| Context: Battery Energy Storage Systems (BESS) are electrochemical devices that store electrical energy in chemical form and release it when required. They play a vital role in enhancing grid stability, facilitating peak load management, and enabling large-scale integration of intermittent renewable energy sources such as solar and wind. |
Significance of BESS in India’s Clean Energy Transition:
India is targeting 500 GW of non-fossil fuel capacity by 2030 and has pledged net-zero emissions by 2070. BESS forms the backbone of this transition in the following ways:
1. Renewable Energy Integration
- Challenge: Renewable energy sources like solar and wind are variable and intermittent.
- Role of BESS: Stores excess energy during high generation periods and discharges during low or peak demand periods.
- Example: SECI commissioned India’s largest solar-powered BESS, enhancing round-the-clock renewable power delivery.
2. Grid Stability and Reliability
- BESS provides ancillary services such as frequency regulation, voltage support, and spinning reserves.
- It acts as a buffer to absorb generation-demand mismatches.
3. Peak Load Management
- BESS enables energy shifting, supplying stored energy during peak demand and reducing peak tariffs and grid stress.
4. Energy Security
- Reduces dependency on imported fossil fuels, especially when India’s oil import dependency stood at 88.1% in 2024.
- Enhances self-sufficiency by storing domestically produced renewable energy.
5. Support for Electric Vehicles (EVs)
- BESS enables battery swapping infrastructure and fast-charging stations, aiding EV adoption.
6. Emission Reduction
- By enabling deeper penetration of renewables, BESS significantly reduces greenhouse gas emissions, aligning with India’s commitment to reduce the emission intensity of GDP by 45% by 2030 (base year 2005).
Challenges Facing BESS Deployment in India:
1. High Capital Cost
- Large-scale BESS deployment remains capital-intensive.
- Example: India relies heavily on imported lithium, cobalt, and nickel, raising costs.
2. Battery Lifespan and Degradation
- Batteries degrade over time, reducing efficiency and increasing operational costs.
3. Supply Chain Constraints
- India lacks domestic sources for critical minerals.
- Heavy reliance on imports from a few countries, like China, raises strategic vulnerabilities.
4. Infrastructure and Technical Gaps
- Limited deployment of grid-scale storage infrastructure.
- Inadequate integration with smart grids and renewable energy zones.
5. Environmental Concerns
- Improper disposal and recycling of batteries cause soil and water pollution.
- Recycling technologies and regulations are still underdeveloped.
6. Regulatory Uncertainty
- Inconsistent policies and lack of long-term investment frameworks discourage private players.
7. Safety Risks
- Lithium-ion batteries pose risks of thermal runaway and fire hazards if not managed properly.
Government Initiatives Supporting BESS:
- National Energy Storage Mission (NESM): Promotes domestic manufacturing and large-scale deployment.
- PLI Scheme for Advanced Chemistry Cells (₹18,100 crore): Aims to reduce import dependency.
- Viability Gap Funding (₹3,760 crore): For 4,000 MWh of BESS projects.
- Energy Storage Obligation (ESO) & Time-of-Day Tariffs: Encourage storage-backed renewables.
- Pumped Hydro Storage & RTC Power Policy: Supports long-duration storage integration.
- Make in India & FAME Schemes: Promote battery manufacturing and EV charging infrastructure.
Way Forward
- Scale Domestic Manufacturing: Establish lithium-ion gigafactories and support alternative chemistries like sodium-ion and solid-state batteries.
- Secure Supply Chains: Encourage domestic mining in states like Rajasthan and Karnataka, and enter strategic mineral partnerships abroad.
- R&D and Cost Reduction: Promote public-private research into high-efficiency and eco-friendly storage technologies.
- Battery Recycling Ecosystem: Implement strict recycling norms and incentivize second-life applications.
- Expand Storage Infrastructure: Set up battery parks in renewable energy zones and integrate BESS into smart grid projects.
- Strengthen Policy & Financial Support: Extend VGF schemes, streamline approvals, and offer tax incentives.
Conclusion: Battery Energy Storage Systems (BESS) are indispensable for India’s transition to a sustainable, resilient, and low-carbon energy future. Strategic investments, robust policy frameworks, and innovation will be critical to making India a global leader in clean energy and energy storage.
+1 Value addition:
- Energy Storage Systems (ESS) can be used for storing available energy from Renewable Energy and further can be used during peak hours of the day.
- BESS can include various types of battery technologies, with lithium-ion batteries currently being the most prevalent due to their high energy density, efficiency, and decreasing cost.
- India’s cumulative installed Battery Energy Storage System (BESS) capacity is 219.1 Megawatt-hours (MWh).
- Solar photovoltaic (PV) systems, combined with BESS, accounted for 90.6% of total installed capacity.
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