Experts Stress Power of Integrating Solar with Energy Storage Systems at REconnect Summit- '24

Renewable energy sources, such as solar and wind, generate power intermittently, making Energy Storage Systems (ESS) crucial for stabilising the electricity supply within green energy infrastructure. ESS helps balance supply and demand, smooth out fluctuations, and ensure a reliable power flow. By storing excess energy during peak production times and releasing it during low production periods, ESS supports grid stability and enhances the overall efficiency of renewable energy systems. This integration not only improves the reliability of green energy but also promotes a more sustainable and resilient energy grid.

With the aim to promote the adoption of ESS, the REconnect Summit-‘24, recently held in New Delhi and organised by Energetica India, focused on this critical topic in a session titled ‘The Power of Integrating Solar and Energy Storage Systems.’

The prominent panellists for the session included Dr. Rashi Gupta, Managing Director, Vision Mechatronics (Moderator),Rajesh Tiwari, Assistant Vice President (AVP), Hero Future Energies Pvt. Ltd., Dheeraj Joshi, Manager ESS, Jinko Solar, Anil Bohara, Head (System Operation,SCADA, and Distribution Automation Projects), BSES Rajdhani Power Ltd., and Virpal Yadav, COO, Sunkind Energy.

Dr. Gupta, moderator for this session, emphasised the importance of innovations in financing models. She noted, “Financing and insurance really need a lot of attention, and there is also a need to improve methodologies to make an impact on the ESS sector.”

Further, Bohara added, “We have a limited fund, and every penny we spend as capital expenditure has to be approved by the regulator. The cost is ultimately passed on to the consumer. So, the first concern of the regulator is that tariffs should not rise. Therefore, we have to plan accordingly. Our capital expenditure is not simply covered by the regulator; it is covered through the tariff. You will see that for many years, tariffs have not risen in Delhi."

Dr. Rashi highlighted that a significant majority of Indians currently use small inverters with lead-acid batteries. She raised a critical question about when people might become aware of and adopt newer technologies at affordable prices. This reflects a broader challenge and opportunity in advancing technology adoption in the renewable energy sector, especially concerning affordability and awareness among consumers.

Answering her query, Tiwari, replied, “The government can support this through subsidies, making the cost more affordable. They should provide subsidies or EMI solutions for solar rooftops with energy storage. For example, in Uttar Pradesh and Madhya Pradesh, the government is promoting solar rooftops with EMI solutions, allowing consumers to pay in installments similar to their electricity bill for systems like 1 kW or 5 kW. This way, after five years, the system belongs to the consumer, who then enjoys free electricity.”

However, to ensure consumer safety, he said, "The government is partnering with channel partners who are listed and accountable. If something goes wrong, the government should support consumers. There are also extended warranty options available. By paying a little extra, consumers can secure their systems for another five years.”

He further emphasised the importance of building trust among consumers, which can be achieved through experience and proper service level agreements (SLAs).

Bohara, further added, “There are successful examples like the IOC's initiatives, these need to be replicated and scaled up for residential consumers. The government and private sector must work together to provide better financial solutions and ensure reliable service and support. By doing so, they can build trust and encourage more consumers to adopt new technologies, ultimately leading to broader adoption and increased benefits for everyone involved.”

“Overall, a comprehensive approach involving subsidies, affordable financing options, and reliable after-sales support is essential to drive mass adoption of new technologies and ensure that consumers are not burdened by costs or concerns about reliability,” he said.

Further, dwelling on the policies, Virpal Yadav, Chief Operating Officer of Solar Business at Sunkind, said, “It is all about awareness. The current policies may have a limitation that requires us to go with the DCR mounting, making the cost go up, and then we are going for the subsidy. So, we have to ensure that the framework of awareness works in parallel to achieve mass adoption of the technology."

Commenting on the regulatory landscape and business in India, Joshi, said, “From the commercial point of view, in the last six months, we have passed 6 GW tenders. Last year, inclusive of PSP, 40 GW were published. And in 2022, 16 GW had been tendered, and only 270 were commissioned. Most of them are cancelled, and some are at the RFP stage.”

“Karnataka Renewable Energy Development Limited (KREDL) in Karnataka has launched a 4.5 MW storage system. They use air cooling for the batteries. Whereas, globally, liquid cooling is used, including in countries like Bangladesh. But KREDL uses air cooling for their projects because of the basic customs duty (BCD). They are importing the cells at 5 percent, and then they are assembling them. As for 20 feet of container, we are still 22 percent BCD. There are reports that it will be slashed to 12 percent, but there is no such government notice as of now,” said Joshi.

Dr. Rashi also urged business leaders to take the lead in implementing new technologies instead of following the tested ones.

Overall, the summit highlighted that integrating ESS with solar is pivotal for sustainable energy infrastructure, requiring collaborative efforts between the government, private sector, and consumers to ensure affordability, reliability, and widespread adoption.