Synopsis:
- Given the new renewable purchase obligation (RPO) and energy storage obligations (ESO) norms, there is an increased impetus on capacity augmentation of energy storage systems (ESS). Assuming 4 hours of storage per GW, India requires ~12 GW storage capacity in FY24, which is likely to increase further to ~70 GW by FY30.
- The industry would necessitate ~Rs. 14 lakh crore incremental debt financing for the installed Renewable Energy (RE) capacity to reach 425 GW, pumped storage projects (PSP) capacity of 19 GW and battery-enabled storage solutions (BESS capacity) of 42 GW by 2030
- Levelized cost of storage from PSP remains competitive at Rs. 4.81 per unit as against Rs. 11.64 per unit from BESS
- Assuming a round-the-clock supply of RE, the landed cost from PSP is ~Rs. 4.74 per unit as against Rs. 6.59 per unit from BESS. Significant technological advancements, cost economies and financing stimulus are needed to uplift BESS.
