability to sell additional consumer-produced renewable energy to the facility) are acting as catalysts for further growth in the energy storage market.

Barriers to adoption by commercial and industrial consumers

In its report on “Optimal Generation Capabilities Mix”, the main advisory body to the Ministry of Energy of India, the Central Electricity Authority rightly acknowledged that energy storage systems will play a key supporting role in meeting India’s energy needs by 2030. While more than seven GWh ( GWh) from large-scale government tenders already floated for the installation of battery energy storage systems (stand-alone or as part of hybrid renewable energy projects), commercial and industrial consumers face a number of challenges in the adoption of energy storage.

“The Aditya Birla Group is committed to achieving net zero carbon emissions by 2050. Given our energy use profiles, renewable energy with storage plays a clear role in the decarbonization roadmap. While various projections regarding the cost of lithium-ion battery storage indicate a reduction of more than 60% % by 2030, current prices limit the application of battery storage as a commercially viable alternative. The challenge of recycling end-of-life batteries will also influence our decision to adopt,” says Deeksha Vats, Head of Sustainability at Aditya Birla Group.

The Godrej Group aims to be carbon neutral in its operations by 2030 and is committed to reducing its absolute emissions in line with a 1.5 degree scenario. Renewable energy and energy efficiency have been key pillars of our decarbonization strategy, with storage emerging as the third and perhaps the most important pillar of this batch. The single biggest challenge facing the widespread adoption of energy storage technologies is the economics of the solution. Other challenges include the choice of storage technology, its reliability, and its long-term maintenance costs.

Policy and organizational changes to network-wide installations

The deployment of grid-scale energy storage systems depends more on having an appropriate policy and regulatory framework, than on the case of deployment by commercial and industrial consumers.

Two types of policy and regulatory changes are needed to promote the deployment of energy storage in India. The first type is the rules necessary to ensure the reliability and safety of the grid based on renewable energy, which will automatically support the deployment of energy storage. These include higher tariffs throughout the day for commercial and industrial consumers and the development of an active market for additional services. Currently, peak tariffs in India are 15-20% higher than off-peak tariffs, while in other markets including the US, Australia and the UK, this difference can be as high as 200-400%. The market for additional services should also be opened further and rapid response services stimulated.

The second type is more geared towards the deployment of energy storage itself. The production-related incentive scheme launched in 2021 to manufacture advanced battery chemical cells was a brilliant initiative.

“The national energy storage target in line with the 2030 renewable energy target, which is further broken down into annual nationwide energy storage targets, is critical to enabling different stakeholders to optimize costs, develop innovative solutions and create demand. Furthermore, Specific exemptions including removing import tariffs so that high-quality cell supplies are locally available, levying open access fees, and in-state transportation and payment fees for consumers who use renewable energy to ship storage assets, would help accelerate deployment,” the growth ” The APAC for Fluence.

way forward

Among commercial and industrial consumers, there appears to be a lack of awareness about the suitability of energy storage systems for their operations, mostly due to the lack of tools to capture electricity consumption data at the required frequency and duration. For example, many large companies in India still lack data showing a 15-min electricity load profile, which is critical for the commercial assessment of the business case for energy storage deployment.

2020 is the decade of action, and technologies like energy storage will play a critical role in supporting us to win the race against the climate crisis. There is no time left for the wait and watch approach. While the government is paving the way for network deployment by working on an appropriate policy and regulatory framework, companies must act. This can be done first by ensuring access to and analysis of useful data such as 15-minute load pattern, solar generation profile, potential for solar increase and diesel usage on a daily basis for energy support, and then determining the appropriate. Business operations to deploy to reap the commercial benefits of energy storage adoption.

#Presentation #Energy #storage #key #unlocking #full #potential #renewable #energy #economic #times

Leave a Comment

Your email address will not be published.