Key Messages

The Government of India plans to integrate 175 GW of variable renewables into the grid by 2022. At the same time, India's power consumption is steadily increasing. Hence, to ensure energy security and better utilisation of intermittent renewable generation, energy storage systems at the grid-scale are required. There is a range of grid-scale storage options, which can be incorporated in the Indian power grid.

In this article, the authors analyse the different energy storage systems, their applications in the grid and key policy recommendations on the suitability of energy storage in the grid. The key policy recommendations include the use of energy storage system as a generation, transmission, distribution, and end-user asset. As a generation asset, storage can provide ancillary and bulk energy services along with power quality and grid stability. Careful sizing and siting of storage in the transmission grid can relieve transmission congestion and enable upgrade deferral. Use of storage in distribution will improve power quality, reliability, and provide financial benefits through energy arbitrage. Facilitating the use of short-, medium-, and long-term storages will support the grid completely. The main barrier in having large-scale deployment of storages is its cost. Hence, it is important to restructure the market and regulatory framework to incentivise storage-specific projects.