Energy Storage Pro June-July Issue 2021

Empowering, Insightful, Engaging

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ENERGY STORAGE IN INDIA MARKET OVERVIEW AND THE ROAD AHEAD

P E R S P E C T I V E

What is The Role Of Energy Storage In Deep Decarbonisation?

Future Roadmap: How is India poised to become an energy storage hub?

What Are Some Emerging Energy Storage Technologies In India?

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CONTENT NEWS

04 IN CONVERSATION

14 SUHAS SUTAR Head Energy Storage, Mahindra Susten

PESPECTIVE

20 What is The Role Of Energy Storage In Deep Decarbonisation?

INSIGHTS

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PUBLISHING

EDITING

Future Roadmap: How is India poised to become an energy storage hub?

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ENERGY STORAGE IN INDIA: MARKET OVERVIEW AND THE ROAD AHEAD

32

What Are Some Emerging Energy Storage Technologies In India?

Emission Economics Of Renewable Plus Storage VS Coal

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EMOBILITY + | JAN FEB ISSUE 2020

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PG 37

NEWS NEOVOLTA INCREASES BATTERY LIFE FROM 10.95 YEARS TO 16.5 YEARS

STANWELL TO BUILD BATTERY ENERGY STORAGE SYSTEM IN AUSTRALIA

NeoVolta Inc., manufacturer of Smart Energy Storage Solutions, has announced a significantly longer cycle life for its solar batteries. NeoVolta’s advanced NV14 energy storage system will feature a 6,000-cycle lithium iron phosphate battery. This represents a 50% longer life than the original 4,000-cycle product. A battery cycle is defined as one charge and discharge. With most home storage batteries cycled on a daily basis, 4,000 cycles equates to a life of 10.95 years. The 6,000 cycles from NeoVolta translates to 16.5 years of useful life, based on a full charge and discharge. If the homeowner discharges less battery, the lifetime is generally longer.

NeoVolta’s NV24 add-on battery, which can be used to expand the NV14’s high storage capacity, has also been upgraded to 6,000 cycles.

Stanwell is progressing detailed plans for a large-scale standalone battery at Tarong Power Station. The proposed 150 megawatt (MW) battery energy storage system (BESS) will help support energy system security and reliability. Stanwell acting CEO Adam Aspinall said large-scale energy storage would play an important role in Queensland’s future as higher levels of renewable energy entered the system. “According to the Australian Energy Market

WÄRTSILÄ FINALISES COMMISSIONING OF ITS FIRST TWO ENERGY STORAGE PROJECTS IN THE PHILIPPINES The technology group Wärtsilä has signed multiple energy storage contracts with SMC Global Power Holdings Inc. through its subsidiary, Universal Power Solutions Inc., in the Philippines during 2019-2020. The first two projects, Integrated Renewable Power HubToledo and BCCPP, Limay, Bataan, have achieved final commissioning in May. The projects have a capacity of 20 MW / 20 MWh and 40 MW / 40MWh respectively, and are part of the earlier announced energy storage orders. These are the first energy storage systems supplied by Wärtsilä to the Philippines. The projects are delivered on an engineering, procurement and construction (EPC) basis, and include Wärtsilä’s proprietary software and hardware solutions. The systems comprise the company’s GridSolv Max system, a standardised energy storage solution that provides flexible and modular storage for the core hardware assets of the systems, including the batteries, a safety and fire system, and inverters, alongside the advanced GEMS Digital Energy Platform.

Operator’s 2020 Final Integrated System Plan, over 3,600 MW of new large-scale energy storage will be required in Queensland over the next 20 years. Energy storage will be critical as it helps facilitate the integration of renewable energy into the energy system by storing electricity generated by wind and solar and supplying it to the market when required.” Mr Aspinall said.

JUNE- JULY ISSUE 2021 | PG 04

SCATEC TO DEVELOP 540 MW SOLAR PLANT WITH STORAGE IN SOUTH AFRICA Scatec has been awarded Preferred Bidder status on three projects totaling 150MW (3x50MW) of Contracted Capacity, by the Department of Mineral Resources and Energy in South Africa under the technology agnostic Risk Mitigation Power Procurement Programme (RMIPPP). The tariffs awarded to the projects fall within the range of the previously awarded preferred bidders.

The three projects (Kenhardt 1-3), in total consisting of 540 MW solar and 225 MW/1,140 MWh battery storage, were bid based on sites located in the sundrenched Northern Cape Province of South Africa. The projects awarded to Scatec are the only projects with preferred bidders status exclusivity making use of renewable energy technology, making it arguably one of the largest single site solar + storage hybrids in the world. The solar and storage solution will

provide dispatchable power from 5:00 am in the morning to 21:30 at night and will deliver much needed power to the South African economy. The power will be sold under a 20-year Power Purchase Agreement with a paid capacity charge. Financing has already been sourced as part of the bidding process. Project capex is estimated to be USD 1 billion and will be funded by project finance debt from a consortium of commercial banks and Development Finance Institutions with expected debt leverage of 80%. Scatec will own 51 % of the equity in the project with H1 Holdings, our local Black Economic Empowerment partner owning 49%. Scatec will be the Engineering, Procurement and Construction (EPC) provider and provide Operation & Maintenance as well as Asset Management services to the power plants.

Financial close is expected later in 2021 with grid connection by the end of 2022.

US ENERGY STORAGE MARKET SETS Q1 RECORD FOR DEPLOYMENTS According to Wood Mackenzie and the U.S. Energy Storage Association’s (ESA) latest ‘US Energy Storage Monitor’ report, 910 megawatt-hours (MWh) of new energy storage systems were brought online in Q1 2021. This is an increase of 252% over Q1 of last year, making it the biggest Q1 so far for the US storage market. After a record-setting quarter for deployments in Q4 of 2020, the pace of storage deployments slowed in Q1 2021 in what has come to be somewhat of an annual phenomenon for the industry. However, despite the dip this quarter, the US storage market still notched its third highest megawatt (MW) total for one quarter.

Looking ahead to the rest of 2021, deployments are expected to accelerate dramatically.

Wood Mackenzie forecasts that nearly 12,000 MWh of new storage will be added in 2021, which is three times the amount of new storage added in 2020. One of the most significant storage market developments in Q1 was the introduction of a stand-alone storage investment tax credit (ITC) in Congress. If passed this year, a standalone storage ITC would result in a 20-25% upgrade to Wood Mackenzie’s five-year market outlook in megawatt (MW) terms.

RENEW POWER ANNOUNCES NEW AFFILIATE RELATIONSHIP WITH THE PRECOURT ENERGY INSTITUTE’S ‘STORAGEX INITIATIVE’ FOR NEW ENERGY STORAGE SYSTEM TECHNOLOGY DEVELOPMENT ReNew Power, India’s leading renewable energy company, announced a collaboration agreement with the Precourt Institute for Energy at Stanford University and its StorageX Initiative (“StorageX”). StorageX is an academicindustry-government initiative that aims to solve the most pressing real-world challenges in battery storage. ReNew’s collaboration with StorageX will focus initially on challenges surrounding grid level battery usage and performance in India, with an eye toward optimizing the performance of storage assets, and ultimately driving stable and firm power delivery to the grid. Grid scale battery storage has emerged as a crucial enabler for solidifying India’s longterm plans for firm, reliable electricity from grid-integrated renewable sources. The ability to deliver reliable power from renewable sources at peak and off-peak hours is critical to power distribution companies’ plans to meet obligations for purchasing renewable power. Recognizing this increasing importance, in January 2020, ReNew bid on and won India’s first auction for renewable power generation combined with energy storage for guaranteed peak power supply capability. The 300 MW project was awarded by the Solar Energy Corporation of India.

JUNE- JULY ISSUE 2021 | PG 05

AGILITAS ENERGY TO BEGIN CONSTRUCTION OF LARGEST BATTERY ENERGY STORAGE SYSTEM IN RHODE ISLAND A g i l i t a s E n e r g y i s s t a r t i n g p r e - c o n s t r u c t i o n w o r k o n i t s l a t e s t b a t t e r y e n e r g y s t o r a g e p ro j e c t , a 3 M W / 9 M W h l it h iu m - io n s y s t e m i n P a s c o a g , R h o d e I s l a n d . T h e p r o j e c t w i l l p r o v i d e p e a k s h a v i n g s e r v i c e s t o t h e P a s c o a g U t il it y D is t ric t a n d a n c i l l a r y s e r v i c e s t o I S O - N e w E n g l a n d . “ T h e b a t t e r y s t o r a g e s y s t e m w i l l a l l o w u s t o m o d e rn iz e o u r in f ra s t ru c t u re a n d a v o id t h e m o r e c o s t l y r e - c o n s t r u c t i o n o f e x i s t i n g t r a n s m i s s i o n l i n e s . T h e b a t t e r y e n e r g y s t o ra g e s y s t e m s h e l p f u l f il l o u r g o a l t o c o n t r o l c o s t s w h i l e w e a s s u r e r e l i a b l e p o w e r , ” s a i d M i k e K i r k w o o d , G e n e r a l M a n a g e r o f t h e D is t ric t . T h is is t h e f irs t B a t t e ry E n e r g y S t o r a g e S y s t e m t o b e c o n s t r u c t e d b y A g i l i t a s E n e r g y i n R h o d e I s l a n d a n d it is p l a n n e d t o e n t e r c o m m e rc ia l o p e r a t i o n b y Q 2 2 0 2 2 . A g i l i t a s E n e r g y h a s b e e n a n e a r l y l e a d e r i n t h e e n e r g y s t o ra g e m a rk e t t h ro u g h a c q u is it io n , o r i g i n a t i o n a n d s t r a t e g i c a l l y p a i r i n g s o l a r w i t h e n e r g y s t o r a g e s y s t e m s . L e v e r a g i n g it s u n iq u e a d v a n t a g e o f a n e x p e rt in h o u s e c o n s t r u c t i o n t e a m , t h e C o m p a n y i s n o w c o n s t r u c t i n g o v e r 4 0 M W o f s o l a r a n d o v e r 7 0 M W h o f e n e rg y s t o ra g e projects in Massachusetts and New York.

