Loading...

Storage tenders pick up in India


28 February 2019 | Jyoti Gulia

Storage tenders pick up in India

After years of anticipation, grid scale storage tenders have finally started picking pace in India. Seven tenders with a total storage capacity of 84 MWh (with 78 MW of solar PV capacity) have been issued in the last one year. These tenders have been issued by SECI, NTPC and NLC predominantly in remote areas of Jammu & Kashmir, Lakshadweep, Himachal Pradesh and Andaman & Nicobar Islands. There is huge market interest in storage tenders but participation in tenders is still limited because of specific eligibility conditions requiring minimum construction or operational experience and/ or domestically sourced content. Mahindra Susten, L&T, BHEL, Hero, S&W, IBC Solar, Exide have been amongst the most active bidders so far. There has also been some concern from the private sector that storage specifications are not clearly defined. But we believe that this aspect is improving slowly as awareness of storage technologies is improving gradually and procurement authorities are beginning to define specifications in more detail. 

There have also been two new wind-solar hybrid tenders (160 MW and 600 MW) issued in Andhra Pradesh with optional storage component. India’s current grid-scale commissioned storage capacity is only 10.75 MWh. AES and Mitsubishi inaugurated a 10 MW, 10 MWh facility in Delhi. Other relatively small systems are located in remote villages in West Bengal (1.73MW), north-east (6.85 MW) and Lakshadweep islands (2.19 MW). The market holds huge potential particularly as the growing share of variable renewable energy – up from 5.6% in 2014 to 10.6% in 2018 – creates a formidable challenge in maintaining grid stability. Because of environmental and commercial concerns associated with traditional storage systems including pumped hydro, we believe that battery-based energy storage systems would dominate the market. The Government of India has been planning to issue a National Energy Storage Mission along the lines of National Solar Mission with specific targets for capacity deployment, local manufacturing and policy support. It is expected that announcement of NESM – due imminently – would provide a major boost to the market.


Recent reports

India Corporate Renewable Brief | Q4 2023

India Corporate Renewable Brief | Q4 2023

This report provides an update on key trends and developments in the corporate renewable market including capacity addition, key players, policy & regulatory issuance, financing, PPA tariffs and other market trends.

India PV Module Intelligence Brief | Q4 2023

India PV Module Intelligence Brief | Q4 2023

This report captures quarterly trends in module demand and supply, import and domestic production volumes, supplier market shares, break-up by technology and rating, global market scenario, pricing trends across the value chain, key policy developments and market outlook.

India Solar Compass | Q4 2023

India Solar Compass | Q4 2023

This report provides a detailed update of all key sector developments and trends in the quarter – capacity addition, leading players, tenders and policy announcements, equipment prices, financial deals and other market developments. It also provides market outlook for the next two quarters.

Inter-state OA — opportunities and challenges

Inter-state OA — opportunities and challenges

Inter-state transmission system (ISTS) open access (OA) renewable market is growing strongly on the back of multiple drivers including a waiver from ISTS charges together with decarbonisation pressure on corporates and streamlined transmission connectivity approval process. However, the ISTS route savings are viable only for projects commissioned by June 2026 (at least 75% ISTS charge waiver).

India Corporate Renewable Brief | Q3 2023

India Corporate Renewable Brief | Q3 2023

This report provides an update on key trends and developments in the corporate renewable market including capacity addition, key players, policy & regulatory issuance, financing, PPA tariffs and other market trends.

India PV Module Intelligence Brief | Q3 2023

India PV Module Intelligence Brief | Q3 2023

This report captures quarterly trends in module demand and supply, import and domestic production volumes, supplier market shares, break-up by technology and rating, global market scenario, pricing trends across the value chain, key policy developments and market outlook.

To top