India is all set to invest in the first-of-its-kind standalone renewable battery power bank. With an investment of Rs. 2000 Crore, India wants to make green energy available on tap for discoms and grid operation during peak demand. But the spike in the price of lithium, key ingredients to make batteries, and the supply chain disruptions due to the Russia-Ukraine conflicts may weigh on industry response.
As per the SECI’s (Solar Energy Corporation of India Ltd) tender launched, the government entity implemented India’s social and wind energy plans earlier this week. This project will have a storage capacity to supply 500MW for two hours or 1000 MWh (Mega Watt Hour), the renewable energy ministry stated on Saturday.
Discoms can hire storage capacity, which will be charged using renewable energy and power to control high demand. The project is to be located in the locality of the Fatehgarh-III substation of the intersect transmission system in Rajasthan.
The project will be set on a building’s own operating basis, in which the developer will be responsible for the security connectivity and necessary permissions. The central transmission utility will provide the land on a right-to-use basis.
The government has a target of 4000 MWh of battery storage capacity according to the plan to increase the penetration of renewable energy in the national grid. According to the Central Electricity Authority, an optimal operation mix envisages a battery storage capacity of 27,000MW or 1,08,000 MWh by 2029-30.
This project aims to support the development of a market in the energy storage domain. Currently, India is considered a low-priority market by global battery producers, focusing on the US and Europe which are mainly focused on storage-based renewable energy projects.