WORLD BANK GROUP PROVIDES $465 MILLION TO EXPAND RENEWABLE ENERGY & BATTERY STORAGE INTEGRATION IN WEST AFRICA

DHYBRID INSTALLS SOLAR+STORAGE ON 26 MALDIVIAN ISLANDS Microgrid experts at DHYBRID have installed microgrids on a total of 26 islands on the Shaviyani and Noonu Atolls of the Maldives and equipped them with a central monitoring and control system (SCADA). The project sponsored by the Maldivian Ministry of Environment and the Climate Investment Funds aims to substantially decrease carbon

emissions as well as the costs of energy generation on these remote islands. The solar energy capacity installed is about 2.65 megawatts, and the capacity of the battery storage systems used is around 3.2 megawatt hours.

The solar addition to the existing microgrids on both atolls is part of the Preparing Outer Islands for Sustainable Energy Development project, or POISED, which aims to make the energy supply of the outer atolls and islands as well as the region surrounding the main island of Malé sustainable.

HIGHVIEW ENLASA BUILDING 50MW/500MWH LIQUID AIR ENERGY STORAGE FACILITY IN CHILE H i g h v i e w E n l a s a , t h e 5 0 / 5 0 j o i n t v e n t u r e be t w e e n H i g h v i e w P o w e r , a g l o b a l leader in long duration energy storage solutions, and Energía Latina S.A.Enlasa, the largest backup power generation provider in Chile, is pleased to announce that it is developing the first liquid air long duration energy storage project in Chile. This 50MW/500MWh (10 hours) CRYOBattery™, which represents an estimated investment of USD $150 million, will be located in Diego de Almagro in the Atacama Region. With one of the highest solar irradiations in the world, the Atacama Region has the potential to generate all the country’s electricity. By pairing solar with cryogenic energy storage, Chile can benefit from 24/7, 100% renewable energy. Engineering, procurement, and construction (EPC) on the project will be carried out by SK Ingeniería y Construcción, a leading Chilean EPC and a subsidiary of the Sigdo Koppers group. The project is currently in the pre-feasibility engineering phase and is scheduled to enter environmental processing in August of this year. Construction is estimated to start in the second half of 2023.

Countries in the Economic Community of West African States (ECOWAS) will expand access to grid electricity to over 1 million people, enhance power system stability for another 3.5 million people, and increase renewable energy integration in the West Africa Power Pool (WAPP). The new Regional Electricity Access and Battery-Energy Storage Technologies (BEST) Project – approved by the World Bank Group today for a total amount of $465 million— will increase grid connections in fragile areas of the Sahel, build the capacity of the ECOWAS Regional Electricity Regulatory Authority (ERERA), and strengthen the WAPP’s network operation with battery-energy storage technologies infrastructure. This is a pioneering move that makes way for increased renewable energy generation, transmission, and investment across the region.

Over the past decade, the World Bank has financed close to $2.3 billion of investments in infrastructure and reforms in support of WAPP, considered the key to achieving universal access to electricity by 2030 in the 15 ECOWAS countries. This new project builds on progress and will finance civil works to accelerate access in Mauritania, Niger, and Senegal.

JUNE- JULY ISSUE 2021 | PG 06

CUAMBA SOLAR PV + ENERGY STORAGE PROJECT CONSTRUCTION BEGINS IN MOZAMBIQUE

MALDIVES INVITES BIDDERS TO INSTALL 40 MW OF BATTERY ENERGY STORAGE SYSTEMS The government of the Republic of Maldives launched a tender process to prequalify bidders on projects involving the supply and installation of battery energy storage systems (BESS) totalling 40 MW/40 MWh of capacity. The capacity is divided in two lots-one of 24 MW/24 MWh and another one of 16 MW/16 MWh — and will be distributed between 22 island grids, the government said.

The projects are to be delivered on an EPC basis. The Maldivian government was supported with a USD-23-million (EUR 19m) concessional loan from the Clean Technology Fund to cover for the installations under the BESS tender.

The initiative is additionally backed by the World Bank through its Accelerating Renewable Energy Integration and Sustainable Energy (ARISE) project.

In a significant step toward a clean energy future, Globeleq, a leading independent power company in Africa and its project partners, Source Energia and Electricidade de Moçambique (EDM) have celebrated the start of construction of the 19MWp (15MWac) Cuamba Solar PV plant and a 2 MW (7MWh) energy storage system. The project will contribute to the Government’s “Energy for All” strategy, aiming to have universal energy access by 2030. The US$32 million project is located in the Tetereane District of the city of Cuamba, Niassa province, about 550 kms west of the coastal town Nacala. The project is the first IPP in Mozambique to integrate a utility scale energy storage system and includes an upgrade to the existing Cuamba substation. Electricity will be sold through a 25-year power purchase agreement with EDM. The project is expected to receive US$19m of debt funding from The Emerging Africa Infrastructure Fund (“EAIF”), a member of the Private Infrastructure Development Group (“PIDG”). Furthermore, the project will receive US$7m in grant funding from PIDG’s Viability Gap Funding (“VGF”) grant facility and a US$ 1m grant from CDC Plus to enable an affordable tariff and the energy storage system.

FRV TO EXECUTE ITS FIRST HYBRID SOLAR-STORAGE PROJECT IN AUSTRALIA Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy and a global leading provider of sustainable energy solutions will develop its first 5 MWac Solar-Storage Hybrid Power Plant in Australia. Located in the Dalby region of Queensland, the Battery Energy Storage System (BESS) facility will feature 2.4 MWac of solar photovoltaic (PV) generation panels and a 2.5 MWac/5 MWh energy storage system which, once completed, will be one of the first co-located PV and BESS system greenfield developments in Australia. The plant’s output will be connected to Ergon’s distribution network, allowing the hybrid power plant to supply and take electricity from the grid and trade in the National Electricity Market.

The plant’s technical solution is designed to be operated as a predictable and dispatchable generation plant, to provide a reliable energy output.

The system will have the ability to access the maximum number of markets and revenue streams, including arbitrage and FCAS services.

JUNE- JULY ISSUE 2021 | PG 07

HITACHI ABB POWER GRIDS TO SUPPLY BATTERY ENERGY STORAGE SYSTEMS FOR TVO IN FINLAND Hitachi ABB Power Grids has been awarded a contract to provide Teollisuuden Voima (TVO) with one of Europe’s largest battery energy storage systems (BESS) to the island of Olkiluoto. The 90-megawatt system will support the entire energy network, in a potential production disturbance in the Olkiluoto 3 plant unit, thus minimizing the effect of power fluctuations on the grid. The turnkey solution acts as a fast-start backup power source. TVO is building a third nuclear power plant unit on the island of Olkiluoto.

Once commissioned about 30 percent of Finland's electricity is expected to come from the island and support the transition of Finland’s electricity production towards carbon neutrality. The battery energy storage system will be commissioned in 2022. Hitachi ABB Power Grids has delivered more than 600 MW of battery energy storage systems and the intelligent automation solutions supporting them worldwide. The company has more than 30 years of experience in delivering similar solutions to industrial and commercial sites, to utilities for the efficient management of decentralized renewable production, and to islands and remote regions that invest in energy selfsufficiency. The agreement with TVO includes an e-mesh™ PowerStore™ energy storage solution as well as an intelligent digital e-mesh™ SCADA energy management system, substation expansion and maintenance support.

RECURRENT ENERGY AMPS UP BATTERY STORAGE ACTIVITY EXECUTING ON 2.3 GWH OF STORAGE PROJECTS Recurrent Energy, LLC announced it has expanded its energy storage footprint in the United States with several leading Battery Energy Storage Systems (“BESS”) contracted to be built in 2021 and 2022.

These projects span retrofits as-a-service, solar plus storage PPAs, and stand-alone storage tolling agreements. Recurrent Energy has partnered with Southern Power and AIP Management (“AIP”) to provide development services to add 72 MW / 288 MWh of energy storage to the 200 MWac Tranquillity solar project located in Fresno County, California, and 88 MW / 352 MWh of energy storage to the 200 MWac Garland solar project located in Kern County, California. The Tranquillity and Garland solar PV projects were originally developed and constructed by Recurrent Energy in 2016 and are currently owned

by Southern Power and AIP. BESS retrofits on both projects are currently under construction. Recurrent Energy is also in the process of constructing the Slate project (300 MWac solar plus 140.25 MW / 561 MWh storage) and the 75 MW / 300 MWh BESS retrofit to the 100 MWac Mustang solar project. Slate and Mustang are both located in Kings County, California and are owned by Goldman Sachs Renewable Power LLC.

STEM, INC. AND CLEANCAPITAL SIGN MOU TO FUND MIDMARKET ENERGY STORAGE PROJECTS Stem, Inc., a global leader in artificial intelligence (AI)-driven clean energy storage services, announced it has entered into a memorandum of understanding (MOU) with respect to a new financing partnership with CleanCapital, a leading clean energy investment platform and one of the largest owner-operators of distributed solar assets in the United States. Under the terms of the MOU, Stem and CleanCapital will work to develop a framework whereby Stem will provide its expertise and support for smart energy storage services—including storage hardware and Athena® smart energy software—to developers as CleanCapital’s preferred energy storage provider with right of first refusal in favor of Stem for all of CleanCapital’s storage projects that the parties originate together. The proposed partnership will focus on mid-market commercial energy storage and small utility front-of-meter (FTM) projects up to 30 megawatts (MW) across the United States. The partners will target commercial & industrial (C&I) end users and electric cooperatives—including deployments that qualify for the Solar Massachusetts Renewable Target (SMART) Program, a state initiative that promotes cost-effective solar development with customer-facing and grid service benefits.

JUNE- JULY ISSUE 2021 | PG 08

HONEYWELL LAUNCHES NEW BATTERY ENERGY STORAGE SYSTEM PLATFORM Honeywell announced its Battery Energy Storage System (BESS) Platform, which integrates Honeywell asset monitoring, distributed energy resource management, supervisory control and analytics functionality to enable organizations to accurately forecast and optimize their overall energy use. Honeywell’s BESS Platform leverages best practices for energy management such as energy arbitrage and demand management to deliver flexibility and control of when energy is purchased and used. The platform is ideal for a wide range of commercial and industrial companies, independent power producers and utilities. The BESS Platform is backed by Honeywell performance-based guarantees, which include predictable and consistent costs along with improved uptime.

