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India's ambitious target of 450 GW of renewable capacity by 2030
will require the country to adapt its power system to the
increasing variability of supply and demand, to minimize the risk
of curtailment and secure grid operations. There are important
measures to be considered from both the short-term operations point
of view and the long-term system planning perspective.
India's power system's flexibility requirement is expected to
skyrocket from 30 GW in 2019 to more than 140 GW by 2030. As the
share of renewable energy in total generation grows, the country
will need fast- ramping infrastructure, including flexible
generation and market mechanisms, while considering the economic
viability of these options.
The midterm focus will be on improving the supply-side
flexibility from the conventional sources with coal expected to
play a crucial role. However, increasing coal flexibility may be
cost-competitive in the midterm only when other commercial
flexibility options are limited. In the long -term, India will need
to transition towards flexible resources that are also low carbon,
including energy storage.
Pumped hydro is the most economic energy storage resource in the
short term, but siting and other environmental challenges are
likely to constrain the development of new projects, which will
create opportunities for battery storage. In the short- to medium
term, co-located storage projects with renewables will be a
preferred mode of deployment of batteries to provide a firm supply
of green power and meet demand at peak hours of the day.
As the cost of batteries declines significantly during the next
decade, batteries will become competitive with pumped hydro by
2030. The cost decline will be driven by increasing economies of
scale, a maturing value chain, and increasing competition, and
result in batteries becoming the most economical option for
providing grid management and storage capabilities in the long
term. However, to maximize the value of battery storage in the
Indian market, the country will need to define a clear long-term
energy storage policy.
Ankita Chauhan is a senior renewable analyst on the Gas,
Power, and Energy Futures team at IHS Markit, covering research and
analysis for Indian and South Asian markets.
