ROLE OF BESS IN SHAPING INDIA’S ENERGY TRANSITION

THE CONTEXT: India has pledged 500 GW of non-fossil electricity by 2030 and net-zero by 2070; yet renewable power is intrinsically variable. The National Electricity Plan-2023, therefore, earmarks 47 GW / 236 GWh of utility BESS by 2032 to firm solar-wind output.

EXPLANATION OF KEY TECHNICAL TERMS:

    • Battery Energy Storage System (BESS): grid-connected ensemble of batteries, power-conversion equipment and control software that stores electricity chemically for later dispatch.
    • Viability Gap Funding (VGF): capital grant bridging the gap between project cost and bankable price discovered through competitive bidding.
    • Round-trip efficiency: ratio of energy discharged to energy charged, reflecting conversion and thermal losses.
    • Lithium Iron Phosphate: safer Li-ion chemistry with high thermal stability used in Delhi BESS project.

BACKGROUND & THEORETICAL FRAMEWORK:

    • Energy-Trilemma (4 A’s): availability, accessibility, affordability, acceptability – now adds adaptability to climate shocks.
    • Flexibility ladder: demand response → pumped storage → battery storage → gas peakers. Batteries score highest on ramp-rate and siting flexibility (response <1 s, modular MW-scale).
    • Total-Cost-of-Ownership (TCO) for Li-ion BESS has fallen ~90 % since 2010; IRENA 2024 pegs median at USD 150 kWh-1 (LCOS ≈ 0.06 $ kWh-1 for 10-yr, 2-cycle-day-1 duty).

TECHNICAL DETAILS & SPECIFICATIONS:

ParameterUtility BESS normRelevance
Power rating10 MW – 1 GWDefines grid-service stack (frequency, peak-shaving)
Energy rating1-4 h typical; long-duration ≥ 8 hDetermines the arbitrage window
Round-trip efficiency85-92 % (Li-ion), 70-80 % (Na-S)Drives LCOS
Cycle life≥ 7,000 (LiFePO₄)CapEx amortisation
Safety classUL 9540A / BIS 17387Regulatory compliance

CURRENT SCENARIO IN INDIA

Installed: 217.6 GW renewables. Operational BESS: ~530 MWh utility-scale, led by 20 MW / 40 MWh Kilokari-Delhi project: India’s first commercially approved, delivered in 11 months.

PIPELINE:

    • Rajnandgaon, Chhattisgarh: 40 MW / 120 MWh SECI-World Bank solar-plus-BESS (inaug. Feb 2024).
    • EnerGrid USD 300 mn platform (IndiGrid-BII-Norfund) to aggregate greenfield BESS & transmission assets.

POLICY & REGULATORY FRAMEWORK:

    • National Framework for Promoting ESS (MoP, Sept 2023): defines BESS as quick-response resource eligible for ancillary markets.
    • Viability Gap Funding (VGF) Scheme: ₹ 3,760 crore to subsidise 4 GWh of BESS; guidelines 15 Mar 2024.
    • IST Transmission-charge waiver for BESS commissioned before June 2025.
    • Advanced Chemistry Cell (ACC): PLI (₹ 18,100 crore, 50 GWh) for domestic gigafactories.
    • Critical Minerals Strategy 2023: mandates JV of KABIL for overseas lithium, cobalt assets.

DRIVERS:

    • Cost-parity: BESS + solar (₹ 6-7 kWh-1 peak) already undercuts new gas peakers (₹ 9 kWh-1).
    • Grid-congestion relief: Discom-sited BESS defers sub-transmission capex (Delhi pilot saved ~₹ 110 crore).
    • Energy-security: reduces ~23 MT CO₂-eq annually at 47 GW scale (CEA estimate).
    • Job-creation: gigafactories + recycling may create 1.2 lakh skilled jobs by 2030 (NITI/RMI study).