Honeywell’s BESS Platform improves grid stability and sustainability while decreasing supply costs. If a generator fails or goes offline for any reason, the platform reduces the need to bring additional, non-renewable power generators online. In this scenario, a remote facility can maintain operations as the platform runs in parallel with traditional generators. The system can then restart the disconnected generator or initiate back-up generator sets before returning to standby mode.

PIVOT POWER, WÄRTSILÄ & HABITAT ENERGY ACTIVATE UK’S FIRST GRID-SCALE BATTERY STORAGE SYSTEM Pivot Power, part of EDF Renewables, Wärtsilä, the global technology company, and Habitat Energy, the battery storage optimisation specialists, activated the UK’s first grid-scale battery storage system directly connected to the transmissionnetwork as part of the £41 million Energy Superhub Oxford (ESO) project. The government-backed project, led by Pivot Power, integrates energy storage, electric vehicle (EV) charging, low carbon heating and smart energy management technologies to decarbonise Oxford by 2040 and creates a blueprint for other towns and cities to achieve net zero. The

RECURRENT ENERGY EXPANDS BATTERY STORAGE ACTIVITY BY EXECUTING 2.3 GWH OF STORAGE PROJECTS Recurrent Energy, LLC , a wholly-owned subsidiary of Canadian Solar Inc. announced it has expanded its energy storage footprint in the United States with several leading Battery Energy Storage Systems (“BESS”) contracted to be built in

system is the first to go live as part of Pivot Power’s plans to deploy up to 40 similar sites throughout the UK. The 50MW lithium-ion battery energy storage system will be directly connected to National Grid’s high-voltage transmission system at the Cowley substation on the outskirts of Oxford. It is the first part of what will be the world’s largest hybrid battery, combining lithium-ion and vanadium redox flow systems, which is due to be fully operational later this year.

The energy storage system will provide essential flexibility to cost-effectively integrate more renewables, increase system resilience and future-proof the UK’s electricity network.

2021 and 2022. These projects span retrofits as-a-service, solar plus storage PPAs, and stand-alone storage tolling agreements. Furthermore, Recurrent Energy has partnered with Southern Power and AIP Management (“AIP”) to provide development services to add 72 MW / 288 MWh of energy storage to the 200 MWac Tranquillity solar project located in Fresno County, California, and 88 MW / 352 MWh of energy storage to the 200 MWac Garland solar project located in Kern County, California. The Tranquillity and Garland solar PV projects were originally developed and constructed by Recurrent Energy in 2016 and are currently owned by Southern Power and AIP. BESS retrofits on both projects are currently under construction. Recurrent Energy is also in the process of constructing the Slate project (300 MWac solar plus 140.25 MW / 561 MWh storage) and the 75 MW / 300 MWh BESS retrofit to the 100 MWac Mustang solar project. Slate and Mustang are both located in Kings County, California and are owned by Goldman Sachs Renewable Power LLC.

JUNE- JULY ISSUE 2021 | PG 09

LNJ BHILWARA GROUP FORAYS IN ENERGY STORAGE SOLUTIONS MARKET; ANNOUNCES JV WITH REPLUS ENGITECH TO SET UP 1 GWH FACILITY IN PUNE

OVER 50 CALIFORNIA COMPANIES SEND LETTER TO CONGRESS URGING INVESTMENT TAX CREDIT FOR STORAGE The California Energy Storage Alliance (CESA) sent a letter to Congress urging inclusion of the investment tax credit (ITC) for storage in upcoming infrastructure packages. Over fifty California-based energy storage companies signed the letter, citing that enacting a storage ITC would provide Californians a “more resilient, reliable, and cost-effective electric system.”

The letter was sent just as California and other states like Texas and Arizona are anticipating a heat-wave and red flag warnings that will directly impact electric grids and power availability. The letter cites reliability issues, considering both system-wide emergencies and local public safety power shutoffs.

Energy storage enhances the capability of existing wires infrastructure to host electric vehicles, distributed generation, and other 21st century demands on the power system.

SUNVERGE RECEIVES REGULATORY APPROVAL TO BEGIN ELK NECK BATTERY STORAGE PILOT PROGRAM Sunverge, the provider of an industry-leading distributed energy resource (DER) control, orchestration and aggregation platform, announced that in collaboration with Delmarva Power, it has kicked off the innovative Elk Neck Battery Storage Pilot Program . Delmarva Power, an Exelon Company, had selected Sunverge in a competitive bid process last year. The program has now received key regulatory approvals from the Maryland Public Service Commission. Sunverge will now begin the process of acquiring participating customers in the program. It is anticipated that the project will be fully operational by Q1 2022. The program will provide back-up power to residents of Elk Neck, Md. In addition, the pilot program will provide multiple grid services to increase overall grid reliability, system integration of DERs, and participate in the PJM wholesale electricity market for ancillary services.

The project is planned to have 0.55 MW / 2.2 MWh capacity.

LNJ Bhilwara Group, a multi-diversified conglomerate, announced its entry into the lithium-ion battery business through its private promoter entities. The group has entered into a joint venture with Replus Engitech Pvt Ltd, a Punebased company pioneering advanced energy storage products and solutions to establish a 1GWh plant for LithiumIon Battery Modules & Packs, Battery Management Systems (BMS), Energy Management Systems (EMS), and Containerized Battery Energy Solutions (BESS). These products will cater to large Energy Storage Systems (ESS) for Renewable Integration, Micro Grid, Utility support, Railways, Telecom, Data centers, Transmission & Distribution Demand Management, Power Walls for Commercial, and Residential Applications. Battery Packs for 2-wheelers, 3-wheelers (both Swappable and Charge & Drive), Electric-buses, and 4wheelers are among the E-mobility Products. LNJ Bhilwara Replus will focus on building high-tech, energy-efficient, smart, secure, and sustainable solutions that enrich the lives and livelihoods of communities, businesses, mobility, and utilities throughout the world.

AZELIO COLLABORATES WITH MMR CONSTRUCTORS FOR JOINT ENERGY STORAGE PROJECTS A Memorandum of Understanding (MoU) is signed between Azelio and MMR Constructors (MMR) with the intention to develop projects combining Azelio’s long-duration energy storage, TES.POD[®], with solar PV to supply customer with renewable energy around-the-clock. The collaboration aims at an installed capacity of 250 MWh of Azelio’s TES.POD[®] by 2027, starting with a small scale installation in 2022. MMR is an industry leader in instrumentation and electrical construction, maintenance, and technical services, based in the US and with a global footprint of projects completed in 36 countries. In support of expanding its business offering in North America, a collaboration is initiated with Azelio as a system integrator in energy projects using Azelio’s energy storage solution, TES.POD, coupled with solar PV. Azelio’s energy storage solution, TES.POD, stores renewable energy in recycled aluminum. The energy is dispatched on demand from the storage to a Stirling engine, supplying electricity and heat with zero emission during night and at times during the day when direct production is not sufficient.

JUNE- JULY ISSUE 2021 | PG 10

ABB TO STRENGTHEN TECHNICAL PLATFORM FOR SALT-BASED ENERGY STORAGE COMPANY WITH ITS AUTOMATION & CONTROL SYSTEMS

LEYLINE RENEWABLE CAPITAL AND STARWOOD ENERGY GROUP SUPPORT DEVELOPMENT OF 400 MWAC BATTERY STORAGE Leyline Renewable Capital, a leading provider of debt and equity capital for renewable energy development and construction, and Starwood Energy Group Global, a private investment firm that specializes in energy infrastructure investments, announced a newly formed joint venture that will partner with American Power Ventures (“APV”) to develop and finance two standalone battery storage projects.

The joint venture provides unique access to development capital, development support, and permanent financing, and is open to finance other developers in the renewables space. The joint venture is providing APV with capital to develop battery storage projects in the Virginia PJM territory and Texas ERCOT territory with a total capacity of 400 MWac/1400 MWh. These battery storage developments will reinforce the intermittency of renewable energy assets and subsequently improve the reliability of the power grids in Virginia and Texas.

ABB has signed a cooperation agreement with Sweden-based energy storage company SaltX Technology to enable the development of a stable and scalable control system for EnerStore, a large storage development for the commercialization of nanocoated salt technology innovations.

SaltX’s unique technology allows salt to store power with a high energy density in a bulk material, which means it could scale to hundreds of megawatt (MW) hours, becoming a circular and sustainable energy storage solution for suppliers and customers across industries such as pulp and paper, metals and

manufacturing.

The innovative nanocoating, developed by SaltX over 15 years, makes it possible for systems to have a long lifetime, enabling customers to energize the storage when the electricity price is low and use the stored energy when prices are high, fulfilling their mission to help society shift to sustainable energy.

LUMEA STARTS EOI PROCESS FOR DEVELOPMENT OF 300MW GRID SCALE BATTERY IN AUSTRALIA Lumea, TransGrid’s commercial arm, commences a selective Expression of Interest (EOI) process for the development of a 300MW grid scale battery intended to be fully financed from private sector market participants without utilising government funding. In a first for Australia, the large scale battery storage system will operate in the National Electricity Market from the Deer Park Energy Hub in Victoria, the key source of electricity supply for metropolitan Melbourne. Lumea is engaging with energy sector organisations and renewable energy generators for participation in the project through a tender process to finalise choice of market participants. Lumea’s Head of Infrastructure, Nigel Buchanan said this is a great step forward to accelerating Australia’s clean energy transition. The EOI process will confirm market interest and determine the optimal size and duration of the battery. It will also inform whether there are further opportunities to supply system reliability services to the grid, as the energy economy transforms towards greater renewable generation. The Deer Park Battery will also optimise the use of renewable energy in Victoria and across the National Energy Market by providing energy storage services and dispatching power when most needed, as well as offering services to support grid reliability and system support. Lumea is also scheduled to complete the first grid-scale support battery in NSW in October to futher test the use of grid scale inertia, which is also a first in the market.

