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3 rd Year<br />
IESA<br />
India Energy Storage Alliance<br />
Special<br />
Emerging Technology<br />
News<br />
Issue2 Volume2 Apr-Jun <strong>2015</strong><br />
UPS<br />
UPS<br />
STORAGE<br />
STORAGE
C ONTENTS<br />
TECH INSIGHTS GUEST ARTICLE MARKET INSIGHTS<br />
THE INDIAN BATTERY MARKET WILL<br />
WITNESS A CHANGE<br />
INDIA’S TWO WHEELER ELECTRIC<br />
VEHICLE SEGMENT<br />
SUSTAINABLE ENERGY AND SMART<br />
ENERGY SOLUTIONS ARE THE KEY<br />
FACTORS TO REALISE THE VISION<br />
OF SMART CITIES IN INDIA<br />
PG 18 PG 08<br />
PG 20<br />
Emerging<br />
Technology News<br />
00 EDITORS DESK<br />
PG 03<br />
Volume 2 Issue 2;<br />
April-June <strong>2015</strong><br />
01<br />
IESA NEWS<br />
PG 06<br />
03<br />
INDIA POLICY UPDATE<br />
PG 12<br />
04<br />
INTERNATIONAL MARKETS<br />
PG 16<br />
07<br />
INDUSTRY NEWS<br />
PG 27<br />
08<br />
INTERNATIONAL NEWS<br />
PG 32<br />
Editorial Team<br />
Dr Rahul Walawalkar<br />
Debi Prasad Dash<br />
Netra Walawalkar<br />
Design : Insonics<br />
A501 GO SQUARE , AUND HINJEWADI LINK RD ,<br />
WAKAD PUNE MH INDIA - 411057<br />
contact@indiaesa.info<br />
indiaesa.info<br />
1
AD SPAC E<br />
2
EIDITORS<br />
DESK<br />
Energy Storage: Enabling a<br />
decade of sustainable energy<br />
transformation in India<br />
00<br />
With the recent announcement from Ministry<br />
of New and Renewable Energy (MNRE) about<br />
Expression of Interest for Energy Storage<br />
projects to support renewable integration,<br />
there is tremendous excitement about India’s<br />
proposed Energy Storage Mission. India has<br />
witnessed number of transformations in past<br />
50 years starting with the Green Revolution<br />
of 1960s that transformed the agricultural<br />
practices in India. In 1970s and 80s, the “White<br />
Revolution - Operation Flood” included the<br />
world’s biggest dairy development program<br />
<br />
nation to the largest milk producer in the<br />
world within a span of 30 years. The 1990s<br />
saw the economic reforms that opened up the<br />
Indian economy and led to the telecom and<br />
IT revolutions that have made India a leader<br />
in the knowledge economy in the 2000s. This<br />
is a decade where India needs a clean energy<br />
revolution for transforming the electricity<br />
infrastructure to provide energy access to<br />
over 400 million of households that still lack<br />
basic access to electricity.<br />
Today, India is one of the fastest growing<br />
economies in the world, with current electricity<br />
peak load of ~150 GW to meet the needs of<br />
over 1.25 Billion population. India’s per capita<br />
annual consumption of energy at ~800 kWh<br />
is one of the lowest in the world, even when<br />
compared to developing countries like Brazil<br />
and China. At the same time India currently<br />
boasts a middle class population exceeding<br />
300 Million (almost the size of USA) that is<br />
looking for the same level of energy access<br />
and power quality that is taken for granted<br />
in developed countries through movement<br />
towards Smart Cities. Also the lack of reliable<br />
and quality power supply is a major obstacle<br />
for accelerating development of manufacturing<br />
sector in India under Indian Government’s<br />
Make in India initiative. Consumers bear<br />
a large burden due to poor quality and<br />
3
EDITORS DESK<br />
unreliable power supply. Industries maintain<br />
diesel powered generators and households<br />
have inverters with batteries as backup for<br />
unscheduled power cuts, low voltages or<br />
variable frequency.<br />
Energy Storage systems can play a key role<br />
in every part of the modern grid in India<br />
as envisioned by the central government of<br />
India:<br />
<br />
clean energy technologies with anticipated<br />
addition of over 60 GW of new wind capacity<br />
and 100 GW of solar capacity by 2022.<br />
<br />
energy access through microgrids for the 400<br />
million people without access to reliable grid<br />
electricity.<br />
<br />
transforming 100 smart cities in coming<br />
decade where energy storage technologies<br />
can serve as a backbone for better power<br />
quality and reliability desired by consumers.<br />
<br />
introduce ancillary services as well as<br />
scheduling of renewable resources that would<br />
help in increasing renewable penetration in<br />
the grid.<br />
<br />
transportation program with a goal of over 15<br />
Million EV/ HEVs by 2020 to reduce oil import<br />
bills.<br />
India Energy Storage Alliance (www.indiaesa.<br />
info) was created in 2012 with a conviction<br />
that energy storage technologies can help<br />
India leapfrog the modern grid development.<br />
India has recently grabbed global attention<br />
through early adaptors such as Reliance Jio,<br />
who has purchased Li-Ion batteries worth<br />
$300 M for the new 4G telecom towers and<br />
Sun Edison that has just recently announced<br />
<br />
Imergy Power for microgrids in India. Power<br />
Grid Corporation of India Ltd. has successfully<br />
conducted RFPs for selecting 3 different<br />
storage technologies of 500 KW for ancillary<br />
service demonstration project. Adoption of<br />
energy storage technologies is also being<br />
helped by reduction in capital costs and<br />
simultaneous improvements in performance.<br />
Simultaneously the cycle life improvements<br />
in most of the energy storage technologies<br />
will play a key role in reducing the levalized<br />
cost of energy storage and making these<br />
technologies a commercially viable solution in<br />
next 2-3 years.<br />
We also believe that India has potential of not<br />
only becoming the one of the largest markets<br />
for advanced storage technologies, but also a<br />
key player in the global supply chain through<br />
localization and innovation in energy storage<br />
<br />
Acid manufacturing industry with global leaders<br />
such as Exide and Amara Raja supplying lead<br />
acid batteries to over 35 countries around the<br />
globe. Various research universities are setting<br />
up Center of Excellences in energy storage and<br />
there are efforts to start incubation centers<br />
to accelerate development of next generation<br />
technologies in India. Ministry of New and<br />
Renewable Energy is currently working on a<br />
policy framework on storage and has created<br />
a standing committee on energy storage and<br />
hybrid system. Ministry of heavy Industries<br />
is working on the National Electric Mobility<br />
Mission and Ministry of Power is set to launch<br />
National Smart Grid Mission. With this right<br />
policy support, Indian Industry and Research<br />
community has the potential to deliver<br />
solutions that will not only address challenges<br />
faced by consumers in India, but also become<br />
a global hub for advanced energy storage<br />
solutions by 2020.<br />
4
IESA is a new initiative, still in infancy,<br />
but with the support of all our members and<br />
strategic partners from around the world, we<br />
<br />
in this energy revolution for India in coming<br />
decade. India has a robust manufacturing<br />
sector and many innovative entrepreneurs<br />
who are looking forward to forge partnerships<br />
with leading global technology companies.<br />
Such partnership has true potential to not<br />
only help solve the energy issues in India,<br />
but could make India a manufacturing base<br />
that can support needs of the global energy<br />
storage industry.<br />
<br />
in IESA activities rewarding and will be<br />
able to build relationships that can help<br />
commercialization and adoption of emerging<br />
energy storage & Microgrid technologies in<br />
India. We are happy to help in this exploration<br />
and hope to continue working with you in<br />
years ahead.<br />
With best regards,<br />
Rahul Walawalkar<br />
PhD, CEM, CDSM<br />
PRESIDENT & MD, CUSTOMIZED ENERGY SOLUTIONS INDIA PVT. LTD.<br />
VICE PRESIDENT, EMERGING TECHNOLOGIES, CES LTD.<br />
EXECUTIVE DIRECTOR, INDIAN ENERGY STORAGE ALLIANCE<br />
5
IESA<br />
NEWS<br />
01<br />
Prime Minister Narendra Modi’s recent visit<br />
<br />
by an Indian PM in over 40 years, is a sure<br />
sign that relations between our two countries<br />
are reaching new heights. The visit, which<br />
resulted in several new bilateral agreements<br />
and commercial deals worth over $1.6 billion.<br />
India Energy Storage Alliance<br />
(IESA), India signed an MOU<br />
with ESO, Canada<br />
I NDIA CAN BE A KEY MANUFAC TURING<br />
H UB AND ATTRAC TIVE MARKET FOR<br />
C ANADIAN ESS INDUSTRY<br />
India Energy storage alliance<br />
(IESA) signed an MOU with Energy<br />
Storage Ontario (ESO) to work in a<br />
collaborative manner on the relevant<br />
issues regarding energy storage and<br />
its development and integration.<br />
Recently the India Energy Storage Alliance<br />
(IESA) signed an MOU with Energy Storage<br />
Ontario (ESO) to work in a collaborative manner<br />
on the relevant issues regarding energy<br />
storage and its development and integration.<br />
The parties enter into this memorandum of<br />
understanding (MOU), agreeing to, whenever<br />
possible, share information and work in a<br />
collaborative manner on the relevant issues<br />
regarding energy storage and its development<br />
and integration. We hope that this collaboration<br />
will bring new technologies and expertise to<br />
India to boost energy storage market.<br />
Through this partnership IESA and ESO<br />
