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What is Battery Energy Storage System and How it Works?

What is Battery Energy Storage System and How it Works?

Published on 04 April 2022 .Views 3 .Comments 0

In this article, we will be discussing about what is the battery energy storage system and how does it works. So, let’s start!.

What is Battery Energy Storage Solution:

  • Battery Energy Storage Systems are rechargeable batteries that store energy from solar panels or the electric grid and deliver it to home or company when it is most needed.
  • During daylight, the battery storage system is charged by clean electricity generated by solar or wind energy, then the intelligent battery software uses algorithms to coordinate solar production, usage history, utility rate structures, and weather patterns to optimize when the stored energy is used.
  • Further, the energy is discharged from the battery storage system during times of high usage, reducing, or eliminating costly demand charges.

Opportunities for Battery Energy Storage Systems:

  • The India battery energy storage systems market is expected to rise at a CAGR of approximately 10.5% during the forecast period of 2022-2027.
  • The Indian Battery Energy Storage Systems market is propelled by mainly 2 drivers, the declining cost of energy storage technologies, and the feature of providing grid flexibility.
  • The Lithium-ion battery type is expected to dominate the market during the forecast period due to its favorable chemistry and the low average cost for energy storage.
  • The culminating growth of renewable energy projects in the country is the biggest opportunity for battery energy storage systems in India. India has set a target to reach around 500 GW of renewable capacity by 2030.
  • The government initiatives to promote energy storage deployment in India are likely to steer the market up to the great extent.

Roadmap for Energy Storage System in India between 2019-2032:

  • The India Smart Grid Forum (ISGF) spearheaded the effort to develop an Energy Storage System Roadmap for India for the years 2019 to 2032 (till the 15th Five Year Plan Period).
  • The primary goal for this roadmap will be estimating the ESS requirements for grid support for the integration of renewable energy into the grid- both at the extra high voltage transmission grids where large solar and wind farms are connected and at medium voltage distribution grids where rooftop solar panels and other renewable energy sources are connected.
  • ISFG collaborated with India Energy Storage Alliance (IESA) on this major initiative, which was funded by the MacArthur Foundation in the United States.
  • The following are the main project outcomes:

i) Energy Storage Roadmap for India for 2019-2022, 2022-2027, and 2027-2032.

ii) Energy Storage India Tool (ESIT), a tool for conducting a cost-benefit analysis of different ESS technologies for different applications.

iii) Guidelines for assessing the hosting capacity of rooftop solar PV (RTPV) on low voltage distribution lines.

Key Areas for Energy Storage Applications:

  • Integrating Renewable Energy with transmission grids and distribution grids.
  • Setting up rural microgrids with diversified loads or stand-alone systems.
  • Developing storage components for electric mobility plans.

Energy Storage Market:

  • The market for energy storage can be broadly categorized into 3 parts: Grid Level Market Behind the Meter, and Railways.
  • In the Grid-level market, the applications of battery storage can be in the segment of Wind, Solar, Ancillary Services, Distribution Utility ESS Integration, and Transmission Deferral.
  • Moving on to the Behind-the-meter category, here the applications can be sub-divided into 2 parts: Electrical and Thermal wherein the applications in the Electrical segment are: Rooftop Solar, Diesel replacement, Inverter Back-up, UPS Back-up, Telecom, and Rural Electrification. Rural Electrification includes Street Lights, Solar Home Lighting Systems, and Micro & Mini-Grids.

Energy Storage Estimations for MV/LV (MWh):

Energy Storage Estimations for MV/LV (MWh)

Energy Storage Estimations for MV/LV (MWh)

  • India is committed to reducing emission intensity up to 33%-35% from the 2005 level by 2030 and set the target of 40% non-fossil fuel-based electricity generation in the energy mix.
  • This requires radical measures to scale up the share of renewable energy (RE) besides the ongoing program of 175 GW RE by 2022.
  • The new targets for RE by 2030 could be in the order of 350 to 500 GW.

Consolidated Energy Storage Roadmap:

Consolidated Energy Storage Roadmap

Consolidated Energy Storage Roadmap

  • While the total requirements of ESS for grid support is 17 GWh by 2022, that for e-mobility is 40 GWh and the total from all sectors is 178.5 GWh by 2022.
  • Depending upon the overall economic growth and development of infrastructure sectors, this could be certainly above 100 GWh.

Government Initiative:

  • An Indian government scheme to support domestic battery manufacturing received bids totaling 130GWh of proposals, more than double the anticipated 50GWh of capacity the incentives will support.
  • ‘Make in India’ push to promote and support high-level manufacturing industries and also a policy to establish “self-reliant” manufacturing of key technologies like energy storage.
  • Batteries, along with solar PV, had been included in mid-2020 in a group of eight ‘Champion Sectors’ in which the government would be incentivizing domestic manufacture through its Production Linked Incentive scheme.
  • Battery Swapping Technology - The government is considering policies for Battery Swapping Technology. A reason for the same is the constraint of space for charging stations in urban areas. The government will also encourage the private sector to develop business models for ‘Battery as a Service.
  • In July 2021, the Solar Energy Corporation of India (SECI) floated a tender for the development of 2000MWh of standalone energy storage projects. The government entity will enter into a long-term agreement with the selected bidders for about 25 years. This is believed to be the largest energy storage tender floated ever in India.

Players in Energy Storage Landscape:

Key Challenges:

1) Low Mineral Reserves:

  • India does not have reserves of some of the most important Li-Ion components including Lithium, Cobalt, Nickel, nor for that matter of the copper used in conductors, cables, and busbars.

2) Early Stage battery manufacturing industry:

  • India has no major producers of EV batteries at present and lacks state-of-the-art facilities of both sufficient capacity and capability.

3) Lack of coordination among st