Battery storage capacity in India reaches 219.1 MWh – pv magazine International

July 10, 2024 Uma Gupta

From pv magazine India

As of March 2024, India had installed 219.1 MWh/111.7 MW of total battery energy storage system (BESS) capacity. A new Mercom India report titled ‘India’s Energy Storage Landscape’ indicates that 120 MWh/40 MW of this capacity was added in the first quarter of 2024.

According to the report, photovoltaic systems combined with battery storage systems account for 90.6% of the total installed BESS capacity.

Mercom details the state of energy storage installations in India and highlights key states for the development of energy storage capacity. It covers tariff trends, pipeline and installed capacity of standalone BESS projects, renewable energy plus BESS and pumped storage.

The report said the rapid addition of intermittent renewable energy sources such as solar and wind power has significantly impacted grid stability. In March 2024, solar and wind power accounted for 28.9% of the country’s electricity capacity. To ensure the effective integration of renewable energy sources and grid stability, policy measures such as the deviation settlement mechanism, grid connectivity regulations and ancillary service regulations are being issued, which is driving the demand for utility-scale energy storage.

The Feasibility Gap Funding (VGF) scheme aims to install 4 GWh of BESS, supported by a budget of INR 37.6 billion (USD 452 million). The VGF, along with energy storage obligations and tender guidelines for energy storage projects, with or without renewable energy, is increasing the number of energy storage projects in the country.

“India is a growing market for energy storage, still in its early stages. Despite the rapid growth in renewable energy, energy storage has lagged behind, potentially leading to grid constraints and lack of flexibility and stability. The urgency seen in renewable energy initiatives has been missed in energy storage. To achieve energy transition goals and manage the exponential growth of renewable energy, the government needs to prioritize energy storage to avoid the challenges faced by other countries with increasing intermittent power but insufficient storage capacity,” said Raj Prabhu, CEO, Mercom Capital Group.

The report said Chhattisgarh is the leader in BESS installations, accounting for 54.8% of the cumulative installed capacity.

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According to Central Electricity Authority (CEA) data, India’s total operational pumped-storage capacity stood at 3.3 GW as of March 2024. Telangana and West Bengal account for nearly 76% of this capacity.

As of March 2024, 1.6 GWh/1 GW of stand-alone BESS, 9.7 GW of renewable energy projects with energy storage, and 78.1 GW of pumped-storage hydro projects were at various stages of development, of which 60 GW are under research and analysis and 18.1 GW are under development.

Rajasthan has the largest battery-powered electricity storage (BESS) capacity under development, driven by the state’s favourable renewable energy policy provisions and annual energy storage commitments by fiscal year 2030.

To meet the demand for efficient use of renewable energy, government agencies have announced tenders for a total amount of 57 GW and conducted auctions for 11.5 GW of energy storage projects as of March 2024. Bidding for standalone and renewable energy storage projects totaled 7.4 GW in Q1 2024.