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KEY CAPTURE ENERGY & TALEN ENERGY PARTNER TO PROVIDE NEW BATTERY STORAGE PROJECT AT TRANSITIONING MARYLAND GENERATION FACILITY Key Capture Energy, LLC , a leading developer, owner and operator of standalone energy storage projects in the United States, announced that it has partnered with Talen Energy Corporation to install a 20 megawatt (MW) battery storage project adjacent to Talen’s H.A. Wagner (Baltimore, Md.) coal plant, with the potential to increase the battery project size in the future. The H.A. Wagner generation facility is among the coal-fired facilities that Talen announced will cease burning coal by the end of 2025 as part of its transformation to a sustainable, Environmental, Social and Governance (ESG)-focused future. Construction of the new battery facility is expected to start later this year with a targeted online date in 2022.

As part of its strategic

GLIL INFRASTRUCTURE INVESTS £150M IN SPECIALIST UTILITY AND ENERGY STORAGE INFRASTRUCTURE COMPANY FLEXION ENERGY GLIL Infrastructure (“GLIL”) has invested £150m in Flexion Energy (“Flexion”), the specialist utility and energy storage infrastructure company.

The investment will see Flexion develop, build, own and manage energy storage systems in the UK, specifically large-scale batteries connected to and servicing the electricity grid. The company bridges the gap between the development and financing of energy storage sites. GLIL’s investment will enable Flexion to construct and make operational an established pipeline of up to 300MW of grid connected battery storage systems within the next two years.

Furthermore, Flexion has an objective to deliver 1GW of operational storage systems within five years.

transformation to a renewable energy and digital infrastructure growth platform, Talen is developing one gigawatt of stand-alone battery storage projects across its U.S. footprint. The battery projects, which range from 20 to approximately 300 megawatts across three states, are expected to be developed over the next three to five years utilizing Talen-owned land and legacy fossil generation and transmission infrastructure. In addition to generating value, and advancing Talen’s transformation, these projects serve as another tangible expression of Talen’s Force for Good ESG strategy, providing new opportunities for employees and communities as fossil plants transition to run on cleaner fuels.

CANADIAN SOLAR WINS THE FIRST ENERGY STORAGE PROJECT IN COLOMBIA OF 45 MWH Canadian Solar Inc. announced it has been awarded the first utility-scale battery storage project in Colombia of 45 MW / 45 MWh. The project was awarded in the public tender launched by Colombia’s Ministry of Energy and Mines, via its affiliate UPME, the Mining and Energy Planning Unit. Located in the city of Barranquilla in northern Colombia, this project will consist of a 45 MWh lithium-ion battery energy storage system and is expected to reach commercial operation by June 2023. The project is granted with a 15-year revenue structure with the Colombian government and is indexed to the country’s inflation or producer price index. The Barranquilla project will strengthen the electricity transmission network in the Atlántico Department in northern Colombia and support the government’s efforts to prevent future supply deficits. It will also support greater penetration of renewable energy in the Colombian electricity system by improving the reliability of intermittent sources of energy.

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BCPG, VRB ENERGY PARTNER TO ACCELERATE UTILITY-SCALE ENERGY STORAGE BUSINESS

VISION MECHATRONICS DELIVERS INDIA’S FIRST MEGA WATT SCALE HYBRID ENERGY STORAGE PROJECT

BCPG, a leading renewable energy company in Thailand and Asia-Pacific, is expanding its business into utilityscale energy storage with the investment of 24 million USD in VRB Energy, a global leader in vanadium flow battery technology and manufacturing. This strategic partnership paves a strong pathway for BCPG to fulfil its ambition to be at the forefront of the utility-scale renewable energy and energy storage business. The investment is expected to fuel the expansion of VRB Energy’s production facilities to serve the rapidly growing demand of its VRB-ESS® systems in China and meet the rapidly developing energy storage market in Thailand and across the Asia-Pacific region. The partnership between BCPG and VRB Energy is emblematic of the green energy revolution worldwide where energy storage is the key enabler to a shift from fossil-based to renewable energy generation.

Vision Mechatronics, a leading name in the Energy Storage Industry has offered a ZeroBlackout Solution to Brahmakumaris at Om Shanti Retreat Centre. The Retreat Centre has opted for a Solar based unique combination of MW scale Hybrid Battery storage system i.eLithium-Lead hybrid which has utilized the existing old batteries with the fresh new Lithium Batteries to have a long duration backup to ensure that there is a smooth power transition when the grid fails. Adding further Dr. Rashi Gupta, Managing Director, Vision Mechatronics who is fondly known as “Batterywali of India said, “All our work and products are developed & manufactured in India. Using a hybrid battery energy storage system has ensured that there is maximum utilization of existing resources at the time of addition of new ones to achieve a cost of energy at Grid Parity. Opting for a hybrid energy storage model can help commercial entities reduce their initial Capex investment by 35 to 40% for a long-duration energy storage project. With the recent launch of the ACC battery scheme, India offers a great opportunity for energy storage and e-mobility market and this is our contribution in making India truly Aatmanirbhar.”

ENERGY STORAGE STARTUP INDI ENERGY GETS FUNDING FROM MUMBAI ANGELS NETWORK Mumbai Angels Network, a startup investment platform for early-stage venture investments, has announced to have invested in Indi Energy, a energy storage startup.

Indi Energy said it would use the funding amount to enhance its research and development activities and scale up its proprietary sodium-ion battery technology, which is made from agricultural waste. Indi Energy is committed to developing energy storage technologies such as Lithium-ion and Sodium-ion batteries, solid-state batteries and Supercapacitors. Furthermore, Indi Energy has made breakthroughs in Sodium-ion batteries with its energy density 3-4 times better than the commercialized lead-acid batteries that are currently available in the market. The company has also filed patents for Sodiumion batteries, having invented a high-performance Sodium-ion negative electrode material from rice/paddy straw and cattle manure.

SIEMENS TO BUILD ONE OF EUROPE’S MOST POWERFUL BATTERY STORAGE FACILITIES IN GERMANY Siemens Smart Infrastructure and Zukunftsenergie Nordostbayern GmbH (ZENOB) signed a letter of intent in Wunsiedel for the turnkey construction of a 100 megawatt battery storage facility in the German town. The plant, with a storage capacity of 200 megawatt hours, is intended to use surplus renewable energy and cover demand peaks in the power grid. The 5,000 square meter energy storage facility is capable of supplying 20,000 average households with electricity. The lithium-ion battery storage system will be provided by Fluence, a joint venture between Siemens and AES. Siemens will handle project management, including a technical implementation concept, as well as the construction of a medium-voltage switchgear system and connection to the high-voltage grid. Among other things, the letter of intent also includes the development of a financing concept.

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INTERVIEW

Suhas Sutar Head M a r kEnergy e t D i r eStorage, ctor,

Mahindra Susten In an exclusive interview with EnergyStorage Pro magazine, Mr. Suhas Sutar - Head Energy Storage, Mahindra Susten talks about how the company has emerged from the Covid crisis and the recent developments. He also spoke about the present and expected future trends with respect to storage in the country.

HOW IS THE YEAR 2021 PROGRESSING FOR MAHINDRA SUSTEN? HOW HAS ENERGY STORAGE EMERGED AT YOUR COMPANY FROM THE COVID CRISIS?

PLEASE TELL US ABOUT SOME RECENT INITIATIVES AND DEVELOPMENTS AT MAHINDRA SUSTEN.

Covid-19 was a global disaster, it was an unprecedented time for everyone. The offices were closed and we started working overnight. Susten started focusing on the Hybrid Energy segment from FY19, during COVID period the team worked from home relentlessly understanding the BESS technology, bidding the available tenders. In 2020 when it was the peak of COVID spread, the team worked with stakeholders remotely and managed to submit and win bids online. We won India' s largest BESS tender in FY 21 having capacity 2 x 3MW PV + 2 x 3MW/7.5MWHr BESS projects in RA. The project was awarded in FY21 and is about to commission in Q2 of FY22.

In Susten, currently we are focusing on energy storage beyond Li-ion, assessing different energy storage technologies. Looking at current round the clock tenders in the market we are also working on a customised system sizing tool using Python coding language.

WHAT ARE SOME OF THE TECHNOLOGICAL INNOVATIONS HAPPENING IN THE ENERGY STORAGE SECTOR CURRENTLY IN INDIA? India having such a huge grid with only one energy storage technology will never be able to fulfil its demand. In addition to conventional pumped hydro storage India is working on developing markets for different energy storage technologies such as Liion, Hydrogen, Ammonia based energy storage, flow battery etc. Different pilots conducted in the country and the current EOIs by SECI & NTPC strengthens this development.

MAHINDRA SUSTEN SHALL CONTINUE TO WORK AS IPP TO GROW IT’S RENEWABLE ENERGY PORTFOLIO EXPONENTIALLY INCLUDING HYBRID ENERGY PROJECTS."

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ACCORDING TO YOU, WHAT ARE SOME OF THE PRESENT TRENDS AND EXPECTED FUTURE TRENDS IN THE ENERGY STORAGE SECTOR IN INDIA? India is marching right ahead on its target of 450GW of renewable energy sources by 2030. With such huge renewable energy resources in the grid, energy storage as a spinning reserve proves to be very critical. As per IEEFA, India’s battery storage market is a sleeping giant. The current push to deliver renewable energy round the clock is bringing big hope to the energy storage market. The new initiatives/ guidelines such as Regulation for Ancillary services, SAMAST - Scheduling, Metering, Accounting and Settlement of Transactions in Electricity will further strengthen the stationary energy storage market & its development.

WHAT IS MAHINDRA SUSTEN'S PLAN OF GROWTH FOR THE NEXT COUPLE OF YEARS? Mahindra Susten shall continue to work as IPP to grow it’s renewable energy portfolio exponentially including Hybrid Energy projects. Obviously this will have a big deal of energy storage.

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INSIGHTS

ENERGY STORAGE IN INDIA: MARKET OVERVIEW AND THE ROAD AHEAD

Battery storage systems are quickly becoming one of the most important technologies for effectively integrating large amounts of solar and wind renewables into power grids across the world. Electricity storage technologies have a wide range of uses in the power sector, ranging from e-mobility and behind-the-meter applications to utility-scale applications. The article reads out details about energy storage in India and its various angles.

