BESS is a game-changer for India’s energy transition. It enhances grid stability, enables renewable energy adoption, supports EV infrastructure, and provides energy security. As India moves towards a greener future, BESS will play a vital role in shaping a sustainable and resilient energy ecosystem, writes Rajeev Tiwari, Vice President, RX Infotech Pvt. Ltd.
India’s Battery Energy Storage System (BESS) market is experiencing significant growth, driven by the increasing integration of renewable energy sources and the need for grid stability. In 2023, the market was valued at approximately USD 3.71 billion and is projected to reach around USD 9.81 billion by 2032, with a compound annual growth rate (CAGR) of 11.41 percent during the forecast period.
As of March 2024, India’s cumulative installed energy storage capacity stood at 219.1 megawatt-hours (MWh), or approximately 111.7 megawatts (MW).
Looking ahead, the stationary BESS market in India is projected to reach approximately 208 gigawatt-hours (GWh) by 2030, presenting a significant opportunity for the country’s domestic manufacturing industry.
The market’s expansion is further supported by India’s ambitious target to deploy 500 gigawatts (GW) of renewable energy capacity by 2030, having already achieved 200 GW.
This commitment underscores the critical role of BESS in managing peak demand and integrating intermittent power sources like solar and wind, thereby enhancing grid reliability and resilience.
In summary, India’s BESS market is poised for substantial growth, driven by renewable energy integration, supportive government policies, and advancements in energy storage technologies.
Why Battery Energy Storage Systems (BESS) Technology is Important for India?
Battery Energy Storage Systems (BESS) are crucial for India due to the country’s growing energy demands, renewable energy expansion, and the need for grid stability. Here’s why BESS technology is important for India:
- Integration of Renewable Energy
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- India is rapidly increasing its solar and wind energy capacity, but these sources are intermittent.
- BESS helps store excess energy during peak generation and supplies it when demand is high or generation is low.
- This ensures a stable and reliable power supply, reducing reliance on coal and fossil fuels.
- Grid Stability and Reliability
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- India’s power grid faces challenges such as fluctuations in frequency and voltage.
- BESS can provide grid balancing, frequency regulation, and voltage support, improving overall grid performance.
- Helps in preventing blackouts and power fluctuations.
- Peak Load Management & Demand Response
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- India experiences peak electricity demand during specific hours (especially evenings).
- BESS can discharge stored energy during peak hours, reducing stress on power plants and avoiding the need for expensive peaker plants.
- Reduction in Diesel Generator Dependence
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- Many businesses, industries, and telecom towers in India rely on diesel generators for backup power.
- BESS provides a cleaner and cost-effective alternative, reducing air pollution and operational costs.
- Electrification of Rural & Remote Areas
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- Several parts of India, especially remote and hilly regions, still lack reliable electricity.
- BESS combined with solar microgrids can provide sustainable and continuous power, reducing reliance on expensive grid extensions.
- Electric Vehicle (EV) Charging Infrastructure
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- With India pushing for EV adoption, charging infrastructure needs energy storage to reduce the burden on the grid.
- BESS can support fast-charging stations, allowing energy storage during off-peak hours and supplying it during high-demand periods.
- Energy Cost Optimization for Industries
- Industries can use BESS to store electricity when prices are low (off-peak hours) and use it when prices are high.
- Reduces power purchase costs and enhances energy efficiency.
- Enabling Carbon Neutrality Goals
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- India aims to achieve net-zero emissions by 2070.
- BESS supports the transition to clean energy by reducing dependence on coal-based power plants.
- Promotes decentralized renewable energy adoption for sustainability.
- Disaster Resilience & Backup Power
- During natural disasters like cyclones and floods, power outages are common.
- BESS provides backup power, ensuring continuity in critical services such as hospitals, telecom, and emergency services.
- Government Push & Policy Support
- India is introducing Production-Linked Incentives (PLI) and other subsidies for BESS manufacturing.
- Plans for 4 GWh of grid-scale battery storage and support for domestic battery manufacturing will boost the sector.
Benefits of BESS Technology in India
Battery Energy Storage Systems (BESS) offer multiple benefits for India’s energy sector, especially as the country transitions to renewable energy sources. Here are the main key advantages:
- Grid Stability & Frequency Regulation
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- Helps maintain grid stability by balancing supply and demand fluctuations.
- Supports frequency regulation to avoid power outages.
- Renewable Energy Integration
- Stores excess solar and wind energy for use during peak demand or low generation periods.
- Reduces reliance on fossil fuels, promoting clean energy adoption.
- Peak Load Management & Energy Arbitrage
- Helps manage peak electricity demand, reducing stress on power grids.
- Allows energy arbitrage by storing electricity when prices are low and discharging when prices are high.
- Reducing Diesel Generator Dependence
- Provides a clean alternative to diesel generators for backup power in telecom, commercial, and industrial sectors.
- Reduces air pollution and fuel costs.
- Microgrids & Rural Electrification
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- Enables decentralized energy solutions for remote and off-grid areas.
- Enhances reliability in rural electrification programs.
- EV Charging Infrastructure Support
- Helps in peak shaving and demand management at EV charging stations.
- Supports fast charging without stressing the grid.
- Industrial & Commercial Cost Savings
- Reduces energy costs through peak shaving and load shifting.
- Provides backup power, preventing production losses during outages.
- Reduction in Transmission & Distribution Losses
- Localized energy storage reduces transmission losses over long distances.
- Defers investment in costly grid expansion.
- Energy Security & Import Dependence Reduction
- Decreases reliance on imported fossil fuels by enabling more renewable energy usage.
- Government Push & Policy Support
- Backed by initiatives like the National Energy Storage Mission (NESM) and incentives for battery manufacturing under the PLI scheme.
Conclusion
BESS technology is crucial for India’s energy transition, supporting renewables, reducing costs, and enhancing grid resilience. It is expected to play a vital role in India’s goal of achieving 500 GW of non-fossil fuel capacity by 2030.
BESS is a game-changer for India’s energy transition. It enhances grid stability, enables renewable energy adoption, supports EV infrastructure, and provides energy security. As India moves towards a greener future, BESS will play a vital role in shaping a sustainable and resilient energy ecosystem.