Pioneering advancements in battery energy storage solutions to play a pivotal role in shaping India's energy landscape.

India’s energy landscape

India's progression in its energy transition is gaining momentum. Starting from Prime Minister Narendra Modi's pledge at COP26 to reach 500 GW of non-fossil fuel power capacity by 2032, to the eco-friendly initiatives outlined in the subsequent Budgets including the incorporation of the production link incentive scheme on Advance Chemistry Cell (ACC) battery storage, the shift in policy is transformative.

Earlier this year, the Ministry of Power, Government of India, finalized mechanisms for deploying funds via viability gap funding for various projects to develop battery energy storage systems, BESS, in the country. This initiative aims to ensure a continuous renewable energy supply, adding significant impetus to practical deployment efforts.

India’s energy landscape presents a complex blend of promise and challenge. The sun-drenched and wind-blessed areas in the southern and western regions are well positioned to tap into their renewable energy potential, propelling them towards a future powered by clean energy. India has surplus solar energy during the daytime and extra wind energy during the evening and without sufficient storage systems, this excess energy would go to waste. Battery energy storage system (BESS) addresses this issue by providing electricity during peak demand while stabilizing the grid.

Outlook for Battery Storage

The global energy storage market is experiencing rapid growth, driven by the need to balance the variability of renewable energy sources and address grid stability challenges.

As countries transition towards clean energy systems, there is a growing demand for scalable and cost-effective energy storage solutions. According to recent industry data, the deployment of energy storage projects is projected to reach significant milestones, with cumulative energy storage capacity expected to exceed several gigawatt-hours in the coming years.

According to the latest reports from the IEA, the global market for batteries in electric vehicles (EVs) and battery storage installations reached 14 million units and 40 GW, respectively, in 2023, with an estimated total investment of around USD 150 billion. Global installed battery energy storage systems (BESS) capacity as of 2023 was 86 GW.

This is projected to increase 9 to 14 folds by year 2030 reaching 760 – 1200 GW with India positioned to emerge as the third largest Utility scale BESS market by year 2030. China added 23 GW of BESS capacity in 2023, 66% of which were utility-scale projects, followed by the US and Europe.

The global battery manufacturing capacity which currently is at 2.5 TWh is expected to grow to 19 TWh by the year 2030. China will maintain a significant share of lithium-ion battery manufacturing capacity despite diversification in battery production. It decreases from nearly 85% today to 67% in 2030. Europe and the US will collectively hold about 30% of global battery manufacturing capacity, a significant increase from the current 6% each. Around 74 out of the top 100 battery developers worldwide are Chinese. In 2023, the total investment flow in batteries amounted to around USD 150 Billion 27% of which flowed into ESS.

Battery Storage in India

 The emergence of renewable energy paired with storage marks a fresh era of energy independence, resilience, and sustainability for India. The reliance solely on traditional fossil fuels and centralized power plants is fading. Instead, communities throughout India are adopting decentralized renewable energy systems coupled with advanced storage solutions. This empowers them to produce, store, and utilize clean energy according to their own needs and preferences.

India needs an advanced ecosystem of battery energy storage systems with a capacity exceeding 238 GWh to support its targeted non-fossil energy capacity of 500 GW by 2032. From expanding capacity to becoming a globally attractive destination for investment in this sector, India has made significant progress in less than a decade. The country's existing non-fossil-based capacity of around 200 GW is a testimony to this growth trajectory. While striving to integrate more solar and wind energy into the grid, India is also diversifying its energy mix. This evolving landscape demands substantial effort from the manufacturing sector. The industry's role is becoming increasingly crucial, necessitating the adoption of best practices in manufacturing. Advanced chemistry cells for stationary storage applications are essential for deployment in India's energy infrastructure.

Battery energy storage systems are pivotal in India's energy transition and renewable deployment. As India transforms its power infrastructure, a diverse range of storage solutions encompassing both technological and global adaptation must meet the varied needs of different regions, sectors, and consumer segments. Drawing from past experiences with PV Modules, aligning the implementation plan with local manufacturing's longer adaptation period requires an inclusive approach from the Centre, including reducing customs duties on energy storage solutions to expedite implementation. Such an inclusive approach is vital for meaningful progress towards achieving the net-zero emissions target by 2070. 

India is undoubtedly positioned for the swift deployment of Battery Energy Storage Systems (BESS) alongside other storage technologies to complement the deployment of renewable energy, aligning with the ambitious targets set by the Government of India. The most exciting part is that we are now entering into the execution phase of our plans.

 Canadian Solar: At the Forefront of Solar + Storage Solutions

 Canadian Solar (NASDAQ: CSIQ) was founded in 2001 and made its debut on the NASDAQ in 2006. Over the past two decades, Canadian Solar has evolved into one of the largest solar technology and renewable energy companies globally. Canadian Solar is a top bankable PV manufacturer and a Tier 1 Company, with three business units strongly positioned in the market:

1. e-STORAGE provides Turnkey utility-scale battery energy storage systems, with 4.5 GWh of deployed Energy Storage Projects

2. Canadian Solar Inc. Module Systems & Solutions (MSS): Global leader in solar modules, system kits & string inverters, with 118 GWh of cumulative modules delivered

3. Recurrent Energy Global developer of solar & energy storage projects, with a 10 GWh + 3 GWh of Solar + Storage Track Record

As of the end of June, 2024, its presence spans more than 30 countries, with a dedicated workforce exceeding 22,000 employees. From solar modules and energy project development to turnkey utility-scale battery energy storage systems, Canadian Solar remains committed to driving positive change and shaping a brighter tomorrow for all.

e-STORAGE , a subsidiary of Canadian Solar, stands at the forefront of the energy storage industry, specializing in designing, manufacturing, and integrating battery energy storage systems tailored for utility-scale applications. At the core of the e-STORAGE platform is SolBank , a self-manufactured, lithium-iron phosphate chemistry-based battery engineered for utility-scale applications. The latest iteration is SolBank 3.0 , with a capacity of 5 MWh, featuring high energy density, optimized modular design, advanced safety features, and flexible configurations, for increased installation and service efficiency.

The Company provides advanced battery storage systems and optional turnkey engineering, procurement, and construction (EPC) services. e-STORAGE currently operates two fully automated, state-of-the-art, and industry-leading manufacturing facilities with an annual capacity of 20 GWh for 2024. To date, e-STORAGE has deployed more than 4.5 GWh of battery energy storage solutions across the globe.

How can we best serve your business?

Canadian Solar Inc. and e-STORAGE are ideally positioned to support our clients in India in developing energy storage projects, offering comprehensive solutions, industry leadership, a proven track record, and a global presence.

Anurag A. is ready to support you in #India, navigating the complexities of the energy storage market.

Contact our local team to discover how we can best serve you!