India's Renewable Energy Path: Can Battery Storage Reduce Coal Dependence?

A new report suggests India might limit new coal plants by 2032 if battery-storage costs fall by 15% annually. Currently, 75% of India's electricity comes from coal. To achieve net-zero emissions by 2070, the country needs to increase renewable energy use. Declining battery costs are vital for this transition.

India may sidestep building new coal plants and could keep its coal capacity steady through 2032 if the cost of battery-storage systems decreases by 15% annually, according to a new report.

Currently, around 75% of India's electricity is coal-generated. However, meeting the nation's target of net-zero emissions by 2070 necessitates a shift towards renewable energy sources such as solar and wind.

The crux of the issue is that solar and wind power plants only produce electricity intermittently, necessitating energy-storage systems for consistent supply. The report by Ember and TERI states that if battery storage costs keep declining at the current rate of 7% annually, India's coal generation will stabilize until 2032, although additional coal capacity might still be required during non-solar hours.

Slow storage growth could hamper renewable energy expansion, especially if India's solar share in the power mix exceeds 25%. Presently, solar power constitutes about 7% of the nation's total power generation.

If battery storage costs fall by 15% yearly, India could potentially restrict its coal capacity to the planned 260 GW by 2032. The report also notes that faster battery cost reduction could lead to renewable energy fulfilling 83% of daytime electricity demand by 2032, but only 38% of non-solar hours' demand due to current storage limitations.

New coal capacity presents risks and challenges. Increased reliance on renewable energy would make new coal plants susceptible to underutilization if battery costs drop more swiftly than expected.

Energy-storage solutions are pivotal for decarbonizing electricity generation, emphasized A K Saxena from TERI. Battery costs must fall significantly, by more than 50% from current levels, for India to avoid new coal additions entirely.

Neshwin Rodrigues from Ember highlighted the need for strategies to shift solar generation to non-solar hours and emphasized the importance of securing financing and enhancing coal plant flexibility. Nayeem Khan from TERI added that accelerated growth in renewables and cost-competitive low-carbon technologies like BESS are essential for minimizing new coal capacity.

(With inputs from agencies.)