Need to Setup Storage Systems on Wide Scale in India: RK Singh

There’s a need to establish storage systems on a wide scale in the country, said R.K. Singh, Union Minister of Power and New and Renewable Energy.

The Minister said during the interaction with Renewable Energy (RE) developers, industry and various government representatives while discussing the elements of the draft Policy on Energy Storage System (ESS) to promote the creation of storage systems on a large scale across the country.

During the interaction meeting, Singh also said that “ESS shall be an integral part of the power system under the Electricity Act and that setting up of standalone ESS may be made as a delicensed activity”.

While emphasizing Make in India, the Minister galvanized the industry representatives and called for their active participation in establishing storage systems and associated manufacturing industries domestically within the country.

RK Singh also highlighted the elements of the proposed policy and stated that storage will henceforth be a part of the Renewable Purchase Obligation (RPO).

However, the Minister also stated that the curtailment of renewable energy would be penalized under the provisions of the Act.

As per the proposed policy, ESS developer would be granted Inter-State Transmission System (ISTS) connectivity under General Network Access (GNA) allowing them to sell/ purchase power from any part of the country.

Quantum of ESS included with Round-The-Clock (RTC) RE would be counted as RPO for storage, he added.

Also, Renewable Energy Certificates (RECs) may be issued to ESS, Singh said while adding that Discoms/ Obligated entities can set up their own storage or procure storage capacity or lease storage space from public or private ESS developers. Any sale of electricity from storage or sale/ lease of storage space may be through open competitive bidding or Power exchange or through tariff fixed u/s 62.

The policy also proposed that transmission cost for RE shall be waived both at the time of charging the storage as well as at the time of selling the stored RE, as per the Ministry of Power notification.

Meanwhile, the government has requested industry stakeholders to submit any further suggestions within 15 days.