Abstract

A survey of Indian power-sector stakeholders on the subject of Energy Storage System (ESS) policy and regulatory issues is presented. The survey is divided into four sub-themes: the need for ESSs; ESSs in a network context; ESSs in the market; and ESSs in innovation. Respondents support the need for dedicated ESS regulation, including a definition of ESSs. In terms of networks, respondents support unrestricted ownership, and the development of dedicated grid connection standards and the provision of ancillary services for the network by ESSs; this would allow their participation in wholesale energy markets. However, opinions diverge on the level of ESS regulatory oversight needed for grid investment deferral. As far as power markets are concerned, respondents agree on the need for updating bidding formats, special treatment for ESSs regarding grid access charges to eliminate market entry barriers and to incentivise the operational versatility of ESSs. However, opinions diverge on the appropriate compensation mechanism to be applied for services provided by ESSs. There is an agreement on supporting innovative ideas such as P-to-everything (P2X) conversion and the use of regulatory sandboxes for enabling ESS.

Highlights

  • India has set itself an ambitious target: 175 GW of renewable energy capacity by the year 2022 (NITI Aayog, 2015), and renewable energy capacity will only increase thereafter

  • The paper does not make any judgement on outcomes, but limits itself to providing readers with insights from stakeholders working within the Indian power sector

  • Need for Energy Storage System (ESS) in India Based on the literature review of the documents described in Appendix I, the first section of the survey identified three fundamental overview questions: 1) whether there is any need for ESSs in the Indian power sector; 2) whether there is a need for dedicated regulations and policies for ESSs; and 3) whether there is a need for the development of a dedicated regulatory definition for ESSs

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Summary

Introduction*

India has set itself an ambitious target: 175 GW of renewable energy capacity by the year 2022 (NITI Aayog, 2015), and renewable energy capacity will only increase thereafter. 3. Need for ESSs in India Based on the literature review of the documents described in Appendix I, the first section of the survey identified three fundamental overview questions: 1) whether there is any need for ESSs in the Indian power sector; 2) whether there is a need for dedicated regulations and policies for ESSs; and 3) whether there is a need for the development of a dedicated regulatory definition for ESSs. Figure 2Figure 1 provides a summary of the main results. 44% of the experts strongly agreed, 39% Agreed, and the rest “rather agreed” on the need for ESSs. Currently India does not have dedicated regulatory guidelines or policies addressing ESSs. ESSs are functionally versatile and they can participate across different segments of the electricity sector. Further discussion is needed on the appropriate approach for developing this definition in the Indian context

ESSs in the network context
ESSs in the power market
ESSs in the innovation context
Findings
Conclusions

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