The Energy Storage Obligation (ESO) in India is a regulatory framework that mandates a gradual increase in the proportion of energy consumed from solar and/or wind sources, incorporating energy storage capabilities. It aims to facilitate a higher deployment of renewable energy by enhancing grid stability and managing the variability of solar and wind energy production.
How does the ESO framework function?
The ESO sets specific yearly targets for the percentage of energy that must be stored and later utilized, starting from 1% in the fiscal year 2023-24 and increasing to 4% by 2029-30. These targets provide a structured pathway for the integration of renewable energy and the implementation of advanced energy storage technologies to ensure a consistent and reliable power supply.
What are the year-wise targets for ESO?
The targets for the Energy Storage Obligation are set as follows:
The incorporation of energy storage within the ESO framework offers multiple advantages, including better management of the seasonality associated with renewable energy sources. By using energy storage systems, excess renewable energy generated during peak periods can be stored and used during periods of low generation, thus enhancing the stability and reliability of the power supply.
How has the Ministry of Power clarified the role of energy storage in the power sector?
In January 2022, the Ministry of Power clarified that energy storage systems (ESS) could be utilized either on a standalone basis or in conjunction with generation, transmission, and distribution. The classification of ESS will depend on its application area, allowing for more flexible and efficient integration into India's power infrastructure.
What impact does the ESO have on utility-scale energy storage requirements?
The Council on Energy, Environment and Water (CEEW) has projected a significant increase in battery demand as a result of the ESO. For example, in the fiscal year 2023-24, the storage requirement is estimated to be around 16 GWh, increasing to 91 GWh by 2029-30. These projections highlight the growing need for large-scale energy storage solutions to meet the ESO targets.
Conclusion
The Energy Storage Obligation creates a compelling incentive for industries and utilities to invest in energy storage solutions. By complying with the ESO, stakeholders are expected to support the growth of renewable energy, drive technological advancements in energy storage, and contribute to India's ambitious energy transition goals. This strategic approach not only aids in managing the variability of renewable energy but also supports the broader objectives of energy security and sustainability.
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