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India Proposes Mandatory Energy Storage for Solar Projects to Enhance Grid Stability and Reliability

In a significant move to bolster grid stability and ensure reliable power supply, the Indian government through Central Electricity Authority (CEA) has issued a new advisory guidelines mandating energy storage systems with solar power projects. The initiative, spearheaded by the Ministry of Power, aims to integrate approximately 14 GW/28 GWh of storage capacity by 2030, leveraging the recent decline in battery prices to reduce power purchase costs during non-solar hours.

New Advisory Guidelines Aim to Integrate 14 GW/28 GWh of Storage by 2030, Reducing Evening Power Costs and Improving Renewable Energy Efficiency

Key Highlights of the Proposal:


Mandatory Storage for Solar Projects:

The advisory suggest that all new solar power projects should include a minimum of four hours of daily battery energy storage. This requirement is designed to ensure that solar energy generated during the day can be stored and utilized during peak evening hours when solar generation is unavailable.


Enhanced Grid Stability:

By integrating storage systems with solar projects, the government aims to address the intermittency of solar power, thereby improving grid stability. The storage systems can operate in single-cycle or double-cycle modes. In single-cycle operation, the storage is charged using co-located solar power and discharged during evening hours. In double-cycle operation, the storage can also be charged using grid energy during low-demand periods and discharged during peak hours, further optimizing energy use. The system should be equivalent to 10% of the installed solar capacity (in case of 2-hours) in all future tenders to be issued by the Renewable Energy Implementing Agencies (REIAs), State Agencies.


Economic and Operational Benefits:

The proposed storage clause is expected to bring long-term economic benefits, including improved utilization of transmission lines constructed for solar power evacuation. This will reduce transmission requirements and charges, enhance energy security, and increase the overall efficiency of renewable energy systems. Additionally, the decline in battery prices is anticipated to lower power purchase costs during high-demand evening hours when energy rates on the exchange are typically elevated.


Reliability for Consumers:

The guidelines also recommend mandating two-hour storage for rooftop solar plants. This measure is expected to improve the reliability of power supply at the consumer end and alleviate the burden on distribution licensees caused by over-injection of solar power during peak generation hours.


Implementation and Compliance:

The advisory emphasizes the need for a suitable compliance mechanism to ensure the availability of storage during non-solar hours. Distribution licensees will play a crucial role in implementing these guidelines, which are expected to be finalized after approval from the competent authority.

“Storage integration is no longer optional—it’s critical for grid stability and cost efficiency. This framework ensures solar projects contribute round-the-clock, not just during daylight.”

Conclusion:

The proposed integration of energy storage with solar power projects marks a pivotal step in India's renewable energy journey. By addressing the challenges of solar intermittency and enhancing grid stability, the initiative not only promises to improve the reliability of power supply but also paves the way for a more sustainable and efficient energy future.

BESS, PSP and RE Integration in 2030 | RESI Analysis
BESS, PSP and RE Integration in 2030 | RESI Analysis

The advisory aligns with India’s 500 GW renewable energy target by 2030 where the 364 GW Solar and 121 GW of wind needs to be integrated. To support the RE integration, ESS of 74 GW/412 GWh is required including 47.24 GW/236.22 GWh from Battery Energy Storage System and remaining from Pump Storage System. By addressing solar/wind intermittency, it is estimates a 15–20% reduction in evening-hour power purchase costs and a 30% boost in transmission line utilization, enhancing ROI for green infrastructure.

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