Power Minister Interaction With Stakeholders On Draft Policy For Energy Storage Systems

In an important discussion on January 25, the Union Minister of Power and New and Renewable Energy, R.K. Singh interacted with Renewable Energy developers, industry and various government representatives to discuss the elements of the draft Policy on Energy Storage system. The policy aims at the creation of technology-agnostic large storage systems across the value chain of the electricity sector viz. at generation, transmission, and distribution levels.

A subsequent meeting today (January 27) with Principal Secretaries and CMDs of Renewable Energy Rich States viz. Punjab, Rajasthan, Maharashtra, Andhra Pradesh, Karnataka, Telangana, Kerala, Tamil Nadu, Gujarat & Madhya Pradesh followed. The States welcomed the policy initiative taken by the Government of India for promotion of Storage Systems in the country. They also highlighted the efforts being taken on their side to promote pumped storage projects and Battery Energy Storage Systems.

Singh stressed on the need to establish storage systems on a wide scale in the country. He informed that Energy Storage System (ESS) shall be an integral part of the power system under the Electricity Act and that setting up of standalone ESS may be made as a delicensed activity.

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Energy Storage Systems will facilitate Peak shifting, Peak Shaving, Ramp up/ramp down, and Frequency Control in the system and enhance the utilization of the Transmission System. ESS is considered essential for a smooth energy transition from coal-based to renewable sources and to a cleaner environment. Highlighting the elements of the proposed policy, RK Singh stated that storage will henceforth be a part of the Renewable Purchase Obligation (RPO).

He also highlighted that curtailment of renewable energy will be penalized under the provisions of the Act. As per the proposed policy, ESS developers shall be granted Inter-State Transmission System connectivity under General Network Access (GNA) allowing them to sell/ purchase power from any part of the country. Quantum of ESS included with Round-The-Clock (RTC) Renewable Energy shall be counted as Renewable Purchase Obligation (RPO) for storage. Renewable Energy Certificates (RECs) may be issued to ESS. Discoms/ Obligated entities can set up own storage or procure storage capacity or lease storage space from public or private ESS developers. Any sale of electricity from storage or sale/ lease of storage space may be through open competitive bidding or Power exchange or through tariff fixed u/s 62. The policy proposes that transmission cost for RE shall be waived both at the time of charging the storage as well as at the time of selling the stored RE. The participants gave their suggestions.

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The participants were requested to submit any further suggestions within 15 days.

India’s fresh commitment of 500 GW of renewable energy at COP26 has added a level of urgency to moves on the storage front, as large energy storage capacity is considered critical to balance out the impact of higher renewable share on the national grid, as well as ensure RTC supply using renewable energy. Interestingly, the meetings happen at a time when power PSU NTPC has also invited bids for 3000MWh of storage capacity. Other key agencies including SECI have also initiated plans for storage.