Types of Energy Storage Systems and why its important for India

A couple of days back the power ministry of India informed that they are looking to delicense the setting up of stand-alone energy storage system. If this happens, this will open up new avenues for business in the energy sector including energy trading.
One can install the standalone energy storage system, store the power when the tariff is low, and sell it back to the grid or a client when the tariff is high.
In this blog, we are going to understand the different applications or types of energy storage systems in both residential and the commercial sector.

By the way, if you want to know what is battery energy storage system or what is high voltage battery energy storage system then you can follow this link.
Battery Energy Storage System 

Types of Energy Storage System

Battery energy storage devices can be used for a variety of purposes. Peak shaving, load shifting, emergency backup, and various grid services are examples of commercial applications. Self-consumption, off-grid energy storage, and emergency backup are examples of residential applications.

Types of energy storage systems for residential applications

  • Emergency Power Backup
  • Energy Storage System for off-grid energy solutions
  • Energy Storage System for surplus power storage

The peace of mind that comes with keeping the electricity on during an outage is provided by battery energy storage. Energy storage can be used with or without solar panels, and it is a safe and smooth alternative to small generators, which are one of the most polluting sources.

For a solar-powered off-grid dwelling, batteries are required. The possibilities of modern battery energy storage devices greatly exceed those of the lead-acid batteries used by early solar DIYers decades ago. Modern systems are simpler to set up, configure, and scale, as well as being significantly cheaper per kWh of storage and far safer.

Homeowners can also store excess energy generated by solar panels during the day and use it at night with energy storage. For some consumers with utilities that do not offer net metering, this can be an excellent choice.

Types of energy storage systems for commercial applications

  • Peak Shaving

Peak shaving is the most important application of energy storage in a business setting. Demand charges can make up anywhere from 30% to 70% of a business’s utility bill if they are on a demand charge utility tariff. Solar panels aren’t always enough to keep these businesses running. During peak times, however, battery energy storage devices can ensure that no electricity above a predetermined threshold is pulled from the grid.

  • Load Shifting

Businesses can change energy usage by charging batteries with solar energy or when power is cheapest, and discharging batteries when electricity is more expensive. This is especially useful in rural areas or when there is no option for net metering.

  • Emergency Backup 

Battery energy storage solutions, like the uninterruptible power supply (UPS) under your desk or in your server room, can keep operations operating during power outages using the emergency backup.

  • Microgrids

Energy storage allows microgrids to be built in conjunction with renewable energy sources. Battery energy storage systems are economically viable due to their scalability and turnkey simplicity. Microgrids that are decentralized or off-grid can be employed in huge commercial buildings or even entire villages.

  • Grid Service

Battery energy storage can provide a variety of benefits to utility-scale clients, including reserve capacity, frequency regulation, and voltage management to the grid.

Why Energy Storage System in India is Important?

India is steadily moving away from fossil fuels and toward renewable energy sources. With an ambitious goal of obtaining 40% renewable installed capacity by 2030, energy storage appears to be the key to unlocking renewable energy’s actual potential and achieving this goal.

Increased reliance on renewable energy and increasing grid integration of renewable energy are not without their drawbacks. Due to the intermittent nature of renewable energy and its limited ability to ramp up and down in response to demand, a certain amount of capacity is wasted. Energy banking has been used in the past to overcome this disadvantage. 

Power generating companies, distribution licensees, transmission utilities, merchant power plants, bulk power users, and unaffiliated third parties are all potential owners of energy storage systems. Another issue they confront in this context is the regulatory treatment of energy storage assets, which includes market entrance fees, cost recovery structures/mechanisms (pricing), grid integration, usage of licensee’s assets, and revenue sharing.

Storage facilities owned by the transmission or distribution licensee, for example, could be utilized to keep the system stable, relieve grid congestion, and shift conventional supply to meet peak demand. Profit would not be a driving element in such a situation. A difference would be if storage assets were used by generating businesses, in which case profit would be a critical factor. Energy storage can lessen the dependency on Distribution Companies as a backup for bulk/industrial consumers. However, reducing reliance on Distribution Companies would result in higher tariffs for retail and domestic consumers, which would have a severe impact on Distribution Companies’ operations.

The India Energy Storage Alliance (IESA) estimates that India will have about 70 GW and 200 GWh of energy storage capacity by 2022, making it one of the world’s largest. However, the roadmap for ensuring clean energy supply identifies the need for a defined policy and regulatory framework for energy storage, comparable to India’s renewable energy policy, as well as investment incentives, enhanced storage technology, and realistic storage capacity development targets.