will establish forums for timely and open<br />
exchange of information on current and<br />
planned activities relevant to the vision to<br />
achieve reliable and quality power for all,<br />
involving a broad array of stakeholders.<br />
This platform will share information on<br />
key topics affecting development and<br />
implementation of the vision. It could<br />
establish non-exclusive vehicles for engaging<br />
the broad array of stakeholders including<br />
the utility industry, regulatory organizations,<br />
energy, telecommunications, controls, and<br />
information technology vendors, technology<br />
companies, consumer groups, government<br />
and non-governmental organizations.<br />
The year <strong>2015</strong> will be the most active year in the<br />
energy storage market in India. Government’s<br />
ambitious target of 175 GW of renewable<br />
energy by 2022 and “Make in India” campaign<br />
has largely encouraged all stakeholders to<br />
shift their focus to Indian Energy Storage<br />
Market. Energy storage technologies could<br />
play a key role in achieving this goal of greater<br />
renewable integration. India is poised for rapid<br />
adoption of energy storage technologies in<br />
the coming decade. Power Grid Corporation of<br />
<br />
storage projects during the year 2014. Many<br />
MNCs started their India operation and few<br />
other Indian companies stepped into energy<br />
storage verticals to leverage this opportunity<br />
in Indian market. This year IESA expect few<br />
more energy storage pilot projects will come<br />
in Indian market from both government<br />
and private sectors.’<br />
6
IESA NEWS<br />
in India through frequent interaction with all<br />
key stakeholders. As estimated by IESA, the<br />
energy storage alliance in Canada. It is a Indian energy storage market will be in the<br />
range of 15 to 20 GW in the period of <strong>2015</strong> to<br />
that was founded in 2012 as a subgroup of 2020. IESA will highlight the diversity of the<br />
the Corporate Partners Committee under <br />
the Smart Grid Forum. Like many other and microgrids. For details visit http://<br />
jurisdictions, Ontario is a market where indiaesa.info<br />
energy storage can serve many roles and<br />
solve many problems. Ontario has phased<br />
<br />
been bringing online more variable generators<br />
powered by renewable fuel sources. With the<br />
growing fraction of variable generation and<br />
<br />
<br />
2013, the Ontario Ministry of Energy released<br />
its Long-Term Energy Plan which mandated<br />
the procurement of 50 MW of energy storage.<br />
The Energy Storage Ontario (ESO) is a trade<br />
association that promotes the development<br />
and commercialization of competitive<br />
and reliable energy storage delivery<br />
systems through federal education, policy<br />
leadership, and advocacy in the province of<br />
Ontario for more details visit http://www.<br />
energystorageontario.com ;;<br />
The India Energy Storage Alliance (IESA)<br />
was launched in 2012 by Customized Energy<br />
Solutions to promote energy storage and<br />
micro grid technologies and their applications<br />
in India. IESA’s mission is to make power<br />
sector in India more competitive and<br />
<br />
various stakeholders in the industry and by<br />
promoting information exchange with the<br />
end users. IESA also provides insights to<br />
technology developers, original equipment<br />
manufacturers and system integrators on the<br />
policy landscape and business opportunities<br />
7
GUEST<br />
ARTICLE<br />
India received a major boost for its Electric<br />
Vehicle(EV) industry in April <strong>2015</strong>, when the Union<br />
Minister of Heavy Industries and Public Enterprises,<br />
launched the new subsidy scheme titled “Faster<br />
adoption and manufacturing of hybrid and electric<br />
vehicles in India”, also known as ‘Fame India’.<br />
According to the minister, “It is a dire necessity to<br />
<br />
friendly yet cost-effective for transport” reported<br />
by Press Information Bureau. After the successful<br />
launch of subsidy schemes for EVs by the Ministry of<br />
New and Renewable Energy (MNRE) in 2010, which<br />
saw a big increase in the adoption of 2 Wheeler (2W)<br />
EVs, the Government released an ambitious mission<br />
plan for the EV segment called the National Electric<br />
Mobility Mission Plan (NEMMP) in January 2013.<br />
India. ‘Fame India’ is a demand incentive plan for<br />
NEMMP and it based on the National Mission on<br />
Electric Mobility (NMEM), which the Government of<br />
India set up in 2011.<br />
The budget allocations for the demand incentives<br />
under ‘Fame India’ are INR 155 crore for <strong>2015</strong>–16<br />
and INR 340 crore for the year 2016–17 for all EV<br />
segments. These demand incentives are given as<br />
discounts on vehicles. Vehicle dealers are supposed<br />
to start receiving the reimbursement for these<br />
discounts in 2–3 months, starting from August <strong>2015</strong>.<br />
For charging infrastructure, a budget of INR 10 crore<br />
and 20 crore is allocated for the years <strong>2015</strong>–16 and<br />
2016–17, resp.<br />
02<br />
India’s 2-Wheeler Electric Vehicle<br />
Segment<br />
The Center for Study of Science, Technology and<br />
Policy (CSTEP) has analysed the market, policy<br />
instruments and technical challenges related to<br />
the 2W EV segment which is also known as the<br />
electric bike segment. CSTEP’s analysis shows<br />
that both technical and policy related challenges<br />
are a deterrent to the adoption of electric bikes in<br />
India. A demand of 3.5–5 million 2W EV sales has<br />
been projected by NEMMP. Although this segment<br />
has the highest demand potential among all EV<br />
segments, technological challenges such as low<br />
range and the requirement of long charging time are<br />
major impediments hampering sales. India is also<br />
<br />
power supply. The government needs to set up<br />
additional power generation infrastructure in order<br />
to make EVs more attractive<br />
<br />
segments – Battery Electric Vehicles (BEV) and<br />
Hybrid Electric Vehicles (HEV); the latter consist<br />
of an internal combustion engine along with the<br />
battery. Hence, HEVs are generally more expensive<br />
than BEVs. Currently, in the 2W EV segment the<br />
major BEV manufacturers are Hero electric and YO<br />
bykes. Only TVS has come up with a 2W HEV called<br />
TVS Qube. The price of TVS Qube is expected to<br />
be INR 65,000, while BEV models are priced at<br />
INR 30,000–50,000. Although the subsidy amount<br />
declared on the 2W EVs ranges from INR 1,800–<br />
29,000 under ‘Fame India’, consumers can avail<br />
discounts of INR 7,500–10,000 on available models<br />
in the market. The comparable conventional, petrolbased<br />
2Ws include Honda Activa, TVS Jupiter, and<br />
Hero Maestro which cost INR 50,000–65,000.<br />
Technological Challenges<br />
CSTEP’s analysis of the various technological<br />
challenges faced by the 2W EV segment falls under<br />
two categories – battery technology and charging<br />
infrastructure.<br />
Currently, the EV technology is not mature<br />
8
GUEST ARTICLE<br />
Battery Technology<br />
enough to allow<br />
BEVs to compete with fossil fuel based vehicles.<br />
A major component in BEVs is the battery which<br />
has the highest cost among all other components;<br />
major technological challenges in BEVs are also<br />
associated with the battery. The energy storage<br />
capacity (kWh/kg) of batteries is about 100 times<br />
less than that of petrol or diesel. Hence, BEVs provide<br />
low range per charge. The 2W BEV models in the<br />
Indian market promise only 50–80 km range. The<br />
solution for this limited range issue is the installation<br />
of a larger battery pack. However, this increases<br />
<br />
a solution, a business model of leasing batteries<br />
<br />
of batteries.<br />
Another technical problem of BEVs is that their<br />
speed and acceleration is lower than conventional<br />
fuel-based vehicles because of the low power<br />
capacity (kW/kg) of batteries. The top speeds of<br />
these models range from 25–55 kmph. Higher<br />
speeds can be achieved by either increasing<br />
the cost or compromising the range. The use of<br />
supercapacitors in BEVs is a potential solution<br />
that the industry should explore. Supercapacitors<br />
are a type of electrochemical capacitors that use<br />
a physical process to store energy, unlike batteries<br />
which use chemical reactions. These have very<br />
high power capacity; hence they can charge and<br />
discharge very quickly unlike batteries. Thus, the<br />
use of supercapacitors is indispensable for faster<br />
BEVs. However, it is an expensive technology. In the<br />
future, supercapacitors can be made up of graphite<br />
which can be manufactured from organic wastes<br />
like coconut shell, hemp, etc., to reduce the cost.<br />
NEMMP aims to support R&D efforts related to next<br />
generation battery technologies and an expenditure<br />
of INR 1000 crore is expected till 2020. To address<br />
the technological bottlenecks in EVs, collaboration<br />
of local academic institutes with industry is of<br />
foremost importance.<br />
Charging related issues are another reason for low EV<br />
Charging Infrastructure<br />
penetration in vehicles market. All 2W BEV models<br />
in India use lead acid batteries. Lead acid batteries<br />
take 6–8 hours to charge, which makes these<br />
models unattractive to consumers as compared to<br />