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ENERGY STORAGE: THE CONCEPT The transfer of electrical energy from a power network into a form that can be stored until it is converted back to electrical energy is known as energy storage.

Although electricity demand fluctuates throughout the day, one of the distinguishing characteristics of the electric power sector is that the amount of electricity that can be generated is rather constant over short periods. A significant step towards electricity distribution would be the development of such a technology that could store electricity so that it can be used to meet future demands as and when required. Electricity storage devices can help reach this goal by managing the amount of power required to provide customers at periods when demand is highest, such as during peak load. Renewable energy, whose power production cannot be controlled by grid operators, can also benefit from these devices to make it smoother and dispatchable. Energy storage is predicted to play a larger role in the energy markets as prices fall, moving away from niche applications like grid balancing and toward broader applications like replacing traditional power sources for reliability, providing power-quality services, and assisting renewables integration.

MARKET OVERVIEW During the projected period of 2020-2025, the Indian battery energy storage systems market is expected to grow at a CAGR of around 10%. The Indian battery energy storage market is expected to be driven by factors such as meeting the country's electricity demand during peak hours of the day when battery energy storage systems serve as a backup. The Indian battery energy storage market is expected to be driven by rising electricity demand due to growing population, industrialization, and urbanization. When compared to other countries like the United States, China and Europe, India’s energy storage sector lags way behind. Despite the high demand for energy storage, the lack of a policy framework has stifled the growth and development of the battery energy storage business in India.

These batteries can be used as a backup supply for a variety of sectors and plants in the event of an energy crisis. Increased electricity output from renewable sources like solar and wind also brings up new possibilities for these energy storage systems. These batteries can also store excess power created by solar and wind energy for later use, maximizing the efficiency of the energy generated.

FUTURE OUTLOOK The global need for power system flexibility, particularly from batteries, will quadruple as variable renewables are deployed and electricity consumption patterns shift.

Renewables will account for two-thirds of all new capacity added to global power generation capacity by 2040, according to stated policies, with solar PV being the main source of installed capacity around 2035.

These trends are expected to lead to a large growth in the usage of battery storage, with India accounting for more than a third of total deployment by 2040. In India, combining solar PV with low-cost batteries offers an appealing way to deliver electricity and flexibility. Soon this combination would be competitive with new coal power plants, allowing for the deployment of bigger volumes of cost-effective solar PV. In this "Cheap Battery Case," coal-fired power generation capacity might reach a plateau in the 2030s without jeopardizing system dependability or electricity affordability. Solar PV capacity in India alone might reach 800 GW by 2040.

This would result in India's power-related CO2 emissions beginning to drop shortly after 2030.

Apart from this, with the correct and appropriate governmental support and policy framework, new additions and innovations in grid-balancing, peak shifting and frequency regulation capabilities can be developed and worked upon in the times to come. This will ensure significant penetration of renewable energy in the Indian energy market. With the rising penetration of renewable assets, energy storage is projected to play a critical role in regulating grid unpredictability.

CONCLUSION

Energy storage is thought to be the future of solar, and the sector will continue to grow as the Indian economy improves and the government measures to promote sustainable energy become more prevalent. The Indian government should focus on policy certainty in terms of customs, taxes, and other fiscal measures, issue more solar and battery storage tenders and incentivize local producers to establish an ecosystem for the inhouse production of globally competitive products.

Hence, energy storage is the way to go for a long, healthy, renewable-powered future!

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INSIGHTS Emission Economics Of

RENEWABLE PLUS STORAGE VS COAL

Pankaj Batra

Project Director, SARI/EI/IRADe

Many people underestimate the role of energy storage in decarbonisation. They say that the renewable energy sources (RES) plus energy storage propagandists ignore the energy involved in manufacturing the RES plus energy storage devices, particularly electrochemical batteries. They, in fact, say that the energy used for production of renewable energy sources combined with storage is greater than the energy generated by the combination. They are

right in pointing out that the issue of the energy required for production of renewable energy sources should be considered. We have to see the life cycle impact on the environment, and not only from the point when the RES and battery are ready to serve, i.e. from cradle to grave. So, to be on an even keel, we should compare the energy used in manufacture of batteries and renewable generation vs manufacture of a conventional power plant, say, a coal based power plant. In addition, we should measure the emissions for the lifetime operation of the fossil fuel plant vs a solar plus battery plant.

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L e t ’s s e e h o w m u c h e m i s s i o n s g o i n t o m a n u f a c t u r i n g a solar power plant of 500 MW with a 1200 MWh battery (i.e. a 200 MW battery for 6 hours), which is reasonable, since the peak load for most part of the year in the future is expected to be largely during the day, which would be met through the solar plant, the remaining capacity going to meet the charging requirement for the battery, which would meet the load after the sun goes down. This is akin to controllable generation of 200 MW. We will compare this with a 200 MW coal based plant. Considering an average emission factor of 0.82 tons of carbon dioxide per MWh of a coal based power plant in India, as per the CEA Report on “CDM - CO2 Baseline Database”, the emissions over a year for a 200 MW coal based power plant, considering 80% Plant Load factor, would be 11,49,312 metric tonnes. Considering the life of 25 years of the coal b a s e d p l a n t , t h i s w o u l d t r a n sl a t e t o 2 , 8 7 , 3 2 , 8 0 0 m e t r i c tonnes of carbon dioxide emissions over the 25 years.

As per literature available (IEEE Spectrum issue of November 2014), the energy consumed in manufacturing a solar power plant, is recovered in 2 years of operation.

So, even if coal based power is used for this energy, the energy used for manufacture would be recovered by energy generated by the solar power plant in 2 years. In the life cycle of the solar power plant, therefore, two years of carbon dioxide emissions would ensue. This would translate to 14,36,640 metric tonnes of carbon dioxide, considering the 20% Capacity Utilization Factor of the 500 MW solar power plant. However, if the percentage of generation mix for manufacture of the solar plant increases more towards renewable energy, then the carbon emissions would be even lesser.

The total solar (500 MW) plus two lithium ion battery plant (1200 MWh lithium) would therefore emit 19,16,640 metric tonnes of carbon dioxide emissions for the life cycle of the plant, as compared to 2,87,32,800 metric tonnes of carbon dioxide emissions for the life cycle of the coal based plant of 200 MW. The coal based plant, therefore emits 15 times the carbon dioxide as compared to solar plus storage of equal effective capacity. This is with the caveat that the norms of electricity consumption of solar plant manufacturing of 2014 levels were taken and the generation used for manufacturing of solar plant and lithium ion batteries was fossil fuel rich. Also, no carbon dioxide emissions were considered for manufacture of the coal based power plant.

All these assumptions would change. The energy intensity of manufacturing of solar power plants would likely have become lesser. The energy mix these days would be less fossil fuel rich and would continue to be more weighted towards renewables, as time passes. And, of course, there would be carbon dioxide emissions for the manufacture of coal based power plants, as well as continuous mining operations for coal, which we have ignored.

Considering all these factors, it can be stated with firm assurance that solar plus storage far outstrips coal based power plants, in terms of life cycle emissions. A combination of renewables plus storage can lead to deep decarbonisation.

L e t ’s n o w m e a s u r e t h e c a r b o n d i o x i d e e m i s s i o n s f o r manufacturing a lithium ion battery. According to the data of a report titled “Lithium-Ion Vehicle Battery Production Status 2019 on Energy Use, CO2 Emissions, Use of Metals, Products Environmental Footprint, and Recycling” sponsored by the Swedish Energy Agency, 150-200 Kg of carbon dioxide would be used per kWh battery capacity for the cradle to grave life of the lithium battery, using fossil fuel rich generation. Considering a 1200MWh b a t t e r y , t h i s t r a n sl a t e s t o c a r b o n d i o x i d e e m i s s i o n s o f 2,40,000 metric tonnes.

Considering a battery replacement once during the 25 years, the emissions would double to 4,80,000 metric tonnes during the 25 years’ life of the solar power plant on account of battery replacement.

As per literature available, the energy consumed in manufacturing a solar power plant, is recovered in 2 years of operation."

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PERSPECTIVE

WHAT IS THE ROLE OF ENERGY STORAGE IN DEEP DECARBONISATION? W i t h t h e c l i m a t e c h a n g e p r o b l e m l o o m i n g o v e r o u r h e a d s , d e c a r b o n i z i n g e l e c t ric it y p ro d u c t io n is g r o w i n g i n i m p o r t a n c e . O n e p o t e n t i a l d e c a r b o n i z a t i o n p a t h w a y i s t h r o u g h t h e p r o l i f e ra t io n o f re n e w a b l e e n e r g y s o u r c e s . T h e i s s u e w i t h d e p e n d i n g o n r e n e w a b l e e n e r g y i s t h a t i t s r e a l- t im e g e n e ra t io n is w e a t h e r d e p e n d e n t a n d m a y n o t b e c o i n c i d e n t w i t h r e a l - t i m e e l e c t r i c i t y d e m a n d . A p o s s ib l e s o l u t io n t o t h i s m i s m a t c h b e t w e e n r e n e w a b l e - a v a i l a b i l i t y a n d d e m a n d p a t t e r n s i s e n e r g y s t o ra g e . E x c e s s r e n e w a b l e e n e r g y d u r i n g p e r i o d s o f r e l a t i v e l y l o w d e m a n d c a n b e s t o r e d f o r u s e i n s u b s e q u e n t p e rio d s o f r e l a t i v e l y l o w r e n e w a b l e a v a i l a b i l i t y . E n e r g y s t o r a g e i s o n e o f a f e w t e c h n o l o g ie s w it h t h e f u n c t i o n a l i t y t o c o m p l e m e n t r e n e w a b l e e n e r g y . W h e r e a s e l e c t r i c i t y d e m a n d a n d g e n e ra t io n is i n s t a n t a n e o u s , e n e r g y s t o r a g e h a s t h e c a p a b i l i t y t o s t o r e e l e c t r i c i t y w h e n d e m a n d i s l o w a n d d is p a t c h it a g a i n d u r i n g r a m p i n g h o u r s a n d p e r i o d s o f h i g h d e m a n d . W i t h o u t e n e r g y s t o r a g e , e x c e s s re n e w a b l e e n e r g y m a y o t h e r w i s e b e c u r t a i l e d . N o t o n l y d o e s e n e r g y s t o r a g e e n a b l e i n c r e a s e d l e v e l s o f re n e w a b l e s a n d t h e r e b y r e d u c e g r e e n h o u s e g a s e m i s s i o n s , b u t i t a l s o a l l o w s s y s t e m o p e r a t o rs t o o p t im iz e t h e p e r f o r m a n c e a n d u t i l i z a t i o n r a t e o f a l l g r i d a s s e t s . L e t ' s f i n d o u t m o r e a b o u t t h i s f r o m o u r e x p e rt s .

