Improving framework conditions for energy storage in India

Context

The Indian electricity system faces substantial challenges with increasing demand and a heavy reliance on coal. Despite achieving 99 per cent electrification in 2020, the Government of India plans to double the electricity generation capacity by 2030. As a result, political changes have reduced the construction of new coal-fired power plants, emphasising the importance of renewable energy sources. While solar and wind energy costs are affordable, they do not produce power all the time. Therefore, storage technologies are needed to provide a steady electricity supply. Additionally, the expanding grid infrastructure must align with renewable capacity additions to prevent congestion. Introducing storage systems at various levels, including decentralised solutions, becomes crucial. However, regulatory gaps hinder the implementation of these storage solutions despite government support for battery manufacturing.

Objective

The framework conditions for the introduction of viable energy storage system applications at the distribution level have been improved.

Approach

The project advances knowledge through collaborative efforts to support India's carbon-neutral initiatives. It engages various stakeholder groups, including ministries, electricity commissions, central and state authorities, distribution companies (DISCOMs), private companies, and public infrastructure entities. A consortium was founded under the project, consisting of the Fraunhofer Institute for Energy Economics and Energy System Technology (Fraunhofer IEE), the Indian Institute of Technology Bombay (IIT Bombay), The Energy and Resources Institute (TERI), and the World Resources Institute India (WRI India).

The main objectives of the project are:

• Improving conditions for an enhanced policy and regulatory framework for decentralised energy storage systems and providing evidence on use cases as well as viable business models through demonstration projects.
• Conducting project studies as well as building research and development networks to enhance the understanding of viable decentralised energy storage system applications in the Indian research community.
• Improving skills in energy storage planning, design, implementation, and operation of professionals.

Last update: July 2024