petrol driven 2Ws. A low range clubbed with poor<br />
availability of charging stations lead to a range<br />
anxiety among consumers. A solution for quick<br />
recharging is battery swap, which is the equivalent<br />
of refuelling a vehicle, in terms of time. A strategic<br />
charging infrastructure network and battery swap<br />
stations can eliminate this problem and will make<br />
the use of BEVs in long distance drives possible.<br />
Smart grids can manage electricity loads during<br />
peak demand hours for utility and BEV charging.<br />
They can provide information on grid network,<br />
empty slots for charging, usage, and cost statistics.<br />
NEMMP has mentioned plans of spending around<br />
INR 1200 crore on charging infrastructures by 2020.<br />
9
GUEST ARTICLE<br />
VEHICLE TYPE<br />
HERO ELECTRIC BIKES<br />
YO BIKES HONDA ACTIVA TVS JUPITER<br />
RANGE (KM)<br />
50-80<br />
60-70<br />
240-320<br />
250-310<br />
FUEL<br />
ELECTRICITY<br />
ELECTRICITY<br />
PETROL<br />
PETROL<br />
CHARGING / REFUELLING TIME<br />
6-7 HRS<br />
6-8 HRS<br />
< 5 MINS<br />
< 5 MINS<br />
TOP SPEED (KM/HR)<br />
25-45<br />
25-55<br />
82<br />
90<br />
BATTERY LIFE (KM)<br />
15,000<br />
18,000<br />
-<br />
-<br />
BATTERY LIFE (YEARS)<br />
1.25<br />
1.5<br />
-<br />
-<br />
PRICE INR<br />
35,000-50,000<br />
40,000-55,000<br />
55,000-65,000<br />
50,000-60,000<br />
SUBSIDY INR<br />
7,500-10,000<br />
7,500-9,400<br />
-<br />
-<br />
COST OF FUEL<br />
0.1 - 0.2<br />
0.1 - 0.27<br />
1.1 - 1.6<br />
1.1 - 1.6<br />
The overall EV technology is improving and costs<br />
are coming down. Incentives such as discounts, low<br />
<br />
As their market penetration increases, costs will<br />
reduce automatically due to economies of scale and<br />
advances in technology. However, the industry will<br />
require appropriate support from the government in<br />
terms of policies and R&D funding if it is to become<br />
a key instrument in India’s goal of achieving lowcarbon<br />
transportation.<br />
AUTHOR:<br />
GANESHPRASAD RAVINDRA PAVASKAR<br />
RESEARCH ENGINEER<br />
CENTER FOR STUDY OF SCIENCE,<br />
TECHNOLOGY AND POLICY (CSTEP),<br />
BANGALORE<br />
E-MAIL: GANESHPRASAD@CSTEP.IN<br />
10
INDIA POLICY<br />
UPDATE<br />
03<br />
India Govt approves National<br />
Smart Grid Mission<br />
Government has launched the scheme<br />
namely Faster Adoption and Manufacturing<br />
of (Hybrid &) Electric Vehicles (FAME India)<br />
under National electric Mobility Mission Plan<br />
(NEMMP 2020)<br />
Government of India launched the National Electric<br />
Mobility Mission Plan (NEMMP) 2020 in 2013. It<br />
aims to achieve national fuel security by promoting<br />
hybrid and electric vehicles in the country. There<br />
is an ambitious target to achieve 67 million sales<br />
of hybrid and electric vehicles year on year from<br />
<br />
and monetary incentives to kick start this nascent<br />
technology. With the support from the Government,<br />
the cumulative sale is expected to reach 1516 Million<br />
by 2020. It is expected to save 9500 Million Liters<br />
of crude oil equivalent to Rs. 62000 Cr. savings.<br />
Government has launched the scheme namely<br />
Faster Adoption and Manufacturing of (Hybrid &)<br />
Electric Vehicles (FAME India) under NEMMP 2020<br />
in the Union Budget for <strong>2015</strong>16 with an initial outlay<br />
of Rs. 75 Cr.<br />
The scheme will provide a major push for early<br />
adoption and market creation of both hybrid and<br />
electric technologies vehicles in the country. The<br />
thrust for the Government through this scheme will<br />
be to allow hybrid and electric vehicles to become<br />
<br />
vehicles can replace the conventional vehicles and<br />
thus reduce liquid fuel consumption in the country<br />
from the automobile sector. It is envisaged that early<br />
market creation through demand incentive, in-house<br />
technology development and domestic production<br />
<br />
of scale in the long run by around the year 2020.<br />
Government has approved the National Smart Grid<br />
Mission (NSGM) -an institutional mechanism for<br />
planning, monitoring and implementation of policies<br />
and programs related to Smart Grid activities. This<br />
was stated by Sh. Piyush Goyal, Minister of state for<br />
Power, Coal & New and Renewable Energy (IC) in a<br />
written reply to a question in the Lok Sabha today.<br />
The total outlay for NSGM activities for 12th Plan is<br />
Rs 980 crore with a budgetary support of Rs 338<br />
crore.<br />
NSGM has three tier structure:<br />
<br />
Council headed by the Minister of Power. Members<br />
<br />
of concerned Ministries and departments. Role of<br />
Governing Council is to approve all policies and<br />
programme for smart grid implementation.<br />
<br />
Empowered Committee headed by Secretary<br />
(Power). Members of the Empowered Committee<br />
<br />
Ministries and departments. Role of Empowered<br />
Committee is to provide policy input to Governing<br />
<br />
grid projects, guidelines / procedures etc.<br />
<br />
Committee headed by Chairperson (CEA). Members<br />
of the Technical Committee are Director level<br />
<br />
representatives from industries and academia.<br />
Role of Technical Committee is to support the<br />
Empowered Committee on technical aspect,<br />
standards development, technology selection<br />
guidelines etc.<br />
11
INDIA POLICY UPDATE<br />
<br />
NSGM Project Management Unit (NPMU) headed<br />
by the Director NPMU. Director NPMU is a<br />
Member of the Governing Council and Empowered<br />
Committee, and Member Secretary of Technical<br />
Committee. NPMU is the implementing agency<br />
for operationalizing the Smart Grid activities in the<br />
country under the guidance of Governing Council<br />
and Empowered Committee.<br />
<br />
is available from NSGM budget. For selected<br />
components such as training & capacity building,<br />
<br />
<br />
Mission chaired by the Power Secretary of the State<br />
has also been proposed. Support for training &<br />
capacity building to State Level Project Monitoring<br />
Units (SLPMUs) for smart grid activities is provided<br />
by NSGM.<br />
The Minister further stated that The major activities<br />
envisaged under NSGM are development of<br />
smart grid, development of micro grids, consumer<br />
engagements and training & capacity building etc.<br />
NSGM entails implementation of a smart electrical<br />
<br />
of automation, communication and IT systems that<br />
<br />
generation to points of consumption, the Minister<br />
added.<br />
CERC has issued revised draft Regulatory<br />
Proposed Framework for Forecasting,<br />
Scheduling & Imbalance Handling for<br />
Renewable Energy (RE) Generating<br />
Stations based on wind and solar at Inter-<br />
State Level<br />
Framework for Forecasting, Scheduling & Imbalance<br />
Handling for Renewable Energy (RE) Generating<br />
Stations based on wind and solar at Inter-State<br />
Level”. RE generation by nature is considered<br />
intermittent, uncertain and variable. Taking into<br />
consideration these aspects and to facilitate<br />
integration of RE generation in the grid, CERC has<br />
proposed this framework for forecasting, scheduling<br />
<br />
RE generation (like wind and solar) which also<br />
factors in the variable and intermittent nature of such<br />
generation. This could lead to renewed interest in<br />
use of energy storage for smoothing the renewable<br />
output and helping renewable project developers<br />
to schedule the intermittent wind / solar power as<br />
stipulated in the proposed framework.<br />
The proposed framework for the wind and solar<br />
energy generators provides motivation to the Wind/<br />
Solar energy generator to remain within the desirable<br />
<br />
of higher deviations than the proposed band<br />
especially in lean season for wind generation and<br />
in rainy season for solar generation. The framework<br />
suggests the generator to take into consideration<br />
the costs associated with the “forecasting” tools and<br />
techniques. But what also need to be considered<br />
<br />
variable power. The stakeholders will show interest<br />
in certain business options only if they get attractive<br />
returns with certain degree of assurance. It has<br />
been observed that the deviations especially in case<br />
<br />
So, the stakeholders would be more apprehensive<br />
to venture into the interstate sale business.<br />
12
INDIA POLICY UPDATE<br />
The RE stakeholders do not venture into interstate<br />
sale not only because they require to schedule the<br />
generation, but, they need to pay transmission<br />
and wheeling charges and bear Transmission and<br />
wheeling losses for the involved network. As the CUF<br />
<br />
the charges based on rated capacity (MW basis) do<br />
not provide a commercially attractive business case<br />
for RE stakeholders. At present, CERC has waived<br />
off interstate charges for Solar Generators. But,<br />
based on prevailing regulatory work and proposed<br />
<br />
to attract stakeholders to adopt this interstate<br />
transaction route unless some market designs are<br />
created for RE generation integrated with the energy<br />
storage.<br />
Till date, the Unscheduled Interchange was being<br />
commercially settled as per the Deviation Settlement<br />
<br />
for interstate transactions. The national grid faced<br />
major failures in July, 2012. Since then, there has<br />
been a demand for bringing in the framework which<br />