GLOBAL PERSPECTIVE & BENCHMARKS:

JurisdictionFlagship projectSizeKey takeaway
AustraliaHornsdale Power Reserve150 MW/194 MWhSaved consumers AUD 150 mn in 2 yrs; showed Fast Frequency Response value.
ChinaNational BESS fleet74 GW / 168 GWh (2024)Doubling in one year via central auction plus grid firming mandate.
United StatesInflation Reduction Act (2022)30 % ITC + bonusStand-alone storage became investment-grade asset class.

THE ISSUES:

    • Regulatory opacity: Ancillary-service prices capped below cost-recovery; BESPA contracts still ad-hoc.
    • Revenue-stack uncertainty: No firm market for capacity, voltage support, or black-start.
    • Access to critical minerals: 85 % of lithium processed in China: geopolitical risk.
    • Financing bottlenecks: High upfront (₹ 5-6 crore MW-1) deters discoms; only 12 % of renewables loans flow to storage.
    • Technology lock-in & recycling: Absence of producer-responsibility norms; end-of-life Li-ion waste may hit 1.5 lakh t yr-1 by 2035.
    • Grid-readiness: SCADA, EMS upgrades lag; only 35 % substations have real-time visibility for BESS dispatch (CEA audit 2024).
    • State-level policy asymmetry: Few states have TOU tariffs; Tamil Nadu & Gujarat ahead, others silent.

THE WAY FORWARD:

    • Clear Market Code: Finalise Central Electricity Regulatory Commission’s Ancillary Services-2.0 to remunerate frequency, inertia, and black-start; guarantee minimum capacity payments for ≥ 8 years.
    • BESS Purchase Obligation (BPO): Mandate discoms to procure storage equivalent to 5 % of peak demand by 2028, rising to 15 % by 2035, analogous to Renewable Purchase Obligation trajectory.
    • Green Finance De-risking: Channel ₹ 30,000 crore from Sovereign Green Bonds into blended-finance facility, provide first-loss guarantee covering 15 % project debt.
    • Grid Modernisation Fund: Ring-fence AT&C savings for advanced metering, flexible transformers, and AI-driven dispatch tools that unlock stacked BESS value streams.
    • Domestic Supply-Chain Push: Expand ACC-PLI to 100 GWh, include sodium-ion and zinc-air chemistries; align with Critical Minerals JV for cathode-grade lithium.
    • Second-Life & Recycling Mandate: Notify E-Waste (Battery) Rules 2025 with Extended Producer Responsibility, target 90 % Li-ion recovery by 2030; spur a ₹ 10,000 crore circular-economy market.
    • Time-of-Day Tariffs Nationwide: Make ToD metering compulsory above 100 kW from 2026; dynamic prices unlock arbitrage revenue for behind-the-meter BESS.
    • R&D & Innovation Clusters: Establish three “Battery Valley” clusters (Gujarat, Tamil Nadu, Telangana) with INR 500 crore annual competitive grants for solid-state and sodium-ion prototypes.
    • Skill & Safety Protocols: Standardise BIS courses for BESS installation; integrate IEC 62933 safety tests into PowerGrid’s inspection regime to avert thermal-runaway incidents.
    • International Alliances: Use ISA’s Global Storage Alliance and COP28 BESS Consortium to access concessional financing and harmonised standards, ensuring technology neutrality.

THE CONCLUSION:

BESS offers India a dispatchable, decentralised and decarbonised pathway to square the renewable intermittency circle. Targeted regulatory clarity, concessional finance, indigenous manufacturing and a robust circular-economy framework can together transform ambitious targets into bankable, on-ground megawatt-hours—moving India firmly towards Sustainable Development Goal-7 and a climate-resilient future.

UPSC PAST YEAR QUESTION:

Q. Smart grids and energy storage are indispensable for making renewable power mainstream. Elucidate. 2016

MAINS PRACTICE QUESTION:

Q. Battery Energy Storage Systems (BESS) are being hailed as the missing piece in India’s quest for a resilient power sector. Analyse their role in addressing grid flexibility and energy security.

SOURCE:

https://www.thehindu.com/opinion/op-ed/role-of-bess-in-shaping-indias-energy-transition/article69656518.ece

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