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ONE OF THE Dibin Chandran Senior Engineer, Power & Renewables

IDENTIFIED SOLUTIONS TO THESE PROBLEMS IS ENERGY STORAGE. ENERGY STORAGE CAN STORE

Climate change and its effects are no more a future scenario; it is the current reality that we are facing.

Electricity and heat production are the most significant contributors to global GHG emissions, which causes climate change—followed by transport, manufacturing and construction (essentially cement and similar materials), and agriculture.

ELECTRICITY WHEN DEMAND IS LOW AND DISPATCH IT AGAIN DURING RAMPING HOURS AND PERIODS OF HIGH DEMAND."

FIGURE 1: GHG EMISSION BY SECTOR

DECARBONISATION OF ELECTRIC GRID Decarbonisation of the electric power sector must play a central role in mitigating the worst impacts of climate change. Most climate stabilization plans envisage the global power sector emitting very low or zero carbon dioxide (CO2) by 2050 while also expanding to electrify and decarbonize portions of the industry and transportation

Sectors. Large scale implementation of renewable energy into the power grid is the primary step towards decarbonizing power systems/grid.

Indeed, two critical zero-carbon resources, wind turbines and solar photovoltaics (PV) have experienced rapid growth and installation rates over the last decade. In addition to their zerocarbon electricity generation, wind and solar resources have many other positive attributes which make them attractive additions to power systems.

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CHALLENGES The primary challenge associated with the significant penetration of wind and solar PV to the grid is the variable nature of its generation profile. for example, solar PV generation will vary according to the irradiation level at the site, directly impacting the power output to the power system. Wind energy poses a similar challenge, and while the generation profile for wind energy is quite di ff erent than that of solar, variable electricity output remains. This variability spans many time scales ranging from minutes to days to years. Each di ff erent time scale presents a challenge, for which di ff erent solutions are needed for wind and solar to play a dominant role in the future electricity generation mix. The challenge will be more complex when considering distributed generation, where it is difficult for the dispatch center to identify the load demand (in case of captive utilisation of power plants).

An ideal reliable power system must generate power equivalent to the electricity demand in a given instant.

Thus, as the variable renewable energy (VRE) penetration and VRE mix in total generation grows, other resources are required to mitigate the variability challenges. These resources must-have functions to rapidly respond to smoothen any fluctuations in the grid due to variable renewable energy. Not only the technical issues but there are considerably high financial losses due to this variable generation, mainly due to the curtailment of power when the off-peak demand hours and peak generation come together. One of the identified solutions to these problems is energy storage. Energy storage can store electricity when demand is low and dispatch it again during ramping hours and periods of high demand. The introduction of energy storage will increase the reliability of RE generation and enable increased levels of renewables and thereby reduce greenhouse gas emissions. It also allows system operators to optimize the performance and utilization rate of all grid assets.

SOLUTIONS Sharp decline in lithium-ion battery costs in the recent years catalyze the widespread use in consumer electronics and increasing use for electric vehicles. This also attracted the RE investors to incorporate energy storage more broadly into power systems. Indeed, over 90% of new energy storage deployed globally in 2015 and 2016 were lithium-ion batteries. This surge of cheap batteries is leading to further discussions about how large a role energy storage might be able to play to meet societal decarbonisation goals.

AN IDEAL RELIABLE POWER SYSTEM MUST GENERATE POWER EQUIVALENT TO THE ELECTRICITY DEMAND IN A GIVEN INSTANT. THUS, AS THE VARIABLE RENEWABLE ENERGY (VRE) PENETRATION AND VRE MIX IN TOTAL GENERATION GROWS, OTHER RESOURCES ARE REQUIRED TO MITIGATE THE VARIABILITY CHALLENGES.

FIGURE 2: LITHIUM-ION BATTERY PACK MARKET PRICE

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THERE ARE SEVERAL ENERGY STORAGE TECHNOLOGIES THAT COULD PROVIDE A LONG-DURATION ENERGY SUPPLY." Considering the characteristics of lithium-ion batteries, it is normally used for short duration applications, which typically range from 2 to 8 hours. This is su ffi cient for some uses in the power system, including voltage support, reserve capacity, and area regulation. In a power system with high penetration of RE, a short-duration span is insu ffi cient for reliable power system operation.

This limitation of battery storage has identified a need for another resource that can smooth out the variability of renewables and provide enough power to meet demand. To achieve high reliability RE generation, energy storage should have the capability to meet demand over long durations and all seasons. This enables Long-Duration Energy Storage (LDES), energy storage technologies with 10 or more hours durations.

Long-Duration Energy Storage (LDES) will encourage the electric grid operators to add more intermittent wind and solar into total energy generation in a decarbonised power system. This is primarily accomplished by storing energy during periods of excess renewable capacity and then discharging it in high quantities over half-day and multi day periods. There are several energy storage technologies that could provide a longduration energy supply. Such as power to gas (including hydrogen and synthetic gas), thermal energy storage methods like heat pumps, electrochemical techniques such as flow batteries, and mechanical methods like pumped hydro storage (PHS) and compressed air energy storage (CAES).

PUMPED HYDRO STORAGE (PHS): PHS is the most widely deployed large-scale energy storage technology. PHS plants store energy in the form of gravitational potential energy. When demand is low, PHS plants pump water into a higher reservoir, and when demand is high, release the water to drive a turbine and create electricity. There are a limited number of places where the geography allows for this type of energy storage, however, thereby limiting the new deployment of traditional PHS plants. Recent updates to PHS designs include retro-fitting existing hydro reservoirs and concepts for subsurface or underground PHS plants, where flooded mine shafts or other cavities can be used as the lower reservoir.

COMPRESSED AIR ENERGY STORAGE (CAES): CAES plants store energy in the form of potential elastic energy by compressing air and storing it in a reservoir when demand is low. When demand is high, the pressurised air is released, expands, and drives a turbine. CAES plants are also geologically dependent, as the energy storage component of the pressurised air needs a large-volume reservoir for air. Underground reservoir types that can be used include salt dome, bedded salt, hard rock, and porous rock formation.

FLOW BATTERIES: Flow batteries are an emerging energy storage technology. Flow batteries store energy by dissolving electroactive materials in electrolyte solutions. Whereas conventional batteries have the electroactive materials stored in the electrode, flow batteries store the electroactive materials by dissolving them into anode and cathode solutions that are stored in separate tanks. This results in a battery that can have its energy and power components scaled separately from one another.

The materials in the two solutions produce or store power through a reversible electrochemical reaction.

POWER TO GAS: Power to gas (P2G) technologies are currently in the development and demonstration phase. P2G technologies are classified as chemical energy storage. This is because they store electricity at a high level by creating chemical compounds and creating electricity by subsequently burning them.

There are two primary types of P2G, power to hydrogen (P2H) and power to synthetic gas (P2SG). The first process in P2H and P2SG uses water electrolysis to convert electricity and water into hydrogen, which can then be stored in highpressure containers or natural underground caverns. To produce electricity, the hydrogen is then run through a fuel cell. P2SG requires an extra step of methanation. After electrolysis, hydrogen is further processed with a carbon source to create synthetic methane gas. This synthetic methane gas (syngas) can then be burnt through the use of a traditional gas turbine. There is much interest in P2G technologies today beyond electricity generation. This is because hydrogen and syngas have to potentially be used as direct fuels for transportation and could assist goals for decarbonising the transport sector.

JUNE- JULY ISSUE 2021 | PG 23

THERMAL ENERGY STORAGE:

WAY FORWARD

Today, most thermal energy storage (TES) systems used for electricity applications are concentrating solar power (CSP) plants using molten salt. These systems store electricity through the use of thermal energy. To charge, electricity is converted into thermal energy and is used to heat or cool some storage medium.

When the electricity is needed again, a heat exchanger converts the thermal energy back into steam (in the case of hot temperature storage mediums) which drives a turbine and generates electricity. There are three main categories of TES systems, sensible heat storage (SHS), latent heat storage (LHS), and thermochemical heat (TCH).

The current storage industry and renewable energy are in their top gear; however, concentrating only on battery energy storage is only a solution for a few years. Considering the deep decarbonisation where we envisage 100% carbon-free energy utilisation, LDES needs more attention. More reliable LDES integration to the electric grid requires policy framing for its R&D and implementation.

TO ACHIEVE HIGH RELIABILITY RE GENERATION, ENERGY STORAGE SHOULD HAVE THE CAPABILITY TO MEET DEMAND OVER LONG DURATIONS AND ALL SEASONS."

JUNE- JULY ISSUE 2021 | PG 24

Deepak Kumar Thakur Partner - L&L Partners

Puspak Chamariya Associate - L&L Partners

An oversimplification of the direct nexus between the decarbonization process and energy storage, points towards the fundamental link of ‘effective harnessing of renewable energy’. Undoubtedly, coal /fuel generated electricity and power is the chief source of carbon, hence, the process of decarbonization begins with an organic shift to renewable sources of energy. However, the lack of avenues for storage of solar and wind energy has stifled the decarbonization process in India, as well as globally.

In the present scenario, at the macro as well as the micro level, the majority of electricity is generated from coal, and a small portion is generated through renewable sources, and the low carbon emitting sources are out of reach for the public, in terms of awareness, accessibility, affordability and adaptability.

