Energy Storage Systems Advisory for Solar Projects in India

New Delhi, Feb 19 (PTI) The Central Electricity Authority (CEA) on Wednesday issued an advisory on co-locating energy storage systems with solar power projects, a move aimed at enhancing the cost efficiency and stability of the grid.

The advisory has been sent to principal secretaries/secretary (power/energy) of all states and UTs, CMS of central power generating stations, and heads of Renewable Energy Implementing Agencies (REIAs).

A copy of the advisory has also been marked to Secretary, Ministry of Power, Secretary of New and Renewable Energy and CERC.

India has set an ambitious target to reach 500 GW of power using non-fossil fuel sources by 2030. To achieve this goal, the capacity of variable renewable energy sources such as solar and wind needs to be enhanced significantly. This can pose significant challenges to grid stability, as these VRE sources are intermittent and variable in nature and may not be available during periods of high demand

In this context, the CEA said that energy storage systems (ESS) would be essential to ensure grid stability, reliability, and optimal energy utilization. ESS can help address the intermittency challenges of RE projects, by storing excess energy for use during low RE hours, thus ensuring a more reliable and stable grid.

It said that the installed capacity of ESS as on December 2024 is 4.86 GW, which includes 4.75 GW of PSP and 0.11 GW of BESS projects.

As per the National Electricity Plan published by the Central Electricity Authority, in order to integrate the 364 GW of solar and 121 GW of wind capacity by 2031-32, India would require 73.93 GW/411.4 GWh of storage capacity (26.69 GW/175.18 GWN from PSP and 47.24 GW/236.22 GWh from BESS).

"In order to achieve this target, all Renewable Energy Implementing Agencies (REIAs) and state utilities are advised to incorporate a minimum of 2-hour co-located Energy Storage Systems (ESS), equivalent to 10 per cent of the installed solar project capacity, in future solar tenders.

"This requirement will help mitigate intermittency issues and provide critical support during peak demand periods. A suitable compliance mechanism may also be explicitly mentioned in the bid document to ensure the availability of storage during non-solar hours," the advisory said.

Distribution licensees may also consider mandating 2-hour storages with rooftop solar plants as well. This will improve reliability of supply at the consumer end and distribution licensees will get relief from over-injection during solar hours.

The integration of storage systems with solar power projects would not only support grid stability but also provide long-term economic benefits, such as improving the evening time utilization of transmission lines constructed for evacuating solar power, thereby reducing transmission requirement and charges, improving energy security, and enhancing the over all efficiency of renewable energy systems.