Moving strongly towards its green energy goals, India has achieved 50% of its installed electricity capacity from clean sources, five years ahead of its 2030 target under the Paris Agreement. With its overall power generation capacity currently at 484.8 GW, more than 234 GW of this is derived via non-fossil fuel sources, such as solar, wind, nuclear and large hydro. A crucial element in reaching this goal has been BESS (Battery Energy Storage Systems). Some elaboration is required to understand the critical role of BESS.
Challenges and Opportunities
As energy sources transition from fossil fuels to renewable energy (RE), challenges arise in the integration of large quantities of fluctuating RE into power grids for a reliable and consistent electricity supply. On the other hand, conventional sources such as coal, hydro energy (along with storage) and nuclear power provide steady, controllable power supplies since their energy generation may be adjusted according to demand.
However, as renewable sources such as solar and wind produce electricity as per natural conditions, their output is variable and unpredictable. Since power is only generated when there is sunlight or wind, this energy must be used immediately, or it should be stored or banked. If not, the unused energy goes to waste. The inconsistency of RE creates problems in ensuring a stable power grid. To address the intermittency issues of RE, flexible solutions are required.
Advantages and Applications of BESS Technologies
By storing electricity from RE and traditional sources to be used efficiently later when required, BESS is transforming energy management. BESS boosts reliability and sustainability with critical grid support and by capturing excess power from wind and solar.
BESS applications are used in diverse ways to improve energy management, storing electricity for use when needed, while making power systems more efficient and cost-effective. They include:
- Microgrids: These provide backup power while stabilising independent energy systems, even when main power grids fail.
- UPS support: This allows uninterrupted power to critical equipment (hospitals, data centres, factories, etc.) during outages.
- Peak shaving and load management: In essence, BESS balances the power load between peak and off-peak hours. Typically, prices are at their highest when there is a peak electricity demand. Conversely, standard rates prevail when there is low demand during off-peak periods. Peak shaving permits BESS users to store power in off-peak hours and discharge it during peak periods to help curb costs.
- Frequency regulation: Outages and blackouts can be triggered by discrepancies between the generated and required energy, but by reacting quickly, BESS secures sub-second frequency responses that stabilise the network. It also guarantees stable voltage by keeping it within predetermined limits.
Some Disadvantages
Every product has its pros and cons. BESS is no different. Disadvantages include its high cost, flammability, intolerance of extreme temperatures, as well as overcharge and over-discharge issues. Its lifecycle and disposal are also challenging. Mining for lithium, nickel and cobalt has a huge social and environmental impact. If not managed properly, used-battery disposal is a hazard to human health and the environment.
Nonetheless, innovations in battery design are facilitating easier waste disposal while making it more recyclable. Meanwhile, deployment of large-scale battery systems raises safety concerns, such as the risk of thermal runaway and fires. However, strong safety steps and advances in technology are imperative to mitigate such risks. As BESS deployment increases, so will the need for robust recycling and end-of-life management solutions to resolve ecological and resource concerns.
Select Global Success Stories
Yet, global case studies hold out hope that BESS can be deployed safely and efficiently in India. Humidor BESS in North Los Angeles County, America, highlights the transformative impact of large-scale energy storage. Given its storage capacity of 400 MW with 1,200 MWh of energy, the project is poised to reduce the region’s dependence on gas-based power plants, contributing to lower emissions and cleaner air.
Equally vital is a small-scale BESS unit, the Vallecito Energy Storage Resilience project in Santa Barbara County, America. With a storage capacity of 10 MW plus 40 MWh of energy, this community-focused BESS installation is housed on only one acre of leased agricultural land. Notwithstanding its small size, it boosts resilience with its great reliability for the local grid-restricted community. Commissioned in January 2021, it highlights the effectiveness of local energy storage in mitigating regional energy problems.
The Issue of Skilled Human Resources
Apart from managing the above, institutional readiness is required for the deployment of BESS, which will generate thousands of new jobs by 2030. This includes work during the design phase, such as battery sizing and configuration, construction and commissioning roles like installation, testing, completion of grid connections, etc., plus O&M roles for battery maintenance, HVAC systems, electrical wiring and more.
But BESS roles need specialised skills in R&D, testing, product engineering, production, maintenance and more. As finding the required number of skilled personnel is difficult, companies need to invest in skilling, reskilling and upskilling programmes to build a dedicated pool of specialised BESS workers. Institutional readiness is only possible if a pipeline of skilled BESS workers exists to meet clean energy targets.
Potential Steps to Meet BESS Targets
To achieve BESS objectives, the Centre should utilise a multidimensional approach encapsulating policy, investment, skilling and capacity building measures. A long-term policy framework must be drawn up, backed by financial incentives promoting innovation via R&D while building a skilled workforce. Further, the National Energy Storage Mission (NESM) should actively promote BESS usage by outlining clear targets along with financial support. Regulatory processes in NESM and PPAs (power purchase agreements) must also be streamlined to incentivise BESS investments while supporting the efficient use of allied resources.
BESS should also be incorporated into long-term grid plans to manage peak demand and clean energy variability while enhancing grid stability. BESS deployments must also be incentivised near solar and wind farms, which will improve grid stability and lower curtailment. Besides, VGF (viability gap funding) should continue well beyond the 2030-31 deadline since prolonged support will give a big fillip to BESS. Tax holidays and loans at subsidised rates should be provided for BESS projects, as a conducive investment environment will lead to greater participation from private players, including public-private partnership projects. Outlays under the PLI (production-linked incentive) scheme could be enhanced for BESS projects. Sovereign green bonds could also facilitate better funding for renewable energy initiatives.
Additionally, the scale-up of BESS usage should be risk-proofed by facilitating proper disposal of batteries to curb or eliminate environmental risks. Various ministries like the Power Ministry and MoEFCC (Ministry of Environment, Forest and Climate Change) should provide coordinated guidelines regarding the second use of batteries while promoting proper compliance with Battery Waste Management Rules.
By implementing all the above measures, India could scale up BESS projects effectively, while integrating more clean energy and boosting grid stability. Finally, these measures will enhance the reliability of energy resources and boost decarbonisation efforts, contributing towards a cleaner, greener planet.
