New Delhi, Dec 19
India's energy storage capacity is expected to shoot up 12-fold to around 60 GW by 2031-32 which would play a key role in stabilising the power grid as the country transitions to renewable energy, according to an SBI Research report.
The country's energy storage landscape is evolving rapidly, with the proportion of renewable energy (RE) projects incorporating storage solutions recording a significant increase from 5 per cent in FY20 to 23 per cent in FY24, the report said.
This will surpass the growth anticipated for renewable energy sources themselves.
The share of variable renewable energy (VRE) in power generation is expected to triple by 2031-32 which could destabilise the grid. The challenge lies in the inherent mismatch between the generation of VRE and peak power demand. This mismatch often leads to grid instability, surplus energy during peak production hours, and continued reliance on fossil fuels during non-solar periods.
The integration of Energy Storage Systems (ESS), is crucial in managing this transition and ensuring stability. ESS provides a solution by storing excess renewable energy during high production times and releasing it when demand peaks.
Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP) are expected to dominate the energy storage market, with BESS, in particular, emerging as the dominant technology due to its locational flexibility, rapid response time, and improvements in technology that are further reducing costs, the report points out.