can take care of power quality and grid security &<br />
stability.<br />
Over the years, CERC has tightened the frequency<br />
band. CERC had also issued a staff paper on<br />
Ancillary Services in December 2013. After having<br />
discussions with the appropriate authorities and<br />
stakeholders consultation meets, CERC has issued<br />
draft regulatory framework for introduction of<br />
Ancillary Services at Interstate level.<br />
determined or adopted by the Commission and<br />
are operating on part load and have not received<br />
full requisition shall be eligible to participate in the<br />
Reserves Regulation Ancillary Services Market.<br />
Although these rules are a step in right direction,<br />
relying on stranded capacity for ancillary services<br />
such as frequency regulation may not be most<br />
economical. As it has been seen in US, energy<br />
<br />
effective for procuring fast frequency regulation<br />
service to the grid and thus help optimize the grid<br />
resources better than use of conventional fossil<br />
generators. IESA has released a comprehensive<br />
report titled “Energy Storage Technologies for<br />
Ancillary Services in India”<br />
The Government is very serious on increasing RE<br />
mix. The proposed amendment in National Tariff<br />
Policy for higher RPO obligations, the commitment<br />
from investors for 266 GW in REINVEST <strong>2015</strong><br />
<br />
high RE based capacity installations in some RE<br />
prominent states.<br />
The RE generation is being effectively utilized to<br />
provide ancillary services in some of the Countries.<br />
CERC may think seriously to bring in the required<br />
ancillary services framework by introducing market<br />
designs for RE (integrated with storage) as well. This<br />
will help the RE generators in having more business<br />
options and earn revenue from multiple streams and<br />
<br />
At present, around 5000MW interstate generating<br />
capacity is not getting requisitioned. CERC intends<br />
to tap this capacity for initiating Ancillary services.<br />
Objective of proposed Reserves Regulation Ancillary<br />
Services (RRAS) is to restore the frequency level at<br />
desired level and to relieve the congestion in the<br />
transmission network.<br />
All Inter-State Generating Stations whose tariff is<br />
13
INDIA POLICY UPDATE<br />
CERC - Draft Regulations for<br />
Ancillary Services Operations<br />
Till date, the Unscheduled Interchange was being<br />
commercially settled as per the Deviation Settlement<br />
<br />
for interstate transactions. The national grid faced<br />
major failures in July, 2012. Since then, there has<br />
been a demand for bringing in the framework which<br />
can take care of power quality and grid security &<br />
stability.<br />
Over the years, CERC has tightened the frequency<br />
band. CERC had also issued a staff paper on<br />
Ancillary Services in December 2013. After having<br />
discussions with the appropriate authorities and<br />
stakeholders consultation meets, CERC has issued<br />
draft regulatory framework for introduction of<br />
Ancillary Services at Interstate level.<br />
resources better than use of conventional fossil<br />
generators. IESA has released a comprehensive<br />
report titled “Energy Storage Technologies for<br />
Ancillary Services in India”<br />
The Government is very serious on increasing RE<br />
mix. The proposed amendment in National Tariff<br />
Policy for higher RPO obligations, the commitment<br />
from investors for 266 GW in REINVEST <strong>2015</strong><br />
<br />
high RE based capacity installations in some RE<br />
prominent states.<br />
The RE generation is being effectively utilized to<br />
provide ancillary services in some of the Countries.<br />
CERC may think seriously to bring in the required<br />
ancillary services framework by introducing market<br />
designs for RE (integrated with storage) as well. This<br />
will help the RE generators in having more business<br />
options and earn revenue from multiple streams and<br />
<br />
At present, around 5000MW interstate generating<br />
capacity is not getting requisitioned. CERC intends<br />
to tap this capacity for initiating Ancillary services.<br />
Objective of proposed Reserves Regulation Ancillary<br />
Services (RRAS) is to restore the frequency level at<br />
desired level and to relieve the congestion in the<br />
transmission network.<br />
All Inter-State Generating Stations whose tariff is<br />
determined or adopted by the Commission and<br />
are operating on part load and have not received<br />
full requisition shall be eligible to participate in the<br />
Reserves Regulation Ancillary Services Market.<br />
Although these rules are a step in right direction,<br />
relying on stranded capacity for ancillary services<br />
such as frequency regulation may not be most<br />
economical. As it has been seen in US, energy<br />
<br />
effective for procuring fast frequency regulation<br />
service to the grid and thus help optimize the grid<br />
14
INTERNATIONAL<br />
MARKETS<br />
04<br />
<br />
must double to 45 per cent by 2030. To do so, an<br />
estimated 150 GW of battery storage and 325 GW<br />
of pumped-storage hydroelec¬tricity will be needed,<br />
making storage a vital element in the expansion of<br />
renewable energy.<br />
IRENA Roadmap Breaks New<br />
Ground on Renewable Energy<br />
Storage<br />
A new ground-breaking report from the International<br />
Renewable Energy Agency (IRENA) provides clear<br />
direction on how to advance storage systems as part<br />
of the infrastructure for a sustainable energy future.<br />
Renewables and Electricity Storage, released today<br />
on the side lines of IRENA’s ninth Council meeting,<br />
<br />
where governments and industry can work together<br />
to facilitate the development of policies on electricity<br />
storage for renewables. The report is part of IRENA’s<br />
REmap 2030 program.<br />
To avoid the worst effects of climate change and<br />
accelerate sustainable energy transformation and<br />
economic growth, IRENA’s REmap 2030 report<br />
“Now is the time to think about integrating largescale<br />
battery storage into the global energy system,”<br />
said IRENA Director-General Adnan-Z Amin. “This<br />
roadmap is a starting point for all policy makers<br />
seeking to integrate greater storage capabilities,<br />
which is necessary to ensure the world is ready<br />
for the next phase of growth for renewable power<br />
systems.” Dr. Rahul Walawalkar, Executive Director<br />
- IESA, VP, Emerging Technologies & Markets,<br />
Customized Energy Solutions was present at the<br />
ninth IRENA Council meeting, Abu Dhabi, U.A.E as<br />
a speaker.<br />
<br />
storage to support renewables in islands and<br />
remote areas, consumer-located storage for selfconsumption<br />
in countries with high shares of<br />
rooftop solar PV systems, generator and gridlocated<br />
storage for countries with grid infrastructure<br />
constraints and system analysis tools for countries<br />
preparing to transition their power sector towards<br />
GRAPHIC FROM THE RENEWABLES AND<br />
ELECTRICITY STORAGE REPORT. SYSTEMS,<br />
GENERATION- AND GRID-LOCATED FOR<br />
COUNTRIES WITH GRID INFRASTRUCTURE<br />
CONSTRAINTS, AND SYSTEM ANALYSIS TOOLS<br />
FOR COUNTRIES PREPARING TO TRANSITION<br />
THEIR POWER SECTOR TOWARDS RENEWABLES.<br />
15
INTERNATIONAL MARKETS<br />
renewables.<br />
The roadmap is the product of four stakeholder<br />
workshops involving more than 200 electricity<br />
storage experts from 50 countries. One of the<br />
successful Workshop was organised during Energy<br />
Storage India Conference 2014 at New Delhi, India.<br />
“The value of this roadmap is that it brought<br />
together policy makers from across the globe with<br />
the leading industry experts and academics,” said<br />
Chairperson of the Global Energy Storage Alliance<br />
Janice Lin. “At every workshop, we were asked to<br />
<br />
is truly a product of international cooperation.”<br />
16
TECHNOLOGY<br />
INSIGHT<br />
By Harsh Thacker,<br />
Senior Analyst, at Customized Energy<br />
Solutions<br />
Will the Indian battery market scenario witness a<br />
major change? As the power supply in the country<br />
continues to be unreliable, the role of batteries has to<br />
change from being an emergency back-up solution<br />
to a long time power/energy storage solution. With<br />
the advent of the summer, as in each previous year,<br />
the power supply scenario will only worsen, and the<br />
sales of batteries, inverters and solar panels will be<br />
at their peak.<br />
05<br />
Times of Change in the Indian<br />
Battery Energy Storage Market<br />
The consumers are expecting their inverters to work<br />
for long hours and to carry the entire load in their<br />
<br />
acid batteries have so far played the role of energy<br />
storage devices in the country, but they are yet to<br />
deliver the customers’ expectation of providing<br />
high power storage for long hours with 3-5 year<br />
life. Additionally, many residential, commercial and<br />
industrial complexes have started installing rooftop<br />
solar PV modules along with inverters and battery<br />
storage. With such applications, high demand<br />
supply mismatch and high ownership costs of<br />
diesel gensets, consumers will feel the need for high<br />
power, deep discharge batteries more than they<br />
wanted in the past. Along with these changes, the<br />
price range of lithium-ion batteries have come down<br />
considerably over the last 12 months to change the<br />
