During the 2023 United Nations Climate Change Conference (COP28), India made a significant stride by joining the Battery Energy Storage Systems (BESS) Consortium. This initiative, led by The Global Leadership Council (GLC) within the Global Energy Alliance for People and Planet (GEAPP), aims to foster collaboration among nations to secure 5 gigawatts (GW) of BESS commitments by the conclusion of 2024.
The inclusion of India in this consortium underscores its commitment to bolstering energy security and ensuring consistent access to reliable energy for all. Earlier this year, the Indian government approved a scheme dedicated to developing 4,000 megawatt-hours (MWh) of BESS projects by 2030-31. The scheme, offering up to 40% of capital cost support in the form of Viability Gap Funding (VGF) to developers, is anticipated to drive down infrastructure costs and encourage public-private partnerships.
Saurabh Kumar, Vice President – India, GEAPP, highlighted the consortium’s emphasis on collaborative action to facilitate a positive transition towards renewable energy integration. The expansion of BESS infrastructure is deemed critical in addressing intermittency issues, accelerating renewable energy (RE) integration, and introducing innovative regulations for grid balancing.
At The Energy Transition Dialogues (TETD) in New Delhi, GEAPP unveiled a comprehensive report titled ‘Powering Progress: Batteries for Discoms – A Market Action Report on Accelerating Battery Energy Storage in India’. The report forecasts a requirement of approximately 42 GW (208 GWh) of BESS to integrate 392 GW of Variable Renewable Energy (VRE) by 2030, predominantly from solar and wind sources.
Furthermore, GEAPP announced the expansion of its BESS project in India, aiming to achieve a 1GW target for Distribution Companies (DISCOMS) by 2026. The initiative involves IndiGrid, India’s first power sector infrastructure investment trust, undertaking a 20 MW/40 MWh project in Delhi. GEAPP plans to provide concessional debt financing and technical support, offering a novel pathway to circumvent cost and regulatory hurdles that have hindered similar projects in the past.
Apart from India, several other countries including Barbados, Belize, Egypt, Ghana, Kenya, Malawi, Mauritania, Mozambique, Nigeria, and Togo have committed to the BESS Consortium. This collective effort aims to develop 90 GW of storage capacity, crucial in achieving an estimated 400 GW of renewable energy needed by 2030.
The BESS Consortium, supported by various resource partners and organizations, anticipates achieving its initial 5 GW goal by 2024 and deploying these systems by 2027. The consortium’s collaborative approach aims to transform energy systems across low- and middle-income countries (LMICs) and expedite the adoption of cleaner energy sources alongside BESS technology.
