TAG: GS-3: SCIENCE AND TECHNOLOGY
THE CONTEXT:
In 2024, India is targeting to have half of its electric power capacity come from renewables by 2030; the resilience and stability of its power grid have never been more critical. Renewables, while essential for a sustainable future, come with their own set of challenges.
EXPLANATION:
What is battery storage?
- Battery storage technologies are essential to speeding up the replacement of fossil fuels with renewable energy. Battery storage systems will play an increasingly pivotal role between green energy supplies and responding to electricity demands.
- Battery storage, or battery energy storage systems (BESS), are devices that enable energy from renewables, like solar and wind, to be stored and then released when the power is needed most.
- Lithium-ion batteries, which are used in mobile phones and electric cars, are currently the dominant storage technology for large scale plants to help electricity grids ensure a reliable supply of renewable energy. We’ve begun deploying this technology with heavier equipment, working with Viridi Parente – a company that makes battery storage systems for industrial, commercial and residential buildings.
Why is battery storage important and what are its benefits?
- Battery storage technology has a key part to play in ensuring homes and businesses can be powered by green energy, even when the sun isn’t shining, or the wind has stopped blowing.
- For example, the UK has the largest installed capacity of offshore wind in the world, but the ability to capture this energy and purposefully deploy it can increase the value of this clean energy; by increasing production and potentially reducing costs.
- Everyday engineers at National Grid and electricity grids worldwide must match supply with demand. Managing these peaks and troughs becomes more challenging when the target is to achieve net zero carbon production. Fossil-fuel fired plants have traditionally been used to manage these peaks and troughs, but battery energy storage facilities can replace a portion of these so-called peaking power generators over time.
- The UK government estimates technologies like battery storage systems – supporting the integration of more low-carbon power, heat and transport technologies – could save the UK energy system up to £40 billion ($48 billion) by 2050, ultimately reducing people’s energy bills.
- Prescott Hartshorne, a Director at National Grid Ventures in the US, says: “Storage enables further renewable generation, both from an operational and reliability perspective. It’s also a key piece of our utility customers’ ongoing evolution and transition to renewables.”
How exactly does a battery storage system work?
- Battery energy storage systems are considerably more advanced than the batteries you keep in your kitchen drawer or insert in your children’s toys. A battery storage system can be charged by electricity generated from renewable energy, like wind and solar power.
- Intelligent battery software uses algorithms to coordinate energy production and computerised control systems are used to decide when to store energy or to release it to the grid. Energy is released from the battery storage system during times of peak demand, keeping costs down and electricity flowing.
- This article is concerned with large-scale battery storage systems, but domestic energy storage systems work on the same principles.
What is a Battery energy storage system (BESS) ?
- BESS are smart systems. They use algorithms to interact with the grid and make decisions regarding storing and releasing of surplus energy.
- these systems primarily utilize lithium-ion batteries due to their characteristics like, high energy density, decreasing costs, and extended lifespan.
How does a battery energy storage system work?
- Battery energy storage systems (BESS) preserve energy generated from sustainable sources like sunlight and wind. It balances the supply and demand of renewable energy by releasing it into the grid when required.
Why is BESS critical for a global green switch?
- Renewable energy sources have an intermittent generation pattern. It is because solar energy is available during day and heavy wind is also a seasonal phenomenon. It can cause abrupt surges or declines in power generation, leading to power outages.
- It forces many utility companies to rely on fossil fuel-based power plants. BESS address this issue by enhancing grid stability.
- Consequently, they offer the potential to decrease dependence on fossil fuels.
What is India’s current position in energy storage?
- Current capacity- Currently, India has an energy storage capacity of only 37 megawatt-hours (MWh).
- Requirement- To achieve India’s ambitious renewable energy goal of 500 gigawatts by 2030, the country will require battery energy storage systems with a combined capacity exceeding 200 gigawatt-hours (GWh).
- Projection for future- According to projections by the International Energy Agency, India’s storage capacity is expected to reach 200 GWh by 2040. It will make it the largest in the world.
What’s the plan of India to scale up storage?
- Recently, the government approved a program aimed at establishing a battery energy storage system (BESS) capacity of 4 gigawatt-hours (GWh) by the year 2030-31.
- The scheme provides viability gap funding to developers, amounting to ₹3,760 crore. This funding, limited to 40% of the project’s cost, will be disbursed over a three-year period spanning from 2023-24 to 2025-26.
- The government has introduced a production-linked incentive scheme worth ₹18,100 crore for the manufacturing of advanced cell chemistry batteries. This initiative is essential for achieving self-sufficiency in the production of lithium-ion batteries.
- What’s happening on this front globally?
- According to McKinsey, the investment in battery energy storage systems (BESS) reached $5 billion in 2022. It is three times the amount invested in 2021.
- Global BESS market is currently valued at $55 billion. McKinsey anticipates that it will expand to reach $150 billion by 2030.
- The cost of lithium-ion battery systems is projected to decrease from the current $151 per kilowatt-hour to $59/KWh by 2030
- Experts predict that the annual installation of BESS will increase tenfold between 2022 and 2030. It will exceed 400 gigawatt-hours (GWh) annually by the end of this decade.
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