dynamics of the market. It was not long back when<br />
Li-ion batteries were costing more than $ 1000/kWh.<br />
Now some of the global Li-ion battery manufacturers<br />
have reported even price points below $400/kWh<br />
for the same technology.<br />
On the other hand, the energy storage market in<br />
India is expecting the announcement of Energy<br />
Storage Mission by the MNRE (Ministry of New<br />
and Renewable Energy, Government of India) at RE<br />
Invest in February <strong>2015</strong>; which will bring a change in<br />
the scenario of storage applications at grid storage,<br />
like renewable energy integration and grid ancillary<br />
services.<br />
At the Energy Storage India conference in New Delhi<br />
<br />
2014) Mr. Sushil Kumar Soonee, CEO, POSOCO, said<br />
that both the regulatory and the planning team have<br />
to consider the price of load shedding and power<br />
disruptions, which the end consumers have to pay.<br />
The tool of load shedding will be always a cheaper<br />
option than the tool of the ancillary service market.<br />
But if we consider the cost which the end consumer<br />
pays for the load shedding, energy storage solutions<br />
<br />
regulatory panel in the conference also commented<br />
that the Indian grid operators are everyday handling<br />
ramp rates of over 40 MW per minute, which is<br />
an incredible effort. Energy storage can help the<br />
operators in smoothing this steep rate and can<br />
make the grid more secure. Most of the exhibitors<br />
and visitors at Energy Storage India showcased and<br />
discussed advanced battery technologies like the<br />
Lithium Ion, UltraBattery, Flow Batteries, Sodium<br />
Batteries and other new technologies.<br />
On the other hand, the local battery exhibitions<br />
in India, such as PowerOn (January <strong>2015</strong>) and<br />
Maharashtra Battery Expo (which concluded in<br />
December 2014), were dominated by Lead Acid<br />
industry. It was very refreshing to witness greater<br />
participation of VRLA battery exhibitors, instead of<br />
<br />
application of up to 400 Ah.<br />
Among hundreds of exhibitors of lead-acid<br />
17
TECHNOLOGY INSIGHT<br />
batteries, in a corner there was also a Lithium<br />
Phosphate battery company from China, all ready to<br />
sell its storage solution for solar and EV application<br />
<br />
manufacturer eyeing to sell its products to the rooftop<br />
Solar PV market in India. At a price point of<br />
<br />
<br />
in the country to start the manufacturing of Li-ion<br />
batteries in India by October <strong>2015</strong>. The market will<br />
closely monitor the installation and performance of<br />
80,000 sets of Li-ion batteries ordered by Reliance<br />
Jio (a telecom company), one of the early movers<br />
to install Li-ion batteries to supply power to its<br />
telecom towers. This order was distributed among<br />
the companies, namely Saft, Coslight, Narada and<br />
Panasonic.<br />
There were a few companies equipped with hybrid<br />
inverters for residential and commercial markets.<br />
They claimed that the inverters can be connected to<br />
a DG (Diesel Generator set) power supply, solar PV<br />
and main supply and it can automatically select the<br />
best option, prioritizing the renewable energy supply.<br />
As the roof top solar market evolves as part of the<br />
100 GW solar by 2022 vision of the Power Minister,<br />
Mr Piyush Goyal, India will witness introduction of<br />
advanced hybrid inverters and PCS solutions by<br />
global leaders such as Siemens, Eaton, S&C, ABB<br />
and SMA. With Indian Government’s Make in India<br />
initiative, most of these companies are considering<br />
<br />
bring down costs of these solutions.<br />
drastic reduction of Li-ion batteries prices, and the<br />
price of $300 per kWh can be that point of disruption<br />
for various industrial and commercial energy<br />
storage applications. Apart from cost reductions,<br />
improvements in cycle life, charge – discharge<br />
rates (c-rate) and deeper cycling capability is also<br />
resulting in lower Levelized cost of energy delivered<br />
from advanced storage technologies. Data collected<br />
by IESA indicates trends which can bring down the<br />
Levelized cost of energy delivered from advanced<br />
<br />
<br />
<br />
economies of scale.<br />
Any unsafe occurrences with the installations of<br />
new battery technologies can hamper their market<br />
penetration. Hence, both manufacturers and<br />
installers are willing to educate the market about<br />
the additional battery management systems and<br />
maintenance which are mandatory for the new<br />
technologies. This shift in the market dynamics<br />
will also open up huge opportunities for battery<br />
management systems, hybrid inverter and smart<br />
charging appliances companies.<br />
With further reduction in the prices of solar PV<br />
and advanced storage technologies, the storage<br />
market might witness a big change. Other battery<br />
technologies like UltraBattery (a combination of<br />
VRLA and ultra-capacitor) and Flow batteries are<br />
investing time, money and efforts to gain a share in<br />
the big pie of over $1.3 billion annual battery storage<br />
market in India. The market is poised to unsettle with<br />
18
MARKET<br />
INSIGHT<br />
By Debi Prasad Dash,<br />
Manager, India Energy Storage Alliance<br />
Analyst, at Customized Energy Solutions<br />
The Smart Cities Mission was launched by Prime<br />
Minister Mr. Narendra Modi on 25th June <strong>2015</strong> with<br />
extraordinary fanfare to transform and develop 100<br />
cities to become the growth engines of urban India.<br />
In total Central Government approved the spending<br />
of about INR 1 lakh core (USD $16 billion) on urban<br />
development under two new urban missions over the<br />
next 5 years. The Cabinet has approved the Smart<br />
Cities Mission and the Atal Mission for Rejuvenation<br />
and Urban Transformation of 500 cities (AMRUT)<br />
with outlays of INR 48,000 crore (USD $7.7 billion)<br />
and INR 50,000 crore (USD $8 billion) respectively.<br />
Under the Smart Cities Mission, each selected<br />
city would get central assistance of INR 100 crore<br />
<br />
aspirants will be selected through a ‘City Challenge<br />
<br />
ability of the cities to perform to achieve the mission<br />
<br />
of smart city aspirants as per the norms to be<br />
indicated and they will prepare smart city proposals<br />
(SCP) for further evaluation for extending Central<br />
<br />
06<br />
Sustainable energy and smart energy<br />
solutions are the key factors to realise<br />
the vision of smart Cities in India<br />
This Mission of building 100 smart cities intends<br />
to promote adoption of smart solutions for<br />
<br />
and growing infrastructure with the objective of<br />
enhancing the quality of urban life and providing<br />
a clean and sustainable environment. It will be<br />
implemented through ‘area based/ location based’<br />
approach and citizens participation consisting of<br />
<br />
development of new cities. Pan-city components<br />
<br />
<br />
reducing commuting time and carbon footprints.<br />
Under smart cities initiative, focus will be on<br />
core infrastructure services like: Adequate and<br />
clean Water supply, Sanitation and Solid Waste<br />
Management, Affordable housing for the poor,<br />
<br />
24X7 power supply, robust IT connectivity,<br />
e-governance and citizen participation, safety<br />
and security of citizens, health & education and<br />
sustainable urban environment. This Action Plans<br />
will be implemented by creating Special Purpose<br />
Vehicles (SPV) for each city and state governments<br />
will ensure steady stream of resources for SPVs with<br />
the support of central government.<br />
To implement this program, central government<br />
issued the guidelines for the proposal. Let’s discuss<br />
how sustainable energy is the key parameters<br />
to make this Smart Cities Mission programme<br />
successful.<br />
<br />
the energy requirement coming from solar power<br />
in the City. It will help to achieve government’s 100<br />
GW solar target by 2022.<br />
<br />
<br />
<br />
<br />
This element will encourage the adaptation of electric<br />
vehicle (EVs and HEVs) in SEZs and townships in the<br />
smart cities. Electric bus can also be implemented<br />
in public transit system.<br />
<br />
Management Platforms: During the presentations,<br />
R. Chandrashekhar, President, NASSCOM focused<br />
on the development of electric vehicle charging<br />
systems to boost the adoption of electric vehicles in<br />
these cities.<br />
19
MARKET INSIGHT<br />
<br />
Solutions:<br />
<br />
<br />
City proposal (SCP), central government guidelines<br />
<br />
system, which will boost solar streetlight usage in<br />
India.<br />
NASSCOM also proposed various competitive<br />
market mechanisms adopted in developed<br />
countries for the electricity sector in smart cities<br />
Such as: Feeder and substation automation using<br />
SCADA, Demand-Response Program, Adoption<br />
of analytics and energy simulation to optimise<br />
energy consumption, focus on power quality and<br />
integration of energy storage at grid level to solve<br />
grid overloading, grid management and ancillary<br />
services introduction.<br />
On the generation side, NASSCOM also proposed<br />
integration of energy storage for decentralised<br />
energy generation and on the consumer side,<br />
it proposed introduction of innovative business<br />
