Context: Energy storage technologies, such as Battery Energy Storage Systems (BESS) offer a crucial solution to mitigate the variability of renewable energy while enhancing grid stability. Declining costs and technological advancements lead to the accelerating expansion of BESS.
Relevance of the Topic: Prelims: Key facts related to battery energy storage system (BESS).
India’s first Battery Energy Storage System- Key Highlights
- India’s first commercial utility-scale BESS (an inverter that can provide electricity to a grid) from renewable energy is operational from April 2025.
- Capacity: 20 MW (megawatt)/40 MWh (megawatt hour) cluster of batteries.
- It is capable of providing four hours of power every day (two hours each during the day and at night).
- The electricity used to charge the system’s batteries will come from renewable power purchase agreements.
- Location: South Delhi's Kilokri village.
- Initiative of: BSES Rajdhani (joint venture between the Reliance Group and the Delhi government)
- Utility: Enable 24/7 reliable power in the area for over 12,000 low-income consumers.
What is a Battery Energy Storage System?
- BESS are advanced systems that use rechargeable batteries to store energy generated from different sources, generally renewable sources like sun and wind, and release it to the grid when needed.
- BESS are intelligent systems that use algorithms and software to coordinate with the electricity grid and decide whether to store or release energy.
- Commonly used batteries in BESS: Lithium-ion batteries due to their high energy density, long life span and declining costs.
- Components of BESS:
- Batteries (lithium-ion, lead-acid, flow-batteries etc.)
- Inverters to convert stored DC to AC power for the grid and vice versa.
- Battery Management System (BMS) to monitor battery health and performance.
- Thermal Management Systems to regulate the temperature of batteries.
- Utility of BESS:
- Store surplus energy.
- Reliable source of backup power.
- Enhance grid stability.
- Enhance integration of renewable energy into the electricity grid.
- Clean, reliable and affordable electricity to citizens.
- Limitations of BESS:
- High initial capital cost for installing BESS.
- Limited number of battery charge-discharge cycles, eventually needs replacement.
- Energy loss during charge-discharge cycles eventually reduces efficiency of the batteries.
- Environmental challenges due to mining for critical minerals used in batteries and disposal of batteries.
Development of 4 GWh BESS:
- India has set a target of 500 GW of installed power capacity from non-conventional fuels by 2030. As of January 2025, the country had already achieved 217.62 GW. To achieve full results, BESS deployment must be accelerated.
- India's total BESS capacity reached 219 MW as of March 2024. The government has committed to installing 47 GW of BESS by 2032 to enable increased renewable deployment and its integration with the grid.
- Significance:
- BESS capacity of 4GWh is expected to result in an annual reduction of approximately 1.3 million metric tons (MMT) of carbon emissions, considering charging of BESS with Renewable Energy.
Government Initiatives in this regard
1. Viability gap funding:
- In September 2023, the Central Government approved a scheme to create BESS capacity of 4GWh by 2030-31.
- Viability gap funding to the developers up to 40% of capital cost for BESS is provided by the Central Government.
- Total outlay: ₹3,760 crore.
- The funding will be offered over three years from 2023-24 to 2025-26.
2. PLI Scheme:
- The Central Government has also announced a ₹18,100 crore production-linked incentive (PLI) scheme for advanced cell chemistry battery manufacturing.