India’s energy storage sector witnessed significant developments in 2022, which included the government issuing guidelines for the use of batteries as part of the generation, transmission, and distribution assets, the results of a performance-linked incentive (PLI) program for manufacturing advanced chemistry cell facilities, and issue of major tenders.

Here are some of the most important developments in the sector:

Policies

To support the country’s 2030 goal of installing 500 GW of non-fossil energy and facilitating the growth of energy storage, the Ministry of Power in March issued guidelines to procure and use battery energy storage systems as part of the generation, transmission, and distribution assets, along with ancillary services. The guidelines are for procuring energy from BESS through competitive bidding from grid-connected projects to be set up on a “Build-Own-Operate” or “Build-Own-Operate-Transfer” basis.

The Ministry of Power released the Energy Storage Obligation (ESO) until the financial year 2029-30. The percentage of the total energy that can be consumed from solar and wind projects with storage was notified. The ESO will be calculated in energy terms as a percentage of the total electricity consumption and treated as fulfilled only when at least 85% of the total energy stored in ESS is procured from renewable energy sources annually.

Reliance New Energy, Ola Electric Mobility, and Rajesh Exports inked an agreement under the Government of India’s production-linked incentive (PLI) program to set up Advanced Chemistry Cell (ACC) facilities in India. The three companies were selected by the Ministry of Heavy Industries under the PLI program to build the ACC units within two years from the date of allotment of the contracts. The selected bidders will deploy a cumulative capacity of 50 GWh, of which Ola received incentives to set up 20 GWh of ACC capacities. Reliance and Rajesh Exports were awarded incentives to deploy 5 GWh of capacity each.

A special purpose vehicle of Jindal Steel Works, JSW Renew Energy Five Limited, won the auction held by the Solar Corporation of India (SECI) to set up 500 MW/1000 MWh standalone BESS projects under build, own, operate, and transfer model. JSW’s SPV won the entire capacity by quoting ₹1.08 million (~$13,566)/MWh per month.

SECI had issued the expression of interest for these projects to be located near Fatehgarh-III substations connected to the interstate transmission system network in Rajasthan.

Greenko Energies bagged the NTPC Renewable Energy’s tender to set up interstate transmission system-connected energy storage systems of 3,000 MWh capacity with a minimum of 500 MW capacity to be installed anywhere across India. Greenko quoted ₹2.79 million (~$33,985)/MW/year and won the total capacity. NTPC Renewable Energy plans to use the energy storage facility to meet its round-the-clock renewable energy needs with a wind-solar profile.

NTPC Renewable Energy has invited bids for the design, engineering, manufacturing, supply, installation, and commissioning of a 250 MW/500 MWh grid-connected standalone BESS  near Fatehgarh-III inter-state transmission system substation in Rajasthan.

SECI has requested proposals for research and development to demonstrate scalability in gravity-based or mechanical ESS, green hydrogen-based ESS, including any other non-electrochemical ESS technology, among pilot clean energy projects. It said that the capacities of the projects must be up to 500 kWh of energy storage capacity, with a suitable solar generation system in place.