India Explores Battery Storage for Thermal Plants Amidst Renewable Energy Surge
India is pioneering a strategic shift in its power sector by evaluating the integration of battery storage systems with existing thermal power plants. This innovative move, currently under consideration by the government, aims to curb the escalating operational costs faced by conventional power stations due to the increasing fluctuations from renewable energy sources. While battery energy storage systems (BESS) have predominantly been utilized to ensure round-the-clock availability of intermittent renewables, their application to thermal plants is a new and critical step in managing grid stability.
The Central Electricity Authority (CEA) is actively studying how BESS can enhance the efficiency of thermal power plants. These plants often need to reduce their output during the day due to high injections of solar power into the national grid, leading to inefficient operation at low plant load factors (PLF) and increased per-unit costs. By incorporating storage, thermal plants can absorb excess renewable energy during peak generation and discharge it when renewable output is low or demand is high, maintaining a stable and reliable supply.
Power producers like NTPC Ltd have highlighted operational concerns arising from the increased flexibility demanded of their plants. The government has already started mandating battery storage for new renewable projects and is extending viability gap funding (VGF) to support BESS development, with a total outlay of ₹5,400 crore for 30 GWh of new capacity. This proactive approach underscores India’s commitment to achieving its ambitious non-fossil fuel capacity targets, which now stand at over 50% of the total installed electricity capacity, five years ahead of the 2030 goal.
This integration is vital for India’s energy future, balancing the rapid growth of renewables with grid stability. By addressing operational inefficiencies and leveraging storage, the country aims to transition smoothly towards a cleaner, more resilient power system. This ensures continued energy security while minimizing the economic burden on traditional power generation assets.
