The amount of storage capacity and how it is distributed across technologies will be determined by power demand curves, power generating mix, particularly the share of variable renewable output, and storage technology costs, among other factors, according to the report. According to a report by Fitch Ratings, increasing the installation and acceptance of renewable energy capacity, as well as government regulatory backing, would promote the rise of power storage in India. The amount of storage capacity and how it is distributed across technologies will be determined by power demand curves, power generating mix, particularly the share of variable renewable output, and storage technology costs, among other factors, according to the report.
“Successful implementation of recent legislative changes, a stable operating environment that supports long-term cash flow predictability, and a competitive level playing field will be crucial in stimulating investment in power storage,” the paper stated. It further stated that power storage demand in India will grow at a high rate in order to moderate the increasing instability on both the power supply and demand sides, as a result of rising renewable energy.
The demand for energy storage is expected to increase. In India’s power market, both supply and demand-side instability augur well for growing storage needs. Higher fluctuation in intra-day and seasonal power demands, as well as increased variability from renewable sources, both lead to the need for major investments in power storage. Increasing renewable energy to meet future power load growth will necessitate the use of storage to keep renewable generation stable.
India’s expanding electricity generation would necessitate investments in power storage since the country seeks to double intrinsically volatile renewable generation by 2030 as part of its Conference of the Parties (COP26) climate change commitments. The majority of storage investment, according to Fitch, will come from the private sector, since government-owned firms will serve as nodal agencies and intermediaries. According to the Fitch research, India’s biggest renewable energy companies, including Greenko Energy Holdings and ReNew Power Private Limited, as well as other private enterprises, are boosting their investments in the power storage value chain.
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