Context:
India’s energy storage requirement is projected to rise to 888 GWh by 2035-36, driven by rising power demand, renewable energy integration, electric vehicles, data centres and AI. Experts stress that storage must become a core part of India’s electricity system, not merely an add-on to solar and wind projects.
Explanation:
- India’s power demand is rising rapidly and peak demand may touch 300 GW next year, requiring reliable supply even when solar and wind generation fluctuate.
- Energy Storage Systems (ESS) store electricity when generation is high and release it when demand rises, especially during evening peak hours after solar generation falls.
- India’s projected storage need of 888 GWh by 2035-36 includes Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP).
- BESS uses batteries, especially lithium-ion batteries, to store electricity, while PSP stores energy by pumping water uphill and releasing it through turbines.
- Storage supports grid stability, renewable energy integration, ancillary services, and reduces dependence on coal during peak demand.
- Key challenges include high financing costs, lack of operational data, battery degradation, safety risks, uncertain revenues and weak tender design.
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