New Delhi,dec 18
India is poised for a major boost in energy storage capacity, with projections indicating a 12-fold increase to around 60 GW by FY32, according to SBI report.
This will surpass the growth anticipated for renewable energy sources themselves. The country’s energy storage landscape is evolving rapidly, with the proportion of RE projects incorporating storage solutions increasing significantly, from 5 per cent in FY20 to 23 per cent in FY24.By FY32, the share of variable renewable energy (VRE) in power generation is expected to triple, raising concerns about the stability of the grid, The growth of VRE could destabilize the grid unless the power system undergoes a significant transformation, particularly with the integration of Energy Storage Systems (ESS), which are crucial in managing this transition. The challenge lies in the inherent mismatch between the generation of VRE and peak power demand. This mismatch often leads to grid instability, surplus energy during peak production hours, and continued reliance on fossil fuels during non-solar periods.
ESS provide a solution by storing excess renewable energy during high production times and releasing it when demand peaks, thus stabilizing the grid and mitigating issues like the “diurnal duck curve” (a gap in supply and demand during the day).
Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP) are expected to dominate the energy storage market, with BESS, in particular, emerging as the dominant technology due to its locational flexibility, rapid response time, and improvements in technology that are further reducing costs.By FY32, BESS capacity is expected to soar by 375 times to 42 GW, while PSP capacity will grow four-fold to 19 GW.While PSPs are facing challenges such as long development periods and the risk of stranded assets, their low operational costs and ability to generate reactive power make them an important tool for peak shaving and grid stability.
