Battery Energy Storage Systems :Overview & Feasibility

Rajul Saxena Consultant

Aartech Solonics Ltd . Delhi

Indian energy sector is poised for tremendous growth and reforms over the next 5-10 years•National level targets have been set for installing 160 GW of renewable energy by the year 2022•As per the central governmentintroduction of 6-7 million electric vehicles(EV/PHEV) along with the required supporting charging infrastructure is to be realized by 2020•In order to provide electricity to 300 million people by 2019 off-grid solutions involving a mix renewables have received a major push

Rapidly growing demand in the commercial and industrial sector for good quality reliable power and the national initiative for reduction of diesel consumption

India Opportunities•

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fit into any of the above goals are likely to haveInnovative and cost effective technologies which

a tremendous growth over the next decade.

India Market Opportunities•Over 300 million people in remote locations

have no access to the electric grid

•Replacement of large DG systems in the C&Isector where unavailability of good qualityreliable grid power necessitates high dieselconsumption

•Electric 2/4 wheelers for daily commuters and3/4 wheelers for fleet vehicles

•Wind scheduling, evacuation and energystorage are the need of the hour foroptimizing resource utilization

•As per government mandates the rapidlygrowing telecom industry is required tosubstitute diesel usage for backup systemswith renewables

•Ancillary services market is likely to grow overthe next few years .

Energy Storage:Regulatory & Policy Initiatives

The objective of the smart grid

the Indian power sector into a

and digitally enabled ecosystemby 2027.

The current government has set

access to every citizen by 2019.

remote areas currently have noaccess to electricity.

mission for India is to transform goals of providing 24/7 energy

secure, adaptive, sustainable Over 300 million people living inNational

Smart GridMission

NationalEnergyStorageMission

NationalSolar &Wind

Mission

NationalMission

for EnergyAccess

Under the National Electric Mobility Mission plan of 2020 the national goal is to have at least6-7 million EV/HEVs on Indian roads by the year 2020.

• MNRE has set target of 100GW Solar and 60 GW wind deployment by 2022.This includes over 20 Ultra Mega Solar parks of 1 GW+ capacity

NationalElectric

MobilityMission•

This includes increased usage of renewables, electric vehicles, microgrids, replacement of diesel generators and improved supply of renewable power.

Tremendous government incentive to provide significant reforms to the national energy scenario.

Renewables in India:Solar and Wind

• Currently installed total windgeneration capacity is 24GW

Western and southern regions of

capacity

•India include 90% installed

• Target for 2022 is 60 GW whichimplies almost tripling of the currently installed capacity Wind Generation

Capacity

• Currently installed total solar PVgeneration capacity is 4 GW

• Most regions of India have an

energy

Target for 2022 is 100 GW which

abundance of source of solar

•Solar Generation

Capacityimplies almost 30X of the currently installed capacity

Grid Balancing Services

Consumers have no ability to resolve the grid frequency on their own. In a synchronized grid this has to be managed by grid operators.• India can address a significant part of the frequency issues by allocation of 1.4-4.6 GW of flexible resources hydro, gas based generation and Electrical energy storage (EES)

•Government of India had launched the National Electric Mobility Mission Plan 2020 in 2013, to achieve national fuel security by promoting electric and hybrid electric vehicles.•In 2015, the Indian government launched Faster Adoption and Manufacturing of Electric Vehicle (FAME) scheme under which the government has set aside $12 million subsidy to provide discounts on purchase of electric vehicles in 2015-16.

Electric Vehicles• Electric 2/3 wheeler and

fleet vehicle market is expected to grow at a tremendous rate

Requirements for charging infrastructure, smart meters and testing are likely to gain importance

motivation and incentives the

•

Type Units in millions

Electric Two Wheeler 3.5-5

BEV (3W, 4W, Bus, LCV) 0.2-0.4

HEV (4W, Bus, LCV) 1.3-1.4

Total 5-7

Due to the government

Indian EV marked is poised for immense growth over the next 5 years. Technological innovations in EV technology and charging infrastructure will have immense growth potential.

Energy Storage Ecosystem :Energy Storage Ecosystem

10

Energy Efficiency and Cycle Life

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Cost to cycle life comparisonvs. Cycle Life Comparison

performance metrics:

Efficiency

ENERGY STORAGE

• Capital cost ($/kWh)• Cycle life• Roundtrip Energy

• Space footprint• C‐rate (duration)• Usable SOC range

Lead Acid batteries are work horse for the industrial and

residential backup and provide lower capital cost solutions , while Li Ion‐ &

Flow batteries are emerging as solutions for applications requiring higher cycle life.

Global Manufacturing Scale & Make in India

coming decade through innovation & technology partnerships

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• LEAD ACID battery leads the energy storage market in production and sales

• LITHIUM ION batteries are currently being manufactured in the GW scale (portable, transportation and grid storage)

• FLOW BATTERIES are currently being manufactured on a MW scale. Production may scale up significantly in the next 5 years

India has the potential to become global hub for advanced energy storage manufacturing in

Conclusion

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• India presents a huge market for advanced energy storage solutions and has the potential to become global hub for advanced energy storage manufacturing in coming decade through innovation & technology partnerships

• Current annual market for Lead Acid batteries is ~$3.5Billion & Indian telecom companies have deployed over$500 Million worth of Li Ion‐ batteries in past 2 years

• Indian policy makers are keen on encouraging energy storage technologies given the challenges faced .

The comparison for Costs between the Li ion and lead acid battery storage system is huge .

Lead Acid Lithium Ion (LFP)

Depth of Discharge 60% 80%

Cycle Life 3000 4000

Calendar Life 8 years 10 years

Recharge Efficiency 80% 95%Number of Replacements over 25 2 2years life

Cost/KWH $ 150 $ 300

Scrap Value (% of Battery Cost) 30% 0System Cost (Battery cost: 70:30 70:30Electronics cost)Net Cost of Electricity per unit Rs. 12.90 Rs. 18.68Over 25 years lifetime

Analysis of Unit cost ( 5 Mw Solar PV system )

SPV Cost of Electricity has been taken as Rs. 5.50/unit

Thank you