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The need for energy storage stems from the fact that the power grid faces increasing instability. This is caused majorly by two reasons. Firstly, the increasing volatility on the supply side due to intermittent nature of renewables. https://www.sterlitepower.com/blog/energy-storage-crucial-indiau2019s-clean-energy-goals<br>
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Energy Storage is Crucial to India’s Clean Energy Goals • Utility-scale battery storage systems are being deployed at a scale faster than most power sector stakeholders realize. • The need for energy storage stems from the fact that the power grid faces increasing instability. This is caused majorly by two reasons. Firstly, the increasing volatility on the supply side due to intermittent nature of renewables; and secondly by the rising unpredictability on the demand side as evidenced by high Deviation Settlement Mechanism (DSM) cost borne by distribution companies.
There are multiple ways to flex generation for addressing this problem of volatility, but none of these approaches can address it alone. Flexing hydro generation should be the first line of defense but has its limitations in India. It is a limited resource; there are agricultural and political constraints on dispatch and creating appropriate incentivization structure across states remains a hurdle.
Flexibility requirements through Battery Energy Storage and carbon footprint reduction: • In other parts of the world, gas power plants are used as flex resources. However, their impact in India is limited owing to the shortage of fuel. This has led to 15GW of gas plants being completely stranded, while another 25GW operate at less than one-fifth of their capacity. • Flexibilization of existing coal thermal plants is most commonly pointed out as the approach to carry the lion’s share of the burden of RE integration by several studies conducted in India. However, few of these studies dig deeper into the true cost and capability of coal plants to flex to integrate renewables.
While we have a sense of the increased cost of flexing coal, little attention is paid to the environmental cost. This is significant, as coal plant emissions, already the worst of all generators, worsen further when you reduce the PLF by flexing. It would be ironic indeed if we end up increasing overall emissions in order to integrate a larger share of clean, renewable resources. German coal plants are often advertised as examples of coal-flexing capability, but the German coal lobby’s emphasis on retaining coal by flexing it, is driving Germany to a 25% shortfall against its 2020 emissions target despite huge investments to increase in its renewable capacity.
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