New Delhi : Finance Minister Nirmala Sitharaman’s upcoming budget speech is expected to include several announcements aimed at promoting green energy adoption, including the High Expected Production Linked Incentive (PLI) scheme for battery storage and pumped storage plant policy for hydropower .
The people, who sought anonymity, said Sitharaman is expected to unveil plans to build a 1 gigawatt (GW) battery storage system in the next two years. It will be the largest such battery storage system in the world.
PLI for battery storage is part of the energy storage policy formulated by the government. “Even if the energy storage policy comes before the budget, the PLI is likely to figure in the next budget,” said one of the two officials.
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As part of New Delhi’s plan to achieve 500GW installed green energy capacity by 2030 and zero carbon emissions by 2070, the upcoming Union Budget in February is expected to include announcements for round-the-clock renewable energy supply. storage solution.
Queries sent to spokespersons of the ministries of new and renewable energy, power and finance remained unanswered till press time.
In September, Union Minister for New and Renewable Energy RK Singh said that the government is working on a PLI scheme for grid-level renewable energy storage, which refers to large-scale energy storage solutions. Singh also said that the government will invite bids for one of the world’s largest grid-level battery energy storage system projects.
He said the only way to cut the cost of energy storage is to start local manufacturing and increase volumes. “That’s what I’m going to do. The PLI, which I will come up with, will be only for grid-level storage,” Singh said.
He also stressed that lithium-ion batteries would not be the preferred technology for grid-level storage and that other chemistries would be explored.
The demand for energy storage has increased in the last two years as the need for round-the-clock renewable energy has increased. In July, the Center added an energy storage obligation to its existing renewable purchase obligation for the first time.
The government’s Energy Storage Obligation (ESO) targets a certain percentage of total energy to be derived from energy storage. The initial target is 1% for FY24, rising to 4% by FY30. To meet the ESO, at least 85% of energy purchases and annuals must come from renewable energy sources.
According to experts, energy storage can play an important role in grid integration and balancing of variable generation sources. Increasing the overall resilience of the system can improve power quality, reduce peak demand, increase the capacity of distribution and transmission grids, and avoid or reduce deviation penalties.
By using energy storage systems and renewable energy, residential and commercial consumers can improve the quality and reliability of their electricity.
Similarly, pumped storage plants serve as a storage mechanism for hydropower. They are made up of two water reservoirs at different heights, which generate electricity as the water flows through a turbine. The system also requires power as it pumps the water back into the upper reservoir.
Along with battery storage, the government is making efforts to promote pumped storage plants, and the much-awaited policy for pumped hydro is likely to come in the upcoming budget. The policy for pumped hydro plants has been in the works for more than a year. Last year, Singh said the government has identified around 63 projects with a total capacity of 96GW.
The government has also brought out bids for energy storage systems.
Recently, Greenco Group announced that it has won the lowest bid for the world’s first and largest technology-agnostic energy storage tender, floated by state-run power producer NTPC Ltd. The tender is for 3000MWh for a period of 25 years, and Greenco won. Tender through its Pumped Hydro-backed bidding.
The government also solicited bids for energy storage systems.
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