solutions like energy service management, electric<br />
infrastructure management and use of smart meters.<br />
<br />
Smart Solutions will enable cities to use technology,<br />
information and data to improve infrastructure<br />
and services. For smart solutions, smart energy<br />
management is a focused vertical for the government<br />
to implement smart cities in India.<br />
From these features of Smart Cities Mission, it is<br />
evident that the government is keen to implement<br />
smart solutions in energy infrastructure and<br />
distributed generation. To balance higher renewable<br />
generation and grid stability in these cities, energy<br />
storage market will encourage through competitive<br />
market development and induction of ancillary<br />
services. IESA expects that Large scale private<br />
townships, SEZs, Industrial regions will be the<br />
<br />
transportation, smart energy solutions and energy<br />
storage in near future.<br />
The India Energy Storage Alliance (IESA) was<br />
launched in 2012 by Customized Energy Solutions<br />
(http://ces-ltd.com ) to promote Energy Storage and<br />
Micro grid technologies, along with their applications,<br />
in India. IESA does this by creating awareness<br />
among various stakeholders to make the<br />
20
MARKET INSIGHT<br />
Indian industry and power sector more competitive<br />
<br />
with the end users-as to assist with more informed<br />
decision making. IESA also provides insights to<br />
technology developers and system integrators on<br />
the policy landscape and business opportunities<br />
in India through frequent interaction with key<br />
stakeholders. With responses received from<br />
storage industries across the globe, the IESA is<br />
quickly gaining a strong foothold across various<br />
stakeholders and technology providers. For more<br />
details visit http://indaesa.info<br />
21
22
INDUSTRY<br />
NEWS<br />
07<br />
The New Motion to invest INR<br />
1000 crore for smart chargers in<br />
India for electric vehicles<br />
BY BUILDING A MANUFAC TURING<br />
FAC ILITY IN INDIA, WE ARE TRYING<br />
TO BRING DOWN THE C OST OF C HARGING,<br />
- R ITSAART MONTFRANS.<br />
The electric vehicle industry is kicking off<br />
<br />
investments, both from the industry as well as<br />
the government, start to pour in. New Motion,<br />
one of the world’s largest smart charging<br />
companies, is investing about Rs 1,000 crore)<br />
in setting up a manufacturing facility in India<br />
and make India its global manufacturing hub.<br />
“In Europe there’ll be 3 million electric vehicles<br />
in the coming 5 years. We expect the numbers<br />
in India to be much larger than that,” said<br />
Ritsaart Montfrans, founder and CEO at New<br />
Motion. “By building a manufacturing facility<br />
iIndia, we are trying to bring down the cost of<br />
charging -it needs to be affordable for India.”<br />
<br />
<br />
the pilot projects, that limitation is no more<br />
there,” he said.<br />
Experts feel the much needed push from the<br />
government would encourage people to start<br />
using electric bikes and cars by making them<br />
more cost effective. “Charging infrastructure<br />
will be critical for the development of the<br />
electric vehicle ecosystem in the country. It<br />
is yet to be seen if the initial Rs 1,000 crore<br />
<br />
and which cities will be able to get advantage<br />
from this,” said Satish RM, principal research<br />
analyst at Gartner.<br />
“The government should also mandate the<br />
use of electric vehicles for at least the public<br />
transportation to kick start the ecosystem.The<br />
focus for incentives should be on two-wheelers<br />
as that’s where the bulk of the consumption<br />
lies in India.”<br />
According to NEMMP, it is estimated that the<br />
government will need to provide support to<br />
the tune of Rs 13,000- 14,000 crore over the<br />
<br />
Source: Economic Times, April 07, <strong>2015</strong><br />
Amara Raja to expand portfolio<br />
in solar, defence applications.<br />
While charging a car using a regular power<br />
socket takes about 6-7 hours currently, New<br />
Motion’s smart chargers can charge 80%<br />
of the vehicle in 15-30 minutes. Montfrans<br />
said, based on the outcomes and the overall<br />
cost of manufacturing in India, the company<br />
would be look at selling its chargers to other<br />
countries from India. He also said that while<br />
the government has been very supportive so<br />
far in building the electric vehicle ecosystem<br />
in the country, what was lacking, so far, were<br />
Amara Raja Batteries is looking at expanding<br />
product portfolio, including applications in<br />
solar and Defence, to reach the top slot<br />
in battery industry in both industrial and<br />
automotive sectors, company’s vice chairman<br />
Jayadev Galla said today.<br />
He hinted that the group may also look for<br />
inorganic growth to become a dominant<br />
player in the sector. “We are also looking<br />
23
INDUSTRY NEWS<br />
at emerging applications like solar, electric<br />
vehicles and Defence to expand our battery<br />
range. Our vision is to be top global player in<br />
the industrial batteries and to be a dominant<br />
regional player in the automotive batteries<br />
within the next decade.<br />
“We explore both organic and inorganic<br />
opportunities to make this happen,” Galla<br />
said at the inaugural function of ‘Amara Raja<br />
Growth Corridor (ARGC)’, a 500-acre industrial<br />
<br />
company Amara Raja Batteries is currently<br />
enjoying 50 per cent market share in telecom<br />
battery segment, 30 per cent market share<br />
each in UPS and automotive battery segments.<br />
Imergy Flow Battery installed at<br />
GAT College in India<br />
The Global Academy of Technology (GAT)<br />
College, an engineering education institution<br />
in Bangalore, India, has installed Californiabased<br />
Imergy Power Systems’ ESP30 30 kW,<br />
<br />
solar research and testing center.<br />
The battery will store energy generated by<br />
a SunEdison 50 kW photovoltaic solar power<br />
system. The energy storage system, which<br />
provides four hours of electricity at nominal<br />
power, will reduce the need for GAT College to<br />
run diesel-fueled generators when there are<br />
power outages at night.<br />
“Today Amara Raja is among the top ten<br />
battery makers in the world. We are the largest<br />
battery manufacturers in the Indian ocean belt<br />
and also second largest automotive battery<br />
makers in the belt,” he added. According to<br />
him, Amara Raja Batteries has 27 sales and<br />
service centres and 1,500 channel partners<br />
across the country. It currently exports its<br />
products to 40 countries.<br />
Andhra Pradesh Chief Minister N Chandrababu<br />
Naidu today inaugurated the ARGC built by<br />
the Amara Raja Group in the state’s Chittoor<br />
District, about 80 kms from here. The corridor<br />
is expected to attract investments of over Rs<br />
4,500 crore in next three years, a company<br />
release said. Andhra Pradesh government<br />
will extend its cooperation to entrepreneurs<br />
those willing to invest in the state. The Chief<br />
Minister also laid foundation stone for a plastic<br />
moulding industry belonging to Amara Raja<br />
Group.<br />
SunEdison collaborated with the college to<br />
create a research and development facility at<br />
the Bangalore campus. The facility is used to<br />
study solar water pumps, storage solutions,<br />
hybrid systems, solar power plant monitoring<br />
and mounting structures.<br />
GAT College faculty and students will use the<br />
<br />
batteries operate and work in conjunction<br />
with PV solar power systems. Faculty and<br />
students will study how rural microgrids can<br />
use energy storage to optimize PV solar power<br />
system production and how a PV solar power<br />
<br />
under grid outage conditions.<br />
Source: solar Industry Magazine, June 15,<br />
<strong>2015</strong><br />
Source: Business Standard, May 07, <strong>2015</strong><br />
24
INDUSTRY NEWS<br />
Global Energy Trends and<br />
Implications for India: Solar Will<br />
Be the Most Competitive Energy<br />
Choice<br />
The global energy system is in a period of rapid<br />
transformation: electricity plays an ever more<br />
important role, as do renewables, distributed<br />
generation and electric vehicles. Energy<br />
<br />
and growing concern. New technologies and<br />
business models are disrupting and challenging<br />
a traditionally risk-averse and slow-moving<br />
industry. The International Energy Agency<br />
(IEA) has just published its new “Energy<br />
Technology Perspectives” outlining the global<br />
trends until 2050 . Here are some of the key<br />
<br />
for India.<br />
Source: IEA<br />
The Global Context<br />
According to the IEA, in a 2 degrees scenario,<br />
solar becomes the dominant electricity<br />
technology by 2040, and provides 26% of<br />
global power generation by 2050. The IEA<br />
says that already today, the “impressive<br />
deployment of renewable technologies is<br />
beginning to shape a substantially different<br />
future in supply”. As the graph shows, if<br />
a reasonable price of carbon ($ 100 per<br />
ton of CO2, commensurate with the world<br />
achieving the 2 degrees goal) is added, the<br />
cost of solar is already very competitive –<br />
and it will become more competitive over<br />
time, overtaking combined cycle gas turbines<br />
(CCGT) to become the cheapest source of<br />
energy around 2040.<br />
<br />
cheapest source of energy by 2040<br />
