India to add 8,500 MWh battery energy storage by 2027-end

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India will add 8,500 megawatt hour (MWh) battery energy storage capacity by the end of 2027 with a target of reaching 74,000 MWh by 2031-32,  Central Electricity Authority (CEA), Chairperson Ghanshyam Prasad said on July 9.

"Currently, India's commissioned battery energy storage capacity is meagre at 506 MWh. But, the good thing is that we have a solid number of projects under pipeline and in tendering stage," Prasad said at the India Energy Storage Week organised by India Energy Storage Alliance (IESA) in New Delhi.

The problem with renewable energy is that it is intermittent. Unlike thermal and most other power generation facilities, renewable energy typically does not have a steady output since, for example, solar power generation is impossible at night, and wind power depends on prevailing weather conditions.

"At least 8,500 MWh capacity is under pipeline which is expected to be operationalized in the next 2 years. Further, 42,000 MWh is under tendering stage. We may not feel the necessity of energy storage now, but from 2026-27, battery energy storage systems will be needed in a phased manner as the ongoing renewable energy projects will be ready by then," he added.

Also read: India announces Rs 5,400 crore funding scheme to build 30 GWh battery energy storage.

The problem with renewable energy is that it is intermittent. Unlike thermal and most other power generation facilities, renewable energy typically does not have a steady output since, for example, solar power generation is impossible at night, and wind power depends on prevailing weather conditions.

To diversify its energy storage solutions, the government is also pushing for pumped hydro storage projects. Prasad said this year, the government will commission 3000 MW of pumped storage projects. Some units of the pumped storage projects in Tehri, Uttarakhand and Pinnapuram, Andhra Pradesh already have been commissioned.

"What is important is raising the capacity of pumped hydro storage plants from 5 GW at present to 50 GW or more by 2031-32. The CEA last year approved 7.5 GW capacity and this year it is targeting to clear somewhere around 25 GW of pumped storage capacity, which means these projects will get commissioned in another 4 years or by 2029-30," Prasad said.

Also read: Govt looks to triple clearances for pumped hydro storage projects this fiscal.

Pumped storage projects are hydroelectric power generation systems that use two water reservoirs at different elevations. They act like giant batteries for electricity storage. When the demand increases, the stored water is released to the lower reservoir, passing through turbines to generate electricity.

Half of India’s electricity generation capacity could be non-fossil fuel based from as early as December this year, even as the share of renewables in the country’s energy consumption mix is likely to remain low at 13-15 percent, according to government data seen by Moneycontrol.