While the transitive theory would make the journey towards decarbonization an easy formula – renewable energy to replace current energy consumption – there are many commercial and legal hurdles that the process is willing to endure. The government’s “Atma Nirbhar” approach is a perfect stimulus to catalyse this decarbonization process to have an end-to-end shift to cleaner energy in all production-consumption-storage aspects.

POLICY REFORMS: THE TOP-DOWN APPROACH The Bureau of Energy Efficiency aims to streamline the efficiency model of energy consumption and usage in energy-intensive industries. In the decarbonization race, the only national policy “Perform, Achieve and Trade” scheme, now including 11 energy-intensive sectors, is targeted to bring efficiency standards in these industries close to global best practice levels by 2040. Material efficiency measures such as increasing recycling, reducing the weight of consumer products, increasing fabrication yields and using energy-intensive materials more intensely along with modernization of India’s recycling industry (currently amongst lowest recycling rates) which will enable huge energy savings. However, this is only a start.

While the above mentioned policies aim to make energy usage efficient, and whereas the ambitious aim of renewable energy of 450 GW by 2030 is a work-inprogress, until now there has been little thought towards energy storage. With policy moves made by the Government to promote green hydrogen as a source of energy, as well as the PLI Scheme for ACC Batteries, there is holistic movement in the right direction, especially since the National Mission on Transformative Mobility and Battery Storage in 2019. With increased focus on trying to create storage facilities for renewable energy, the Indian energy market is moving in a futuristic direction.

The commercially motivated MSMEs’ drive a large part of functional mid-tiers business to opt for low-cost energy options which are more carbon-emitting.

Likewise, there is no tracing or oversight of the unorganized sector, which is a large market in India. The lack of awareness coupled with the lack of incentive for this sector has kept it far from the decarbonization process. Not just awareness, but material movement towards making renewable energy and energy storage affordable and accessible for consumers, is the need of the hour. The government will have to contemplate financial incentives for shifting to renewable energy sources, incentives for self-generation, taxes on using carbon sources etc. to streamline and push the move of decarbonization, across sectors.

All the abovementioned hurdles and requirements can be met with proper development of storage facilities of renewable energy, phased out effectively.

CONCLUSION – LOOKING FORWARD This decarbonization cannot be a swift process, in a developing economy like India. However, it is the gradual shift that will make it affordable, and accessible over time, with better R&D and cheaper technology for storage of energy. As the global market watches, India has a chance to click on the early mover advantage, and soar ahead on its Paris Agreement commitments of carbon reduction.

JUNE- JULY ISSUE 2021 | PG 25

Kanika Verma Associate, Renewable Energy & Power and Strategic Investment Research Unit, Invest India

ACCORDING TO A RECENT ANNOUNCEMENT BY R.K. SINGH, INDIA’S POWER AND RE MINISTER, GOI IS PLANNING TO FLOAT TENDERS FOR 4000 MWH OF BATTERY STORAGE IN AN EFFORT TO ADD MORE STORAGE." The goal of the paris climate agreement, signed in 2015, was to limit the global warming level to below 2 degree celsius and preferably below 1.5 degree Celsius, compared to pre-industrial levels. A total of 196 countries signed the agreement, thus, recognizing the need to address the growing issue of climate change. It is well understood that to limit global warming levels around the world, it is important to limit the global carbon emissions. As the world further develops and economies progress, the global energy needs are also bound to rise.

Therefore, to address the issue of climate change it is important to look at cleaner sources of energy.

According to an article by the International Energy Agency (IEA), the electricity sector accounts for 40% of the global carbon emissions which makes it a crucial piece of the global decarbonization puzzle.

This requires a reliance on Renewable Energy (RE) sources, especially wind and solar. However, RE sources, dependent on uncontrollable natural cycles, can be categorized as relatively unpredictable and hence, have a fluctuating supply. While there are other newer and upcoming sources of RE such as ocean energy, energy from hydrogen, bioenergy, amongst other sources, are still underdeveloped for commercial consumption.

Any decarbonized system which is reliant on intermittent RE should be able to shift electricity from time of high production to times of high demand and eventually also be able to do this across seasons.

Energy storage plays a key role in both grid integration and balancing of variable energy sources, continually balancing supply, and demand. By increasing the system’s overall flexibility, it can lead to improvements in power quality, reduce peak demand, enhance capacity of distribution and transmission grids, avoid or reduce deviation penalties etc.

Energy storage systems can be used in residential, commercial, and industrial areas, thus, having the potential to improve power quality and reliability. Energy storage systems would also lead to a minimization of diesel consumption used for power backup systems, in addition to decarbonization of other sectors like temperature control (heating and cooling) and transportation. It is also the main component for electric vehicles both in terms of cost and performance determination.

The interesting part of the energy storage journey is the fact that it will take a range of technologies to lead to the completion of the decarbonization journey. While it is important to have efficient storage systems, the upcoming industry must also be backed by strategic government support.

The Government of India (GoI) is giving a strong push to the sector. According to a recent announcement by R.K. Singh, India’s Power and RE Minister, GoI is planning to float tenders for 4000 MWh of battery storage in an effort to add more storage.

Solar Energy Corporation of India (SECI) has paved the way by releasing multiple RE plus battery storage auctions mandating roundthe-clock RE power supply. Additionally, the government has also released a Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) worth INR 18,100 crore (USD2.49 billion), which is intended to establish local manufacturing capacity of 50 GWh of ACC and 5 GWh of niche ACC capacity.

The world has realized the importance of battery storage in the decarbonization journey and while we are taking steps towards its development, it would be interesting to see how the story shall unfold.

JUNE- JULY ISSUE 2021 | PG 26

INSIGHTS WHAT ARE SOME EMERGING ENERGY STORAGE

Technologies In India?

The Government of India has an ambitious target for both EVs and renewables — by 2030, 30% of all vehicles sold to be electric and 40% of total energy generation to be from renewable sources.

Renewable energy, when connected to the electricity grid, creates more uncertainty on the supply side as the inherent variability of irradiance & wind speed in solar/wind power makes the supply more unreliable. Storage added with PV/wind or hybrid systems minimizes the uncertainty of natural resources by backing up the power when the supply is more than demand and discharge when it is less. Apart from that, EVs will require some form of energy storage to drive the vehicle. This will result in immense use of energy storage in the coming future in India.

A recent analysis by India Smart Grid Forum (ISGF) suggests that India’s energy needs for all major applications will be around 2,400 GWh by 2032. Whereas in 2018, the demand for energy storage technology was around 23 GWh. Thus, the progress of energy storage, in terms of technology, is going to be extremely vital in the energy transition that takes us to the cleaner energy future.

THE MISSION OF GOVT OF INDIA IS TO CREATE AN ECOSYSTEM FOR ENERGY STORAGE AND IT SHOULD BE TECHNOLOGY AGNOSTIC. THE FOCUS SHOULD BE ON THE PERFORMANCE PARAMETERS LIKE LIFE CYCLE AND ENERGY DENSITY, ETC."

Shubhamay Ganguly AGM- Energy Storage & Innovation, Amp Energy

JUNE- JULY ISSUE 2021 | PG 28

PUMPED HYDRO is arguably the most established energy storage option around the world. It works by virtue of releasing/absorbing energy by pumping water between reservoirs at different heights. However, this technology is very much locationspecific and implemented only at locations with favorable geographic locations.

Several electrochemical batteries are the next most preferred technology. They are modular in nature and can thus be installed at practically any location.

When we discuss the advanced storage battery, it is almost always about lithium-ion. In this type of battery, lithium ions move from the negative electrode through an electrolyte to the positive electrode during discharge, and back when charging.

Recent development in sodium sulphur, Zinc-air batteries have increased the use of easily available material for batteries decreasing the dependency on relatively rare materials such as lithium, cobalt, etc. Moreover, aluminumair batteries also have shown significant promise with having higher energy density though there are issues related to stabilization. Safety standards and other parameters are also under experimentation. Redox flow batteries which have negligible performance degradation over years and a discharge capacity of 100%, also have good potential to be used in grid applications integrated with renewable power. Green hydrogen is also a new buzz word and a lot of enthusiasm can be seen all across for green hydrogen. India is also in the process of promoting green hydrogen and announced a national hydrogen energy mission, in the union budget, which looks to develop a hydrogen ecosystem in the country for renewable energy integration, mobility, and replacement of fossil fuel in industries like steel, fertilizer and petroleum refineries. Some of the technologies that can be gamechanger in the coming future are:

ZINC GEL BATTERIES use zinc which is a well-known material used in batteries for a long time and uses an electrolyte that doesn’t evaporate.

Performance parameters like energy density and thermal stability can be customized in nature to use in different applications. It can be used for peak shaving and grid balancing ancillary applications which require very high power for a very low time.

REDOX FLOW BATTERY employs an electrolyte where energy is stored and a cell stack where energy conversion occurs. This is very effective in terms of its lifetime. However, the efficiency and energy density are very low which remains a challenge. For a long time period, storage flow batteries are very useful.

JUNE- JULY ISSUE 2021 | PG 29

SODIUM-ION BATTERY

ADVANCED LEAD ACID BATTERY

is effectively very similar to the lithium-ion battery in terms of cell construction and working principle. The largest advantage of sodium-ion batteries is a high natural abundance of sodium. Round trip efficiency is also expected to be better. At present, there are a few companies around the world developing commercial sodium-ion batteries for different applications.

is a promising hybrid, long-life lead-acid energy storage device. It combines the fastcharging rates of an ultracapacitor technology with the energy storage potential of lead-acid battery technology in a hybrid device with a single common electrolyte.

GREEN HYDROGEN will be produced on-site through the use of natural resources like sunlight or water. Importantly, hydrogen has the highest gravimetric energy density of all known substances. In electrical terms, the energy density of hydrogen is equal to 33.6 kWh of usable energy per kg. However, there are many challenges such as a) High overall costs of the system including the capital, operational, maintenance, and running cost b) Supply chain development across all the pillars are still in their nascent phase c) Low user acceptance and social awareness d) Developing after-sales service for hydrogen technology which needs to be addressed.

