Powering the Future: SECI’s Auctions for Solar Plus Storage and Promoting Energy Storage in India
The integration of energy storage technologies with renewable energy projects has emerged as a game-changer in India’s quest for clean and sustainable power. The Solar Energy Corporation of India (SECI) has been at the forefront of driving this transformation through its auctions for solar plus storage installations and round-the-clock renewable power projects. These auctions have not only promoted the inclusion of energy storage to smooth the output from renewable energy facilities but also reduced curtailment, making renewable energy a more reliable and viable source of power in India.
One of the main ways in which non-hydropower storage facilities are being installed in India is in combination with renewable energy projects. SECI’s auctions for solar plus storage installations have paved the way for the deployment of energy storage technologies alongside solar power plants. This allows for the capture and storage of excess solar energy during peak generation periods, which can then be utilized during periods of low solar irradiation or high demand. This has the potential to significantly enhance the dispatchability and reliability of renewable energy, addressing the issue of intermittency and making it a more attractive option for grid integration.
In addition to promoting solar plus storage installations, SECI’s auctions for round-the-clock renewable power projects have also incentivized the inclusion of energy storage. These projects aim to ensure a continuous and reliable supply of renewable energy round-the-clock, including during periods of low renewable energy generation. Energy storage plays a crucial role in bridging the gap between intermittent renewable energy generation and consistent power supply, thereby enhancing grid stability and reducing the need for fossil fuel-based backup power sources.
To further encourage the growth of energy storage in India, SECI and the Indian government can consider extending existing renewable energy financing tools to storage. For instance, renewable energy projects and electric vehicles currently have access to an accelerated depreciation tax benefit at a higher rate of 40% (IEA 2020b). Extending this benefit to energy storage projects can provide a direct financial incentive for the deployment of energy storage technologies in various applications beyond renewable energy integration, such as grid-scale storage, behind-the-meter storage, and off-grid applications.
In addition to tax benefits, other support mechanisms that can be considered include targeted pilot programs for emerging storage technologies, joint ventures, or special purpose vehicles funded by the Indian government. These approaches have been successful in countries like the United States, where states like Massachusetts and New York have implemented grant programs and funding initiatives to promote the adoption of energy storage technologies (Power Line 2019). Such initiatives can provide the necessary support for research and development, demonstration projects, and commercial deployment of energy storage technologies in India.
Furthermore, collaboration between academia, industry, and research institutions can play a crucial role in driving innovation and fostering the growth of the energy storage industry in India. SECI can actively promote partnerships between Indian and international entities to facilitate knowledge sharing, technology transfer, and research and development in the field of energy storage. These collaborations can lead to the development of advanced and cost-effective energy storage technologies that are tailored to the specific needs and conditions of the Indian market.
here are some recent tenders related to solar plus energy storage issued by the Solar Energy Corporation of India (SECI):
- 2.5 GW Round-the-Clock Renewable Energy Supply Tender: In February 2021, SECI issued a tender for the procurement of 2.5 GW of round-the-clock renewable energy supply, including 1.5 GW of solar power capacity coupled with energy storage projects. The purpose of this tender is to ensure a continuous and reliable supply of power from renewable energy sources, including during periods of low generation.
- 1.2 GW ISTS-Connected Solar PV Projects with Energy Storage Tender: In March 2021, SECI issued a tender for the development of 1.2 GW of interstate transmission system (ISTS)-connected solar PV projects with energy storage in India. This tender aims to promote the deployment of solar power projects coupled with energy storage to enhance the dispatchability and reliability of renewable energy.
- 1.5 GW Renewable Energy + Energy Storage Tender: In November 2020, SECI issued a tender for the procurement of 1.5 GW of renewable energy capacity coupled with energy storage projects. This tender was aimed at promoting the integration of energy storage technologies with renewable energy projects to mitigate intermittency and enhance grid stability.
SECI’s auctions for solar plus storage and round-the-clock renewable power projects have been instrumental in promoting the integration of energy storage with renewable energy in India. Extending existing financing tools, implementing targeted pilot programs, and fostering collaboration between stakeholders can further accelerate the growth of the energy storage industry in the country. By leveraging the potential of energy storage technologies, India can achieve its renewable energy and sustainability goals, enhance grid stability, and contribute to a greener and more resilient energy future.