New Delhi : In a move that could supercharge the pumped hydro energy storage (PHES) sector, the power ministry has issued directives that are set to spur roughly 5 GW of capacity additions over the forthcoming half-decade, Crisil Ratings said. As the share of renewable energy generated during non-peak hours rises, the need for investments in storage infrastructure becomes increasingly crucial.
At present, solar energy accounts for half the country’s renewable output, chiefly generated under daylight’s umbrella. This poses a quandary, as peak power demand hits during the twilight hours from 5 PM to 8 PM. This discrepancy is on track to expand, with solar’s share in the green energy mix set to touch 58% in the next couple of fiscal years, putting a spotlight on the shortfall of storage infrastructure to meet peak-demand needs.
Energy storage systems (ESS) can act as a remedy, capturing surplus power generated in off-peak times and unleashing it when the grid calls for it. The ministry’s guidelines throw their weight behind PHES projects, given their superiority over battery energy storage systems (BESS), underscored by longer lifespans of nearly half a century, diminished upkeep costs, scant residual waste, and the capacity to stockpile energy for elongated spans without significant discharge.
However, PHES projects face their own set of challenges. The report highlights that negligible capacity additions have been observed since March 2017, mainly due to difficulties in identifying suitable sites, complex implementation processes, long gestation periods, and high capital costs, which hinder their viability. Additionally, the lengthy approval process involving land acquisition, forest, wildlife, and environmental clearances further adds to the delays.
Ankit Hakhu, Director at Crisil Ratings, commented, “The MoP guidelines could expedite environmental clearances for off-river PHES projects as they are being offered through a separate window. Furthermore, the guidelines provide for the government to offer land at concessional rates on an annual lease rental basis. They also allow the utilization of exhausted mines for PHES projects and provide a one-year relaxation for projects facing construction delays due to pending forest and environmental clearances. These measures should help mitigate implementation challenges and increase the availability of attractive sites.”
The report reveals that out of the anticipated 5 GW of PHES capacity to be commissioned over the next five fiscal years, 2.8 GW is currently under construction, with the remainder expected to be developed at potential sites, culminating in a cumulative capacity of 29.9 GW, as indicated by the Ministry of New and Renewable Energy.
Source: livemint
