By - King Stubb & Kasiva on September 8, 2023
As it grapples with the global challenge of climate change and seeks to lessen its reliance on fossil fuels, India is undergoing a revolutionary shift towards renewable energy. The government is making remarkable progress towards its ambitious objective of 500 GW of installed electricity capacity from Renewable energy sources by 2030.
The intermittent nature of renewable energy sources such as wind and solar, on the other hand, offers a huge obstacle to a reliable and stable energy supply. India is turning to energy storage technology to solve these problems and realize the full potential of renewable energy. Integrating energy storage systems (“ESS”) with renewable energy projects, on the other hand, has a complex set of legal and regulatory ramifications.
In recent years, India’s Ministry of Power recognised the enormous potential of energy storage and classed it as a service. This strategic decision is expected to spur investment in the energy storage sector, boosting India’s renewable energy targets even further. For instance, currently India’s overall energy storage industry has increased from 115.94 GW in March 2018 to 172.00 GW in March 2023.
Over the next five years, this expansion is expected to not only revolutionize the energy sector but also to create over 3,00,000 jobs in the renewable energy and storage sectors. Energy storage technologies are gaining popularity in India due to their potential to replace diesel generators. Solar power systems combined with energy storage have the potential to save industrial and commercial consumers up to 5 per unit. These economic and environmental benefits are accelerating the adoption of energy storage technology.
The promise of energy storage is appealing, but it is critical to navigate the legal and regulatory landscape in India to enable a seamless and sustainable integration with renewable energy projects. Here are some of the most important legal consequences and challenges:
As energy storage technologies attempt to integrate smoothly with renewable energy projects in India, they confront several legal and regulatory difficulties. These include:
Despite these hurdles, India’s regulations and rising RTC power demand are expected to encourage investments and technological breakthroughs in the energy storage sector, particularly Battery Energy Storage Systems (“BESS”) across a wide range of industries. While projecting battery cost reductions is difficult, India’s affordability is projected to improve as raw material prices, such as lithium-ion, fall. To promote this expansion, the government can provide critical support in the form of tax breaks and capital subsidies, similar to how it supported the early solar and wind sectors.
Government-backed projects aiming for 51 GW of five-hour BESS by 2030 highlight the need for significant sector expansion, necessitating yearly capacity increases of 6 to 7 GW over the following eight years. Energy storage is critical as India pursues renewable energy targets and reduces emissions. A strong legislative framework is essential for balancing innovation and investment and maintaining energy storage’s critical position in India’s sustainable energy future while keeping up with shifting technology and cost dynamics.
BESS refers to energy storage systems that use batteries to store electricity for later consumption. They are adaptable and important in improving grid stability, regulating peak demand, and incorporating renewable energy sources.
To accomplish this aim, approximately 6 to 7 GW of BESS capacity must be added per year. To encourage innovation and decrease costs, it relies on strong government assistance in the form of exemptions, incentives, and industry collaboration.
A legal framework is required to solve regulatory issues and pave the way for the integration of energy storage technology. It contributes to the balance of innovation and investment, ensuring that energy storage plays a critical part in India’s sustainable energy future.
 https://pib.gov.in/PressReleseDetailm.aspx PRID=1944691#:~:text=Progress%20made%20by%20India%20in%20the%20field%20of%20New%20and%20Renewable%20Energy&text=The%20Union%20Minister%20for%20New,increase%20of%20around%201.48%20times.