India requires over Rs 4.47 lakh crore for energy storage expansion by 2032: CEA, ET EnergyWorld

New Delhi: India‘s pursuit of renewable energy goals comes with a hefty price tag, as the Central Electricity Authority (CEA) projects a need for Rs 4.47 lakh crore (about $60 billion) in investment for energy storage infrastructure by 2032. This estimate exceeds previous forecasts, highlighting the scale of the country’s energy transition.

Previously, the CEA had put forth a more conservative estimate of 28GW/108GWh of energy storage capacity by 2030 to support the 500GW renewable energy goal, which includes 450GW from wind and solar photovoltaic (PV) sources. This estimate was dwarfed by the India Energy Storage Alliance‘s (IESA) more ambitious projection of ‘160GWh or more’ and Niti Aayog‘s estimate of 182.9GWh by 2030.

However, the CEA’s latest modeling, revealed in the Ministry of Power’s framework document, suggests a seismic shift in energy storage requirements. The upcoming National Electricity Plan (NEP) for 2023, which incorporates various energy storage technologies, including battery storage and pumped hydro energy storage (PHES), predicts a substantial increase in demand.

Commencing from the fiscal year 2026-2027, the CEA’s modeling paints a clear picture of a substantial upsurge in India’s energy storage demands. The projections reveal a sharp increase in energy storage requirements over the course of several years. In this timeframe, India is estimated to require significant energy storage capacities, including Battery Storage Output reaching 8.68 GW (2026-2027), 41.65 GW (2029-2030), and peaking at 47.24 GW by 2031-2032.

In parallel, the battery storage capacity is anticipated to expand significantly, with estimates of 34.72 GWh (2026-2027), 208.25 GWh (2029-2030), and an impressive 236.22 GWh (2031-2032). Moreover, these projections encompass the revival of pumped hydro energy storage, with pumped hydro output projected to be 7.45 GW (2026-2027), 18.98 GW (2029-2030), and 26.69 GW (2031-2032).

Correspondingly, the pumped hydro capacity is expected to grow substantially, with estimates of 47.6 GWh (2026-2027), 128.15 GWh (2029-2030), and 175.18 GWh (2031-2032).

To develop this extensive storage capacity between 2022-2032, the estimated fund requirements for Pumped Storage Projects (PSP) and Battery Energy Storage Systems (BESS) are staggering.

For 2022-27, it’s estimated that Rs 54,203 crore will be required for PSP and Rs 56,647 crore for BESS. In the subsequent period from 2027-2032, a colossal Rs 75,240 crore will be needed for PSP, and an astounding Rs 2,92,637 crore for BESS.

CEA has projected that by the year 2047, India’s energy storage requirements are expected to soar to 320GW, with 90GW from PSP and 230GW from BESS, along with a storage capacity of 2,380GWh, consisting of 540GWh from PSP and a massive 1,840GWh from BESS. This expansion is in line with the nation’s commitment to achieving net-zero emissions by 2070, necessitating a substantial increase in renewable energy capacity and the corresponding energy storage infrastructure.

The magnitude of these funding requirements highlights the immense scale of India’s renewable energy ambitions and the critical role that energy storage will play in realizing these goals. As the nation strives to reduce its carbon footprint and transition to a greener energy future, substantial investments and a comprehensive strategy for energy storage are essential to ensure the stability and reliability of the energy grid.

  • Published On Sep 8, 2023 at 04:45 PM IST

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