Major cooking projects for clean energy storage
India may phase out construction of stand-alone battery storage systems; allow their sale, lease or rental; and allowing the sale of stored energy through power purchase agreements (PPAs) and swaps, as part of its upcoming policy on energy storage systems (ESS).
A policy discussion paper also said the government could waive electricity transmission charges to sell and buy electricity from these storage facilities.
The policy aims to achieve large-scale integration of renewable energy into the power system, as large storage facilities can help maintain the stability of power grids since electricity is generated intermittently from clean energy sources such as as solar and wind energy. The idea is to store cheap green energy during off-peak hours in battery storage or hydro-pump storage, and release it for consumption when demand for electricity increases.
Mint saw a copy of the discussion document.
“The policy aims at the creation of a technology-independent storage system across the power sector value chain, namely at the generation, transmission and distribution levels,” a statement read. from the Department of Energy on January 27. The Union budget for FY23 proposed to include energy storage systems such as dense charging infrastructure and grid-scale battery systems in the harmonized list of infrastructures, in this sense, aligning with India’s climate commitments at the summit of the Conference of the Parties (COP-26) in Glasgow.
“Energy storage must be an integral part of the electrical system, as defined in Article 2(50) of the law” and “Any developer may set up an autonomous energy storage system (ESS). None no license is required for such a stand-alone ESS. However, such an ESS will be registered with the appropriate commission,” reads the working document. According to the Central Electricity Authority (CEA), the country needs 27 gigawatts (GW) of battery storage by 2030 with four hours of storage and 10 GW of hydro-pumped storage (PSP) plants.
In addition to battery storage, so-called off-river pumped storage plants are also part of the plan. Here, cheap green energy is used during off-peak hours to raise water to a height, which is then discharged into a lower reservoir to generate electricity. Such storage may not require the environmental clearances required for typical river hydroelectric projects, nor will there be an obligation to provide free electricity to the states involved.
“The global energy transition is essential to preserve the environment. All major economies have made commitments regarding their nationally determined contributions for the energy transition. India has committed to build 500 GW of non-fossil fuel capacity by 2030. This will require storage,” the document states.
Prime Minister Narendra Modi said last week that the Union budget will not only deliver green growth but also generate green jobs. The leitmotif of energy transition and climate action was inscribed throughout the budget, with “energy transition and climate action” being one of the priority areas before the government.
Questions emailed to an Energy Department spokesperson on Wednesday went unanswered until press time.
At CoP-26, India pledged to meet 50% of its energy needs from renewables by 2030 and to increase its power generation capacity from non-fossil fuels to 500 GW by the end of this decade. The commitment also includes reducing India’s carbon emissions by 1 billion tonnes by 2030 and achieving net zero carbon emissions by 2070. power sector value chain, viz. at the generation, transmission and distribution levels. When storage is implemented as part of a build, it should be counted as a build item; when set up as part of the transmission network, it should be counted as a transmission element, and when set up as part of the distribution, it should be counted as a distribution element” , proposed the working document.
“ESS Developers can set up a bulk storage facility and sell/lease/lease storage capacity to/from different entities, including load dispatch centers and obligated entities, in part or in full, and may use some of the capacity themselves for commercial purposes,” the proposed policy reads. .
About 96 GW has been identified as potential capacity for hydroelectric pump storage systems. Hydroelectric projects are increasingly sought after by clean energy companies. One of them is Hyderabad-based Greenko, which is building energy storage projects in six states as part of its plan to deliver power on demand.
“Energy storage systems will benefit generation companies, state distribution companies, grid operators and other players in the electricity value chain. They will facilitate peak shifting, peak shaving, ramp-up/downscaling and frequency control in the system and improve the utilization of the transmission system,” the Department of Energy statement said on May 27. January.
“ESS Developers will be permitted to buy/sell electricity under PPAs or through the Power Exchange,” the proposed policy states and adds: “Any sale of electricity from ESS or sale/ rental of storage space must be done either by open tender, or by exchange or by the fixed rate u/s 62.”
It comes at a time when India plans to set up a 14 gigawatt-hour grid-scale battery storage system at the world’s largest renewable energy park at Khavda in Gujarat.
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