The union ministry of new and renewable energy will soon mandate requirement for battery storage capacity for upcoming solar and wind power plants mentioned Prashant Kumar Singh, secretary of the ministry.
Initial Ten Percent Storage Mandate
Singh revealed that an initial mandate of 10% of the total renewable energy capacity for battery storage may be implemented.
This government mandate could gradually increase over time.
He emphasized the need for battery storage to address the intermittency of renewable energy sources like solar and wind. “Today, we are dealing with this issue of intermittency,” Singh explained.
Singh further mentioned, “Solar energy is available for only 7-8 hours, and wind is seasonal. However, experiments have proven that battery storage can enable round-the-clock power supply”.
Cost-Effective Renewable Energy Solutions
Singh also pointed out that the recent tenders for solar, wind, and battery storage projects have shown more favourable rates than coal-based non-pithead plants.
“The rates are now competitive with those of coal plants. With the falling cost of batteries, it makes sense to move forward with integrated renewable energy projects,” he added.
This shift signals a move away from traditional standalone solar or wind projects.
Addressing the Intermittency of Renewable Energy
The intermittent nature of renewable energy requires energy storage systems to ensure grid stability and continuous power supply.
Singh explained that battery energy storage systems (BESS) and pump storage projects (PSP) are essential for storing and releasing power consistently.
“With battery prices declining, we are considering starting with a small mandate for battery storage, perhaps 10% of the plant’s capacity. As battery prices continue to drop, this could rise to 30-40%,” he said.
Viability Gap Funding Scheme
In line with this, the government approved a ₹3,760 crore viability gap funding (VGF) scheme in September last year.
The government mandate aims to support the development of battery energy storage systems by providing up to 40% of the capital cost for BESS projects, totalling 4,000 megawatt-hours (MWh) by FY31. This initiative is crucial for India’s energy transition, as storage systems are essential to manage renewable energy fluctuations, such as during cloudy or windless periods.
Policy Focus on Renewable Energy Growth
The government is making efforts to support the renewable energy sector. These efforts align with its ambitious goal of achieving 500GW of installed non-fossil energy capacity by 2030.
In 2022, the power ministry introduced guidelines for the procurement and utilization of battery energy storage systems. This initiative is part of the broader energy infrastructure.
As reported by msn.com, the ministry set a 4% energy storage obligation for power distribution companies (discoms) by FY30. This is in alignment with the renewable purchase obligation.
