In a first, India is working on setting up a standalone renewable battery power bank and is predicting a Rs 2,000 crore investment in order to make green energy available for grid operators and discoms, especially in times when demand soars. However, a rise in lithium (a metal used for making batteries) prices and supply chain challenges due to the ongoing Russia-Ukraine war can impact the response of the industry.
A statement released by the renewable energy ministry on Saturday cited a tender floated by SECI, the government body that implements nationwide solar and wind energy plants. The tender revealed that the project is set to have a storage capacity that could supply 500MW for two hours, or 1,000MWh (mega watt/hour).
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To manage peak demand, discoms will be able to hire storage capacity, which will be charged using renewable energy. The first-of-its-kind project will be set up near the Fatehgarh-III substation of the interstate transmission system in Rajasthan. It will be set up on a build-own-operate basis. The developer will be in charge of securing connectivity and important permissions.
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The central transmission utility will provide land on a right-to-use basis.
The developer is supposed to make storage capacity available for two operational cycles or two complete charge-discharge cycles a day.
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According to the statement by the ministry, the project’s key objective is to offer substantial support to set up a market in the energy storage field.
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At present, India is viewed as a low-priority market by battery makers from across the world, who currently have all eyes on the storage-based renewable energy projects of Europe and the United States.