The big challenge of storing renewable energy

- Installation of storage units is clearly a challenge for renewable targets to drive India's green energy transition.

Last year, renewable energy accounted for a remarkable 83 percent of the world's electricity generation capacity. Wind and solar energy have a significant share of this. However, saving renewable energy is the biggest challenge as it is variable and erratic in nature, be it wind or solar energy. The only solution is storage, the capacity of which is increasing at the rate of 23 percent every year. Storage facilities in China and the US are growing the fastest at an annual rate of around 60 percent, while India has a good outlook. India is expected to become the world's third largest country with renewable energy capacity by 2030, but could become the top fifth country in terms of developing storage facilities.

In May 2021, the central government announced a production-based incentive scheme for manufacturing advanced cell chemistry batteries. The government expected that with the implementation of the scheme, domestic and foreign, about Rs. 45,000 crore investment may come. Last August, the Ministry of Energy released a draft to promote energy storage systems at the national level. After preparing this draft, the government announced in September 2023 a Rs. 3,760 crore Viability Gap Fund was approved.

Under the scheme, the government has promised financial support of up to 40 per cent of the total cost of battery energy storage systems projects of a total capacity of 4,000 MWh by 2030-31. The government said that this financial assistance will reduce the total cost of collection to Rs. 5.50 to Rs. 6.60 per kilowatt-hour corresponding to his desire to do so. The power ministry has also indicated that the government may at any time issue directives for renewable energy projects with a capacity of more than 5 MW to have energy storage systems up to at least five percent of their capacity.

Expressing its commitment to the global climate action agenda, India has set a target of increasing renewable energy generation capacity to 500 GW by 2030. It will mainly include 292 gigawatts of solar energy. The role of energy storage systems becomes important given the potential shortage between solar peak hours and peak demand hours.

The most common forms of energy storage are battery energy storage systems and pumped storage projects. Green hydrogen and ammonia storage, currently under development, are also being considered as alternatives. Coupling of energy storage systems with solar and wind generation is important not only to ensure continuity of energy supply but also to take various necessary measures for frequency response and voltage support to improve grid quality.

The Central Electricity Authority has estimated a storage capacity requirement of 60 GW by 2030. 12 percent of the 500 GW of renewable energy generation capacity proposed for the same period. These include 42 GW of battery energy storage systems and 18 GW of pumped storage projects. Compared to this estimate, storage capacity today is about 30 gigawatts. Lithium is an important mineral for battery energy storage systems. Globally, Chile, Australia, China, Argentina and Brazil are considered the largest producers of lithium. Lithium deposits have recently been discovered in Jammu-Kashmir and Rajasthan in India. It is estimated that these two deposits can supply 90 percent of India's total lithium demand.