It is quite evident that battery technology is evolving rapidly globally, and India is trying to capture the development happening across the world. Various storage technologies are in different stages of development which are vastly different in terms of performance capability, longevity & cost. The choice of technology India should adopt should be application specific and must consider technical compatibility, requirement, manufacturability, and cost competitiveness.

The mission of Govt of India is to create an ecosystem for energy storage and it should be technology agnostic. The focus should be on the performance parameters like life cycle and energy density, etc. The Indian Union cabinet has approved the ₹ 18100 Cr PLI scheme to promote Giga factories which will promote different promising technologies in a bigger way.

JUNE- JULY ISSUE 2021 | PG 30

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PERSPECTIVE

FUTURE ROADMAP: HOW IS INDIA POISED TO BECOME AN ENERGY STORAGE HUB? A s e l e c t r i c i t y g e n e r a t e d f r o m a n y s o u r c e , w h e t h e r t r a d i t i o n a l o r r e n e w a b l e , n e e d s t o b e c o n s u m e d im m e d ia t e l y , it h a s l e d t o t h e d e v e l o p m e n t o f e n e r g y s t o r a g e t e c h n o l o g i e s . P r e s e n t i n t h e e l e c t r i c s y s t e m f o r d e c a d e s , e n e rg y s t o r a g e t e c h n o l o g i e s p r o v i d e f l e x i b i l i t y i n t h e u s e o f e l e c t r i c i t y , f o r b o t h c e n t r a l i s e d a n d d e c e n t ra l is e d s u p p l y p r o v i s i o n s . C o n v e n t i o n a l u s e o f s t o r a g e s y s t e m s b y w a y o f b a t t e r i e s ( i n e l e c t ro n ic g o o d s , v e h ic l e s ) a n d a c c u m u l a t o r s ( i n v e r t e r s a n d U P S a s e l e c t r i c i t y b a c k u p s o l u t i o n s ) h a v e b e e n d r i v e n b y c o m m e rc ia l a n d t e c h n o l o g y c o n s i d e r a t i o n s ( a n d r e q u i r e m e n t s ) , w i t h l i t t l e p o l i c y d i r e c t i v e t o i n c e n t i v i s e t h e u s e o f t h e s e n o v e l s o l u t io n s . T h e d y n a m i c s o f e n e r g y s t o r a g e i n I n d i a a r e c h a n g i n g r a p i d l y , w i t h t h e i n c r e a s i n g d e m a n d f o r a d v a n c e d b a t t e ry t e c h n o l o g i e s a n d e m e r g i n g a p p l i c a t i o n a r e a s . A l s o , t h e f o c u s h a s s h i f t e d t o e n e r g y s t o ra g e w it h t h e in t ro d u c t io n o f t h e P L I s c h e m e o n a d v a n c e d b a t t e r y t e c h n o l o g y . I n d i a i s t o u t e d t o e m e r g e a s o n e o f t h e l a rg e s t d e s t in a t io n s g l o b a l l y f o r e n e r g y s t o r a g e i n s t a l l a t i o n s b y 2 0 4 0 . I t i s t h u s i m p o r t a n t t o s t u d y t h e e m e rg in g l a n d s c a p e o f e n e rg y s t o r a g e t e c h n o l o g i e s a n d t h e i r a p p l i c a t i o n s i n t h e r e n e w a b l e e n e r g y s e g m e n t . H o w I n d ia ’s e n e rg y s t o ra g e landscape will evolve in the future is something we asked our experts and here is what they had to say.

JUNE- JULY ISSUE 2021 | PG 32

Manoj Kumar Upadhyay Dy Adviser, NITI Aayog

India is committed to reducing emission intensity up to 33-35% from the 2005 level by 2030 and set the target of 40% non-fossil based electricity generation in the energy mix. This requires radical measures to scale up the share of renewable energy (RE) besides the on-going program of 175 GW RE by 2022 & 450 GW by 2030. Integration of such massive amounts of RE which are intermittent and distributed in the power system poses serious challenges to grid operations. Studies and analysis show that extra flexibility investments in the Indian grid are needed on a fast track for managing the RE resources efficiently. Energy storage will play a crucial role in increasing the system’s overall flexibility by serving multiple grid applications. The recent developments in the Electric Vehicle (EV) sector, Green Hydrogen and its ambitious targets will only increase the demand for energy storage systems.

Energy storage typically refers to the storage of previously generated electric energy for use at a later time. Energy storage systems vary in form and size depending on the type of stored energy and include batteries (capacity range of 100200 MW), pumped storage hydropower (capacity range of 250-1000 MW), flywheels (capacity range of 10-20 MW), and pressurized gas storage systems (capacity range of 0-180 MW). Apart from bridging the gap between demand and supply of electricity (and thereby increasing reliability), energy storage systems help minimize deviation from schedule.

Energy storage market in India witnessed a demand of 23 GWh in 2018 with 56% of the battery demand coming from the inverter segment. During 2019-2025, the cumulative potential for energy storage in behind the meter and grid side applications is estimated to be close to 190 GWh by India Energy Storage Alliance. Interestingly, only 17% of energy storage is likely to be deployed at grid scale.

Majority of the deployment during this period at grid scale will be driven by RE integration, Fast Response Ancillary Service (FRAS) market and T&D deferral. On the other hand, the electric vehicle industry consumed over 5 GWh of batteries in 2018 in India. This number is likely to be over 36 GWh by 2025. During 2019-2025, the EV industry is forecasted to consume over 110 GWh of batteries. Some of these can be used through V2G (Vehicle to Grid) technology to meet flexibility needs of the distribution grid.

All the demand for energy storage is currently being met through imports in India. Therefore, the Government of India approved the National Programme on Advanced Chemistry Cell (ACC) Battery Storage for domestic manufacturing of the Advance Chemistry Cell (ACC). It will support the Atmanirbhar Bharat initiative. ACC battery Storage manufacturers will be selected through a transparent competitive bidding process. The manufacturing facility would have to be commissioned within a period of two years. The incentive will be disbursed thereafter over a period of five years. The programme is covered under Production Linked Incentive (PLI) Scheme for achieving manufacturing capacity of Fifty (50) GigaWatt Hour (GWh) of ACC and 5 GWh of "Niche" ACC with an outlay of Rs.18,100 crore.

As per, International Energy Agency estimated, by 2040, India has 140 GW of battery capacity in the STEPS, the largest of any country, and close to 200 GW in the Sustainable Development Scenario. The roadmap for assured supply of clean energy indicates the need for a clear-cut policy and regulatory framework for energy storage, similar to India’s policy on renewable energy.

THE RECENT DEVELOPMENTS IN THE ELECTRIC VEHICLE (EV) SECTOR, GREEN HYDROGEN AND ITS AMBITIOUS TARGETS WILL ONLY INCREASE THE DEMAND FOR ENERGY STORAGE SYSTEMS."

JUNE- JULY ISSUE 2021 | PG 33

Saransh Roy

Senior Investment Specialist, Institutional & Infrastructure Investments, Invest India

INDIA AIMS TO ACHIEVE SELFRELIANCE IN THE ENTIRE LIFECYCLE OF RENEWABLE ENERGY DEVELOPMENT." As the world becomes increasingly aware of the devastating effects of climate change, conscious recognition of the firepower needed to combat it is taking hold across the world. Central to the strategy to temper climate change effects is energy transition. Electricity generation, currently, from fossil fuels stood at 84%. This massive reliance on fossil fuels gives an opportunity to satisfy our energy needs from cleaner sources, giving the world its greatest asset to fight climate change.

Electricity generation from renewable sources stood around 11%, globally. This power generated, being intermittent, needs stable connections to the grid and energy storage systems (ESS) for storing it. Better your ESS, better would be your grid integration and better would be the stability of power supply. ESS, therefore, becomes a critical piece for achieving energy transition. ` Globally, the energy storage capacity is expected to grow at 31% CAGR, producing 741 GWh of cumulative capacity by 2030, according to Wood Mackenzie. India, being the 3rd largest renewable energy economy in the world, will contribute significantly towards this global capacity.

In India, the share of power generation from renewables is expected to hit 64% by 2030. The cost of Li-Ion-based battery storage systems has gone down, globally, to USD 137 per kWh in 2020 from USD 1,100 per kWh in 2010, according to an analysis from IEEFA. If the decline continues, then, by some estimates, it will hit USD 58 per kWh by 2030. Both the developments, when seen in unison, creates favorable conditions for India to emerge as an energy storage hub in the future.

The International Energy Agency (IEA) projects 140-200 GWh of battery storage capacity by 2040, potentially making India the world’s thirdlargest energy storage market by capacity.

Sensing potential India holds in the storage market, the Indian Government took strategic steps in this direction to boost demand for energy storage and develop its manufacturing value chain. The Government will invite bids for 4 GWh of grid-scale battery storage. Putting this in perspective, 1 GWh of battery capacity can power 1 million homes for one hour and 30,000 electric cars. NTPC has floated a global tender for 1 GWh of grid-scale battery storage. Similarly, SECI has invited bids for 2 GWh of standalone energy storage systems. The knock-on effect of these bids will boost the manufacturing value chain of energy storage. Coupled with the USD 2.4 Bn Production-Linked-Incentive (PLI) for Advanced Chemistry Cell (ACC) battery storage, the government intends to establish a manufacturing ecosystem to support 50 GWh of ACC and 5 GWh of niche ACC capacity. This will ensure domestic value addition of at least 25% which will be then proportionately increased to 60% in five years. These incentives will also help India in the Research and Development (R&D) of advanced battery storage.

The efforts towards supporting the energy storage market underpin India’s commitment to meet its renewable energy target. In this pursuit, India aims to achieve self-reliance in the entire lifecycle of renewable energy development.

Strategic demand creation and financial incentives to the industry will accelerate India’s emergence as a hub for energy storage.

THE COST OF LI-ION-BASED BATTERY STORAGE SYSTEMS HAS GONE DOWN, GLOBALLY, TO USD 137 PER KWH IN 2020 FROM USD 1,100 PER KWH IN 2010, ACCORDING TO AN ANALYSIS FROM IEEFA."

JUNE- JULY ISSUE 2021 | PG 34

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