The Ministry of Power (MoP) on February 18, 2025, issued the notification regarding the Advisory on co-locating Energy Storage Systems with Solar Power Projects to enhance grip stability and cost efficiency.
The following has been stated namely: -
• All Renewable Energy Implementing Agencies (REIAs) and State utilities are advised to incorporate a minimum of 2-hour co-located Energy Storage Systems (ESS), equivalent to 10% of the installed solar project capacity, in future solar tenders.
• Distribution licensees may also consider mandating 2-hour storage with roof top solar plants as well.
• Approximately 14 GW/28 GWh of storage can be installed by 2030. The recent decrease in battery prices may also help reduce the power purchase costs during evening hours when solar generation is unavailable and energy rates in the exchange are high.
• The storage system can be run either in single-cycle operation where it is charged using the co-located solar power and discharged during evening hours, or in double cycle operation, where in addition to solar power, it can also be charged using energy from the grid during low demand hours and discharged during peak hours (especially non solar hours).
• The integration of storage systems with solar power projects would not only support grid stability but also provide long-term economic benefits, such as improving the evening time utilization of transmission lines constructed for evacuating solar power, thereby reducing transmission requirement and charges, improving energy security, and enhancing the overall efficiency of renewable energy systems.
