Energy storage to lead infrastructure in the next decade

Storage enables utilities to buy or generate cheap power, store it and release it when prices are higher making the system reliable and financially sustainable.

- HC Sharma, Chief- Technical Services, Tata Power-DDL

The installed power capacity of India is higher than peak demand, creating an impression of energy security. But the challenge lies not just in capacity numbers, but in managing when and how this power is available.

For example, the simultaneous growth of solar and wind creates a unique load management issue. Solar generation peaks during the day but disappears in the evening when demand surges. Wind generation, while helpful, is unpredictable. This mismatch makes it difficult to serve the growing night load without dependable backup. Here comes energy storage into play.

Energy storage

India's roadmap estimates a requirement of 411 GWh of storage capacity. At an estimated cost of around ₹1.5 crore per MWh, this translates into a staggering ₹6.15 lakh crore investment. Whether it comes from large-scale battery systems or pumped storage projects (PSPs), this will be one of the biggest infrastructure commitments in the coming decade.

Many utilities face wide variations between peak and minimum demand. For example, one company has a peak demand of 2,481 MW against a minimum of just 600 MW. With renewables exceeding 1,000 MW in its portfolio, managing excess power without storage would be nearly impossible.