Co-located Solar & BESS To Reduce Power Shortages: Report

Co-located Battery Storage With Solar Can Help India Avoid Electricity Shortages: Report

A latest report from the India Energy Climate Center (IIEC) said that co-located solar and battery energy storage system (BESS) deployment can help India avoid the likely electricity shortages in the years to come. 

The public policy think tank at the University of Berkeley, also stated in its report that due to the rapid electricity demand growth, India is likely to experience significant evening power shortages of around 20 GW to 40 GW by 2027. This is despite the thermal & hydro capacity currently under construction coming online, as planned.

The report highlights that between May 2019 to May 2024, India’s peak electricity demand increased by a staggering 68 GW, from 182 GW (in 2019) to 250 GW (in 2024), representing an annual growth rate of 6.5%. The report states, how increasing electricity demand and prolonged heat wave are peaking India’s electricity demand.

It states, renewable energy generation during evening / night peak hours is uncertain, highlighting the firm capacity needed for grid reliability. By 2027, India’s summer evening peak could increase by 50-80 GW and is likely to go beyond 300 GW.

Simulated hourly system dispatch between May 17 and May 24, 2027. Source: IIEC Report

Highlighting the importance for storage, it states, even if 100 GW of new renewable energy is added, evening peak shortages will still occur by 2027. However, it adds, with 50 GW new solar, co-located with 16 GW/62 GWh of storage (~20% of daily solar gen), shortages could be avoided. 

To avoid shortages, India has to rely on large-scale solar + storage deployment. The IIEC report also said that this is the main option left to avoid power shortages, as they can be deployed much faster than new thermal and hydro assets.

Over the last 2-3 years, battery storage prices have seen a dramatic reduction in India with standalone battery storage capital cost estimated at ~$200/kWh and co-located battery storage capital cost estimated at ~$150/kWh. Co-located battery storage capital cost has already fallen to ~$150/kWh and will likely drop further by ~15-20% by 2030, the report estimates.