<br />
secondary importance in the future energy<br />
system<br />
<br />
INDIA, solar and storage will become the<br />
drivers of India’s energy future.<br />
In a high solar scenario, storage will play<br />
a role. The IEA thinks of storage mostly as<br />
being part of a larger, systemically “smart”,<br />
<br />
compete with other options for managing a<br />
renewables-heavy power supply. The other<br />
options are: stronger grids, international grid<br />
interconnections, demand-side measures<br />
25
INDUSTRY NEWS<br />
<br />
Overall, the IEA sees storage as the option of<br />
last resort, once all other options have been<br />
exploited. Currently 99% of electricity storage<br />
is pumped in hydro storage plants. In future,<br />
other forms of storage (battery, mechanical<br />
storage, etc.) will become attractive solutions.<br />
Implications for India<br />
In India, solar and storage will likely play a<br />
different and a much larger role than in the<br />
IEA’s global analysis. Due to the weakness<br />
of the grid and the limited alternative energy<br />
sources, distributed solar plus storage will<br />
be an attractive solution for end-users. As<br />
compared to the IEA’s global scenario, the<br />
Indian power market will be more consumer-,<br />
less infrastructure-driven;; more decentralized,<br />
less centralized;; and see more private sector<br />
than government sector initiatives. It will be<br />
a default (local solutions to electricity supply<br />
shortages) rather than a design market.<br />
Source: The Energy Collective, May 05, <strong>2015</strong><br />
The chronicles of Ather: Building<br />
a smart electric bike for India<br />
It was September of 2014, and Ather Energy<br />
cofounders Tarun Mehta and Swapnil Jain<br />
were running out of money. Raising venture<br />
capital was turning out to be impossible as<br />
investors weren’t willing to risk their funds<br />
on an idea as audacious as theirs: a smart<br />
electric vehicle for the Indian market.<br />
Some investors asked the IIT-Madras<br />
graduates to build an app instead, another<br />
suggested a hardware device, and a few<br />
advised doing something in the food space.<br />
Tired of rejections, the founders drew up a<br />
list of people who had succeeded in building<br />
unconventional companies out of India,<br />
<br />
They showed the Flipkart cofounder and group<br />
CEO the same presentation that had been<br />
rejected several times. “This pitch is clearly<br />
not working. What aspect of it do you think<br />
we should change?” asked Mehta, 25.<br />
“Nothing,” said Bansal without missing a beat.<br />
“If anything is going to get you the money, this<br />
will. Changing it will not help.” He promised to<br />
26
INDUSTRY NEWS<br />
introduce them to VCs, but without a product<br />
or customers in place, investors were still<br />
hesitant. The duo were running out of options<br />
and approached Flipkart cofounders Sachin<br />
Bansal and Binny Bansal again, this time to<br />
ask if they could invest a small sum in Ather.<br />
Mehta and Jain would then piggyback on the<br />
reputations of Sachin and Binny to raise the<br />
$1 million (about Rs 6 crore) they needed to<br />
sustain their one-year-old startup. To their<br />
surprise, the Flipkart founders offered to put<br />
in the entire money.<br />
There has been no looking back since. Ather<br />
raised $12 million (about Rs 75 crore) from<br />
New York-based hedge fund Tiger Global in<br />
May, which it plans to use to establish design<br />
and testing centres and an assembly line<br />
in Bengaluru. “They are young and open<br />
to experiments. I personally really liked<br />
Swapnil and Tarun and connected with them<br />
immediately. I think they have the DNA to<br />
succeed,” said Sachin Bansal.<br />
Ather’s electric scooter has a low center of<br />
gravity that can facilitate sharp turns and an<br />
aluminum chassis that makes it very light. It<br />
can also learn the riding patterns of riders and<br />
alert their kin in the case of an accident.<br />
The company’s team of 40, working out of a<br />
<br />
constantly experiments and builds prototypes<br />
aiming to put out a road-worthy vehicle by<br />
early 2016. “That was the prototype that got<br />
us funding from Sachin,” Mehta said, pointing<br />
to a discarded vehicle in the backyard of the<br />
<br />
than the existing vehicles today.” So how has<br />
Ather been able to come this far?<br />
<br />
experienced in building race cars from<br />
scratch. Product design head Arun Vinayak,<br />
24, was picked up from IIT-Madras’ FSAE<br />
team that participated in an international<br />
competition where students develop small<br />
Formula One-style race cars. “These are the<br />
guys who will achieve the goal of Make-in-<br />
India,” said R Krishna Kumar, professor in IIT-<br />
Madras’ Department of Engineering Design<br />
and an adviser to Ather, referring to the<br />
Union government’s drive to boost domestic<br />
manufacturing.<br />
Also, Ather is pitching its product as a premium<br />
vehicle: A high-performance two-wheeler<br />
delivering mileage of one kilometer for every<br />
4 paisa, and priced similar to the expensive<br />
Vespa. “They are looking to challenge the<br />
impression that evehicles are cheap and low<br />
<br />
— but the right strategy to help them grow,”<br />
said Sachin Bansal. Globally, interest in<br />
electric twowheelers is picking up. Gogoro,<br />
<br />
its Smartscooter will be available for preorder<br />
shortly and priced at about $4,100.<br />
Meanwhile, industry experts are beginning<br />
to take notice of Ather. “I am happy that<br />
there are entrepreneurs like them innovating<br />
in cleantech,” said Chetan Maini, founder of<br />
Reva.<br />
For one, it focuses on building an exceptional<br />
team, scouting for young automotive<br />
27
INTERNATIONAL<br />
NEWS<br />
Seeking to expand its business beyond electric<br />
vehicles, Tesla Motors will sell stationary<br />
batteries for residential, commercial, and<br />
utility use under a new brand, Tesla Energy.<br />
Tesla is launching the home battery business<br />
partly because it’s already making vehicle<br />
<br />
the economies of scale that come from making<br />
both. Another reason is that the market for<br />
storage is expected to grow in concert with the<br />
use of solar power. Tesla needs both electric<br />
vehicles and solar power to boom if it hopes<br />
<br />
billion battery “gigafactory” it’s building in<br />
Nevada.<br />
08<br />
Why Tesla wants to sell a battery<br />
for your home<br />
“The obvious problem with solar power is that<br />
the sun does not shine at night,” Tesla CEO<br />
Elon Musk said at the unveiling of the new<br />
batteries at the company’s design studio in<br />
Hawthorne, California, yesterday. “We need to<br />
store the energy that is generated during the<br />
day so you can use it at night.”<br />
A number of solar companies now offer<br />
batteries to accompany their solar panels<br />
(see “Solar Power, and Somewhere to Store<br />
It”). Although just a tenth of a percent of<br />
U.S. homes now get power from rooftop solar<br />
panels combined with energy storage, such<br />
systems could account for 3 percent of homes<br />
by 2018, according to Greentech Media<br />
Research.<br />
Tesla’s residential battery, called Powerwall,<br />
will be available in several months and will<br />
come in two sizes, a seven-kilowatt-hour<br />
battery system that costs $3,000 and a<br />
slightly larger 10-kilowatt-hour system for<br />
$3,500. The larger battery would keep an<br />
average-sized home running for a day. It is<br />
unclear what the cost of installation would be.<br />
Tesla expects that many sales will come from<br />
commercial customers who pay a variable rate<br />
of electricity over the course of a day based<br />
on demand. Such customers already see<br />
<br />
drawing on stored electricity during periods of<br />
peak energy demand.<br />
In the near term, the market for home energy<br />
T E SLA LAUNCHE S A STATIONA RY B ATTE RY<br />
A IME D AT COMPA NIE S WITH VA RIA BLE<br />
E L E CTRICITY R AT E S AND HOME S WITH<br />
SOLA R PA N E LS.<br />
28
INTERNATIONAL NEWS<br />
storage will depend on how states regulate<br />
homeowners’ ability to buy and sell electricity.<br />
Net metering, currently available in 43 states,<br />
allows residential customers to sell excess<br />
generation back to their utility company at<br />
retail rates. The policies are being challenged<br />
by utility companies that say it undermines<br />
their ability to recoup grid infrastructure<br />
costs. But as long as net metering continues,<br />
consumers will have little need to buy an<br />
energy storage system because they can sell<br />
the excess solar power they generate rather<br />
than store it, says Jay Stein, an analyst with<br />
energy consulting company E Source. “I<br />
<br />
batteries,” he says.<br />
globally in 2013.<br />
Such a large investment in what is still a niche<br />
market is risky, but Tesla claims that the new<br />
factory will cut battery costs by 30 percent<br />
when it begins operations, as early as 2016.<br />
<br />
enough orders for the output. By 2020, the<br />
plant will be able to produce enough batteries<br />
for half a million electric vehicles per year.<br />
Last year, Tesla sold around20,000 cars.<br />
Source: solar MIT Technology Review, May<br />
04, <strong>2015</strong><br />
Most utilities that offer net metering, however,<br />
