People likely to be free to set up standalone energy storage systems: R K Singh

Union Minister for Power and New & Renewable Energy R K Singh has indicated that people may be free to set up standalone energy storage systems (ESS) as the government plans de-licensing that under the policy for ESS. The power ministry stated that he interacted with renewable energy developers, industry and various government representatives to discuss the elements of the draft policy on the energy storage system to promote the creation of storage systems on a large scale across the country.

The policy aims at the creation of the technology-agnostic storage system across the value chain of the electricity sector generation, transmission and distribution levels. The ministry said the states welcomed the policy initiative taken by the government for the promotion of storage systems in the country. They also highlighted the efforts being taken on their side to promote pumped storage projects and battery energy storage systems.

Singh said that the energy storage system will be an integral part of the power system under the Electricity Act and that setting up of standalone ESS may be made a delicensed activity. Energy storage systems will benefit generating companies, distribution companies of the states, grid operators and other players in the electricity value chain.

They will facilitate peak shifting, peak shaving, ramp-up/ramp down, and frequency control in the system and enhance the utilisation of the transmission system. ESS is considered essential for a smooth energy transition from coal-based to renewable sources and to a cleaner environment. Highlighting the elements of the proposed policy, he stated that storage will henceforth be part of the renewable purchase obligation (RPO). He also stated that the curtailment of renewable energy will be penalised under the provisions of the Act.