Government's Initiative to Boost Renewable Energy Adoption

The government has mandated future solar project tenders to include energy storage systems, aimed at enhancing renewable energy adoption and addressing challenges related to solar power intermittency.

Key Aspects of the Initiative

• Advisory by Central Electricity Authority:
  • Renewable energy agencies and state utilities must include a minimum of two hours of co-located energy storage capacity, equivalent to 10% of installed capacity, in solar project tenders.
• Impact on State Utilities and Distribution Companies:
  • Encourages state utilities to sign power purchase agreements.
  • Mandates distribution companies to include two hours of storage with rooftop solar power plants.

Benefits of Energy Storage Integration

• Addresses intermittency challenges associated with solar power.
• Provides critical support during peak demand hours.
• Enhances grid stability and optimizes power supply during non-solar hours.

Strategic Goals and Implementation

• Accelerates the development of energy storage capacities in the country.
• Government's annual bidding trajectory of 50 GW managed by designated agencies: Solar Energy Corporation of India (SECI), NTPC, and NHPC.
• Specification of a compliance mechanism within tenders to ensure storage availability during non-solar hours.

Projected Outcomes

• Expected deployment of approximately 14 GW/28 GWh of storage-backed solar projects by 2030.
• Aligns with India's broader renewable energy goals of achieving 500 GW by 2030.
• Decline in battery prices anticipated to reduce power purchase costs during non-solar hours.