The Central Electricity Authority (CEA) has issued an advisory to all renewable energy implementing agencies and State utilities to include a minimum of two-hour co-located energy storage systems in future solar tenders. The purpose of this requirement is to address intermittency issues and provide critical support during peak demand periods. The CEA also emphasizes the need for a compliance mechanism to be integrated into bid documents.
This move is essential to align energy storage capacity with the increasing renewable energy installed capacity in the country. The CEA projects that to integrate 364 GW of solar and 121 GW of wind capacities by 2030-31, India would need 74 GW/411 GWhr of storage capacity, which includes both battery and pumped hydro storage systems. However, as of December-end 2024, India only had 4.86 GW of storage capacity, with only 0.11 GW being battery-based.
The advisory also urges distribution licensees to consider managing a two-hour storage system with rooftop solar plants. This proactive approach aims to enhance the integration of renewable energy sources into the grid while improving overall system reliability.
In other news, the Ministry of Power reports a significant reduction in aggregate technical and commercial (AT&C) losses during electricity transmission, dropping from 21.9 per cent in 2020-21 to 15.4 per cent in 2022-23. This improvement is attributed to the implementation of the ₹3.03 lakh crore Revamped Distribution Sector Scheme (RDSS), aimed at reducing AT&C losses to 12-15 per cent. Various infrastructure projects, including the replacement of conductors and the installation of smart meters, have been sanctioned under the scheme to further reduce losses.
Additionally, NLC India Ltd has secured a contract from SJVN to supply power from a 200 MW wind farm that it will construct. The company won the contract in an auction by quoting a competitive price of ₹3.74 per kWhr. NLC India Ltd, known for its lignite mining and power generation activities, aims to expand its renewable energy portfolio to 10 GW by 2030.
Overall, these developments highlight the ongoing efforts in India to enhance renewable energy integration, improve grid efficiency, and expand the country’s clean energy capacity.