IEEFA projects exponential growth of battery storage assets in India

CCMS Bureau

A new report has projected exponential growth in India’s Battery Energy Storage System (BESS). BESS — one of the key emerging technologies in the Indian renewable energy sector — can ensure both peak-time power supply and round-the-clock power to help overcome the intermittent nature of renewable energy.

As the grid demand is lower during the afternoon, grid-scale batteries would help store this excess solar and supply power to the grid during peak demand hours, which is currently being done by coal-fired power plants.

The study by Institute for Energy Economics and Financial Analysis (IEEFA), a United States-based think tank, released January 18, 2023, identified seven such upcoming projects in the country. Of these, three are standalone battery storage projects, which means that they can be used according to the requirements of distribution companies.

“The market for storage assets in India is going to grow exponentially going forward. There are several value streams attached to a single BESS asset. As the market for these assets develops, technology matures and financing improves, there will be ample investment opportunities,” the study said.

International Energy Agency’s India Energy Outlook 2021 also projected that India could potentially have 140-200 GW battery storage capacity, the largest for any country, by 2040.

On January 19, 2023, Solar Energy Corporation of India awarded JSW Energy, an energy company, two storage projects of 500 MW, with a 1,000 MWh output, which can provide power backup for two hours.

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