Business Opportunities with Energy Storage Systems

Energy is critical to the country’s economic change and the improvement of people’s quality of life. With a population of 1.37 billion, India is not just one of the world’s fastest-growing economies, but also the world’s fastest-growing energy user. India’s GDP is anticipated to grow to five times its current size by 2040, while its energy demand is expected to more than double. In this blog we will explore the business opportunities with energy storage systems and its parameters.

This, along with India’s low energy sources, means that India is heavily reliant on foreign countries to supply its energy demands. Although India possesses just 0.8% of the world’s oil and gas reserves, oil accounts for 34% of the country’s main energy consumption (MOSPI, National Statistical Office 2020), resulting in up to 80% import reliance on petroleum, oil, and lubricants (POL) goods (NITI Aayog and RMI 2017).

The demand for and consumption of energy will continue to rise as India continues to urbanize and progresses toward its goal of universal electricity access. A considerable percentage of this demand is expected to be met by renewable energy generation in India and numerous other nations. However, innovative and dispersed technologies such as energy storage systems should play an essential part in the integration and effective use of the numerous clean energy sources at our disposal.

Energy security and the preservation of energy reserves to satisfy national demands independently have never been more important. In many ways, the emergence of COVID-19 has exposed us to a new energy paradigm. Countries will now resort to less distant energy sources to ensure a steady supply of energy. To regain its development rate and revitalize its industrial sector, India must provide an uninterrupted, cheap, and well-integrated grid electricity infrastructure.

The Power Ministry recently suggested delicensing the stand-alone energy storage system. This has resulted in new commercial opportunities. Let’s have a look at those company possibilities.

Energy storage reduces intermittent power outages by storing extra electricity generated by renewable resources when demand is low and delivering it when demand is high. This helps the energy system balance load and decreases dependency on non-renewable resources. As a result, when paired with renewable resources, ESS has the potential to provide a reliable, ecologically beneficial, and low-cost energy supply. Furthermore, improving power quality through the use of ESS by residential, commercial, and industrial customers, in combination with renewable energy, might increase India’s energy availability, boosting overall demand and economic growth.

Electric transportation is another area where ESS plays a significant role. Electric vehicles (EVs) have the potential to revolutionize the transportation industry while also securing the energy mix. Efforts to harness electric mobility to minimize oil import reliance have continued. Although India’s electric vehicle fleet is still small, the government’s ongoing legislative push is projected to increase EV market share shortly. However, for any deployment to be long-term, an uninterruptible source of energy and inexpensive EV batteries are required. As a result, electric mobility that makes use of locally produced, contemporary, and dependable energy storage would drastically reduce the country’s reliance on imported fossil fuels and EV batteries.

Supporting smart grids, reducing congestion in the transmission and distribution system, generating dynamic electricity markets, and ensuring energy self-sufficiency are just a few of the numerous uses where energy storage may be beneficial. Not only may ESS help countries transition to renewable energy and electric mobility, but it could also help make the power industry more efficient and modern.

Any business model for energy storage can be explored based on 3 parameters.

  1. Application of Energy Storage
  2. Benefit to the investor
  3. Revenue model of the energy storage

We have 4 types of business opportunities with energy storage sector:

Grid-Scale Storage:

Grid-scale storage necessitates long-term planning and substantial financial investments. Profitability takes a long time to achieve. Who owns the storage assets and whether the network and market values are captured will be the main topics of debate.

Behind-the-Meter Storage:

Energy generation and storage systems that directly supply houses and buildings with power are referred to as “behind-the-meter.” Residential and commercial solar panels, as well as residential and commercial solar batteries, are considered behind-the-meter because the energy produced and/or stored by these systems is independent of the grid and does not need to be counted by a meter before being used, so they are installed behind the meter.

However, “off-grid” is not the same as “behind-the-meter.” The majority of solar energy systems installed behind the meter are still grid-tied, which means they are still connected to the electrical grid.

Off-Grid Storage:

Stand-alone systems, which include both generating and distribution assets, include off-grid storage applications. As a result, the business models span the entire energy system. The scale of the system and the restrictions in existence will be distinguished.

Mobility Storage:

With the growth of charging-as-a-service, substantial changes are expected in the way refueling is done. Mobility storage business models are not necessarily in for revolution as the number of EVs and FCVs on the road increases, but major changes are expected in the way refueling is done.

How to scale energy storage system business?

Stage 1: Expanding the manufacturing capacity of battery packs and forming a multi-stakeholder R&D business

Stage 2: Expanding the supply chain, leveraging R&D, and reaping the benefits of the consortium-led approach to setting strategy and planning for battery cell production.

Stage 3: Expanding battery production capacity from end to end, with a concentration on battery cell capacity.

Where this energy storage can be used?

  1. Micro Grids
  2. Corporate Buildings
  3. Residential Societies
  4. Remote areas or off-the-grid places
  5. To strengthen the security forces 
  6. For the on-demand medical support services like a clinic on the wheel

At Inverted Energy, we manufacture Lithium Battery for the Energy Storage Systems