also allow residential customers to buy and sell<br />
electricity at rates that vary throughout the<br />
day based on demand. Battery storage would<br />
allow such people to maximize the value of the<br />
electricity they sell back to the utility. “There<br />
are some arbitrage values emerging,” says<br />
Karl Rábago, executive director of the Pace<br />
Energy and Climate Center in White Plains,<br />
New York. “If I could export selectively, using<br />
a storage device, I might beget higher value<br />
for my generation.”<br />
Home energy storage will make more<br />
sense in the years to come. Residential and<br />
commercial solar-plus-storage systems will<br />
offer a clear cost advantage over electricity<br />
from the grid throughout the United States<br />
by 2030, according to a recent report by the<br />
Rocky Mountain Institute, an energy research<br />
and consulting group.<br />
Tesla’s Nevada gigafactory, which it’s building<br />
with Panasonic, will have an annual production<br />
capacity of 35 gigawatt-hours by 2020, more<br />
than all the lithium-ion batteries produced<br />
29
INTERNATIONAL NEWS<br />
Integrated Energy Storage: An<br />
Answer to Addressing the Duck<br />
Curve?<br />
AS UTILITIES AROUND THE WORLD GRAPPLE<br />
WITH DECLINING UTILISATION FROM<br />
WIDESPREAD ADOPTION OF DISTRIBUTED<br />
SOLAR, INTEGRATED STORAGE SOLUTIONS<br />
BEHIND-THE-METER MAY FLATTEN THE LOAD<br />
CURVE AND CREATE VALUE FOR CUSTOMERS<br />
AND UTILITIES ALIKE.<br />
quick search of the internet reveals numerous articles<br />
outlining the challenges posed by accelerated<br />
uptake of distributed renewables, in particular<br />
changing utility load curves and the much-maligned<br />
“duck curve.” Yet, for all the technical and economic<br />
challenges posed by solar widening the wedge<br />
between typical day-time energy consumption<br />
and evening peak consumption, distributed energy<br />
storage — when paired with an intelligent integration<br />
<br />
duck curve and increase the overall value delivered<br />
to participants across the system.<br />
A<br />
Facing issues such as those characterized by<br />
the duck curve, agile, forward-thinking utilities<br />
are coming to understand that one key to future<br />
prosperity lies in adopting new technologies such<br />
as integrated energy storage which can help them<br />
balance customers’ increasing desires to install<br />
distributed generation with the need for better<br />
leveraging of existing utility assets.<br />
So, exactly what role can integrated storage play<br />
<br />
<br />
consumers?<br />
Let’s take the example of a typical 3-MW distribution<br />
<br />
<br />
Impact of Integrated Energy Storage on Duck Curve;<br />
3MW Feeder<br />
Curves for successive years assume continued solar<br />
uptake consistent with historical growth in solar<br />
deployments. Unabated, we can see a widening of<br />
the gap due to reduced daytime demand, uptake<br />
of solar PV and evening demand peaks. These<br />
30
INTERNATIONAL NEWS<br />
factors combine and result in a worsening of asset<br />
utilization and load factor; from the years 2012 to<br />
2020 load factors decline by 19 percent on a relative<br />
basis.<br />
<br />
indicative feeder deployed solar integrated storage<br />
(SIS), optimized for the timing and consumption<br />
of their stored capacity, the peaks and troughs<br />
<br />
load factor increases by 17 percent and the ramp<br />
rate for evening peak is reduced by 59 percent,<br />
demonstrating how deployment if integrated storage<br />
can enable far superior utilization of the assets and<br />
<br />
Hidden in the above numbers, though, is another<br />
potentially important consideration for utilities<br />
— deferral of transmission and distribution<br />
infrastructure costs.<br />
The outlook for utilities faced with the duck chart<br />
phenomenon — increasing network costs and<br />
declining demand — is troubling and an unenviable<br />
strategic position for any business. But what if<br />
customer-sited energy storage could be aggregated<br />
and orchestrated in concert through an integrated<br />
<br />
and minimizes, or avoids, unnecessary grid<br />
expenditures?<br />
Moving excess solar generation to peak times<br />
through an orchestrated energy storage platform<br />
<br />
chain including avoided network and generation<br />
augmentation, reduced losses and improvements in<br />
voltage and power quality.<br />
Demand peak reduction is not the only issue<br />
of concern, though. Excess residential solar<br />
generation causes voltage instability and power<br />
quality problems which utilities also have to invest<br />
resources in order to deal with. These investments<br />
include additional control and measurement<br />
equipment, transformers, static compensators and<br />
transmission line upgrades. As illustrated above,<br />
applying intelligent integrated energy storage aids<br />
in smoothing the curve and reducing demand peaks<br />
to prior year levels. This enables utilities to defer<br />
corrective costs and focus their investment where<br />
<br />
energy consumer, customers could be rewarded<br />
<br />
demand through a lower utility cost base and thus<br />
lower tariffs.<br />
Customer-sited, Utility-controlled Solutions<br />
<br />
address the duck curve with storage technology,<br />
Sunverge subscribes to the belief that intelligent<br />
energy storage assets located on the customer-side<br />
of the meter, but utility-controlled, offers a most<br />
<br />
address high penetrations of renewables.<br />
To be effective, such systems must allow storage<br />
assets to be dynamically aggregated, tailoring<br />
<br />
their control orchestrated in concert as if they were<br />
a single Virtual Power Plant. Expanded further, such<br />
aggregations of behind-the-meter energy storage<br />
might serve different purposes for the utility at any<br />
given time; some may be orchestrated to provide<br />
voltage support at the end of a long feeder while<br />
others can be controlled to provide frequency<br />
regulation or other ancillary services.<br />
To accommodate integration with utility IT<br />
infrastructure, data analytics platforms, smartgrid<br />
and microgrid system architectures, and smart home<br />
energy management systems, energy storage control<br />
systems must be intelligent and, ideally, cloudbased<br />
so as to allow for seamless communication<br />
across multiple technology platforms and real-time<br />
control of grid assets according to utility rule sets.<br />
Already a proven approach to improving<br />
the safety, reliability and performance of<br />
31
INTERNATIONAL NEWS<br />
the grid, customer-sited integrated energy storage<br />
platforms offer huge promise for cost-effectively<br />
addressing the issues represented by the duck<br />
curve as well as a host of other challenges faced by<br />
<br />
along the energy supply chain.<br />
<br />
of cell stack and energy storage tank avoids any<br />
<br />
<br />
easy implementation without any battery safety<br />
<br />
Multi-hour usage capacity and robust technology<br />
Redflow enters the European<br />
energy storage market with flow<br />
battery<br />
REDFLOW EUROPE GMBH (MUNICH, GERMANY),<br />
PROVIDER OF ENERGY STORAGE FLOW<br />
BATTERIES, HAS ANNOUNCED ITS ENTRY INTO<br />
THE EUROPEAN MARKET. REDFLOW IS THE FIRST<br />
ENERGY STORAGE COMPANY TO ENTER LARGE-<br />
SCALE COMMERCIAL MANUFACTURING THROUGH<br />
GLOBAL GIANT, FLEXTRONICS, THE COMPANY<br />
Source: Renewable Energy World, April 09, <strong>2015</strong><br />
“As we expand worldwide, we know our battery<br />
technology is ideal for applications required by the<br />
European market, such as on and off grid remote<br />
rural power, telecommunications BTS sites, utility<br />
energy, commercial applications, and renewable<br />
<br />
cost-effective and innovative technology provides<br />
<br />
battery technologies, such as high energy density<br />
with a small footprint, 100 percent depth of discharge<br />
usage capacity, no active cooling required, and<br />
inherently safe design.”<br />
EMPHASIZES.<br />
R <br />
multi-hour use such as time of day energy shifting<br />
for use during peak time periods. Thus, they resolve<br />
the intermittency inherent to renewable energy.<br />
<br />
tolerance allows up to 50 degrees Celsius. With no<br />
<br />
<br />
100 percent depth of discharge, which is ideal for<br />
unstable grids and renewable energy sources.<br />
“This characteristic prevents battery damage<br />
from power outages, unlike traditional battery<br />
<br />
shelf life fully discharged with no maintenance<br />
required. In addition, no trickle charge is necessary<br />
<br />
the energy throughput of its products,” reads the<br />
press release.<br />
Source: Solar Server, June 25, <strong>2015</strong><br />
Inherently safe and smart design<br />
Zinc-bromide electrolyte is water-based and<br />
<br />
addition, the intelligent battery technology selfmanages,<br />
self-protects, and informs via remote<br />
32
ENERGY STORAGE INDIA<br />
2014<br />
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Join IESA to gain insights and access to one of the fastest<br />
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IESA<br />
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IESA Members<br />
Contact:<br />
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Executive Director, India Energy Storage Alliance<br />
www.indiaesa.info<br />
Email: contact@indiaesa.info<br />
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