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Energy Storage
Need & Relevance
under Climate Change mitigation efforts for India
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Rajsekhar Budhavarapu(Head – Wind Business & CTO- Renewable Investments)
IL&FS Energy Development Co. Ltd
June 18, 2015; India Habitat Center, Delhi
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• IEA’s report in 2014 titled ‘Energy Technology Perspectives of a 2 C Scenario’ (IEA ETP 2DS), concluded that Energy ⁰Storage technology could give an 80% chance of limiting average global temperature increase to 2°C by 2050
Energy Storage as the leading Option for De-carbonizing the Energy Sector
• IEA ETP 2DS assessment by 2050 under 3 scenarios
– Current Status -2011
– 2DS scenario: Cost of ES technology providing storage in 2050 would be equal to lowest-cost technology i.e. pumped hydro storage. Estimates that
• $549 bn investment at a CAPEX of $1500/kW
– Breakthrough’ scenario : Aggressive reductions in specific energy (per kWh) and power capacity (per kW) storage costs. Estimates that
• $750 bn investment at a CAPEX of $1200/kW
– Electric vehicle (EV) scenario : Charging strategies for offsetting peak demand are widely employed & the need for additional large-scale storage is reduced. Estimates that
• $380 bn investment at a CAPEX of $1500/kW
Requirement in India by 2050 at ~75 GW under 2 DS Scenario & ~140 GW under Breakthrough Scenario
Source-: Technology Road-map – Energy Storage; IEA; 2014 2
Share of electricity generated from RE (%) by region in the 2DS
Region wise Energy storage capacity by 2050 in 3 scenarios from status on 2011
Status in 2011
2 DS
Breakthrough
EV
Relevance for Energy Storage in India…RE TARGETS ?
• GoI has envisaged a target of 100 GW Solar PV & 60 GW Wind based variable generation capacity by 2022
– Wind & Solar PV (RE) generation mix increases from ~ 5% now to 15-16% by 2022 (on an annual basis)
• During Windy months, RE % mix is already in excess of 20% in states like Rajasthan, Gujarat, Karnataka &Tamil Nadu
– NREL study on western grid indicates that RE mix % > 20% can potentially creates grid stability issues^
*Estimated based on 18th EPS and Wind and Solar PV targets mentioned in Union Budget ’15^ Western wind and solar integration study; NREL; May 2010
• RE potential states like Rajasthan & Andhra Pradesh would have even higher RE mix (well before 2022 & more than National level)
Wind + Solar Mix in 2019
Rajasthan Andhra Pradesh
MW Capacity#
PLF (%)
MU Generation
MW Capacity# PLF (%)
MU Generation
Wind 5,538 23% 11,158 4,795 25% 10,501
Solar 8,226 18% 12,971 5,127 17% 7,635
Total Energy Requirement && 89,792 90,214
Wind and Solar MIX (Annual basis) 26.8% 20.1%
&& CEA 18th EPS ; # 24x7 power to all initiative signed between MoP & state Govt.
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IMPACT of high RE % mix in Indian grid• Indian grid operators would face huge challenges due to
frequent ramping up/down of generation need• May lead to disturbance in the grid operation • Present grid operators, similar challenges as in California
(the Duck Curve syndrome)
AS• No amount of Wind/Solar forecasting can help ease this
situation (as in Denmark/Germany), for India will be power deficit country (having no reserves) and also will not have a liquid Energy market (allowing flexible market instruments for settlement) by 2022
2010 Ramping needs will be amplified even moreFor India, situation could be far more pronounced…it could be a Giraffe curve
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RaAnticipated Load Generation Mismatch in Andhra Pradesh in 2019 Based on extrapolated data on simple assumptions – For illustration purposes
Ramping down of 3 GW of capacity needed in 3 hrs (8 am-11 am) to
accommodate solar gen.
Ramping up of 3 GW of capacity needed in 2 hrs (3 pm- 5pm) to
offset solar gen.
Ramping down of 3.3 GW of capacity needed in 5 hrs (8 am-
1pm) to accommodate solar gen.
Ramping up of 3.3 GW of capacity needed in 4 hrs (2 pm-
6 pm) to offset solar gen.
GoAP has planned to add ~ 4 GW of Wind and ~ 5GW of Solar PV by 2019
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Such high ramp needs can only be set-off with Energy Storage
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Energy Storage provides various monetizable benefits for which otherwise Utility/Discom/ consumers would have to incur cost for reliable power & grid stability.
Few of such benefits are
• Ancillary services– Voltage support , Frequency support, Black start support
• Spinning reserve
• Energy generation Time Shift– Marking renewable generation plant as peaking power plant
• Scheduling of variable generation from Wind and Solar PV– Making variable generation dispatchable and reducing Grid Operator’s need for quick balancing power
• Peak demand reduction
• Benefit of T&D network deferment– By deferring need to replace or to upgrade existing T&D equipment
and/or to increase the equipment’s existing service life
• Transmission network congestion relief
• Back-up power– Offsetting costly power diesel generators
• Reliable power in decentralized/local grids
Monetizable Benefits of Energy Storage
Due Regulatory Treatment is needed to evaluate how these benefits could be translated to evolve viable policies for enabling commercial deployment of Energy Storage
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First Estimate for ES potential market in India by 2020
IHS forecasted 40 GW World-wide installation of grid-connected energy storage by 2022, January 2014
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Wind & So-lar PV Inte-gra-tion6000
Ancil-lary Ser-vices1000
Hybrid &
Elec-tric
Vehi-cles
1200
DG Re-placement
17,780
MW
ES Market in India by 2020 (25, 980 MW) Indian Energy Storage market could be segmented as:• Utility Scale involving
– Grid Ancillary Services– T&D deferral or congestion easing
• Distributed bulk generating IPP plants of – Wind & Solar PV
• Distributed consumer load end generation points like– Solar roof top– Off-grid projects – Diesel consumption abatement at DG operating points
Each segment needs different regulatory & market business model after analyzing the
monetizable benefits of Energy Storage
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Needs to be verified by detailed market studies
