Solar PV and wind are forecast to account for 95 per cent of all renewable capacity additions through 2030

Byline: Shekhar Singal, Managing Director, Eastman Auto & Power

Have you heard of a phenomenon described as ‘when the sun doesn’t shine, and the wind doesn’t blow’? This refers to a situation when the sun and the wind fail to provide energy, creating a compound energy drought. Such a drought means renewable energy sources cannot generate power, leading to energy insecurity. Therefore, as renewable energy systems become commonplace, it is pertinent that we prepare for all eventualities, including periods when the sun doesn’t shine and the wind doesn’t blow. The good news is that advancements in energy storage— key to meeting future demand and to energy security—are on the right track.

Global Energy Landscape
Sustainable energy systems don’t just lie in the future; they’re already commonplace in the global energy landscape. Today’s generation understands that the shift toward sustainable energy systems is critical to meeting current energy requirements and for the energy security of future generations.

According to the International Energy Agency (IEA), renewable energy’s share in global power generation is expected to increase to 46 percent by 2030, up from 30 percent in 2023. Solar PV and wind are forecast to account for 95 per cent of all renewable capacity additions through 2030. This addition is driven by solar PV and wind’s lower generation cost compared to those of fossil fuel and non-fossil alternatives, coupled with ongoing policy support .

In the interim period, as the transition toward sustainable energy systems takes place with older polluting systems going offline and newer renewable systems becoming active, ensuring energy security is a priority. Energy storage systems are crucial to energy security during this transition period and beyond. They serve as buffers for outages and allow for renewable energy sources to be used more consistently. These storage systems store surplus energy generated from renewable sources like solar and wind, ensuring a steady and reliable energy supply even when the wind isn’t blowing, and the sun isn’t shining!

Trends & Adoption
While today pumped storage hydropower, or PSH, accounts for over 94 percent of the world’s long-duration energy storage capacity followed by thermal, mechanical, and battery storage; however, from 2015 to 2024, 90 percent of all new energy storage deployments have been in the form of batteries . Battery-based energy storage is widely

recognized as the most efficient way to store and deliver energy generated from renewable sources, which is why the global solar energy storage battery market is projected to grow from USD 4.40 billion in 2023 to USD 20.01 billion by 2030, growing at a CAGR of 24.2 percent. As more battery storage for storing renewable energy becomes available, the need for conventional fossil-fuel powered sources will decrease.

Solar Based Energy Storage Solutions
This shift to storing energy in batteries is well underway. In India, solar based energy storage systems are gaining ground, and the future of these solutions looks very bright.

According to the International Energy Agency’s India Energy Outlook 2021, India can achieve 140-200 GW of battery solar based energy storage capacity by 2040 – nearly 47 per cent  of India’s total power generation capacity today – making the country the global leader in the segment . These energy storage systems are key to the proliferation of renewable energy, including solar power, in India.

Benefits
In addition to providing energy reliably and ensuring energy security, energy storage solutions will play a vital role in meeting India’s ambitious climate commitment of reducing emissions by 33-35 per cent from 2005 levels by 2030 and achieving 40 percent non-fossil fuel-based electricity generation within the country’s energy mix .

The government, already committed and focused on transitioning India’s energy landscape towards sustainable sources, is also taking the right tactical steps to ensure the success of this shift by focussing on energy storage systems. It recently announced plans to integrate battery storage in new solar and wind projects by introducing an initial storage requirement equivalent to 10 percent of a renewable energy plant’s capacity. This percentage will be increased over time, as it should be.

Meanwhile, India has added an impressive 1.1 GW of rooftop solar capacity from January to June 2024, representing a 26 percent increase from the 873 MW installed in the same period last year which will continue to spur demand for energy storage and contribute significantly to reducing the country’s carbon footprint.

Prospects of energy storage solutions in India’s residential and small commerce sectors also appear promising. Declining Li-ion battery costs are making home energy storage systems more affordable. Coupled with the impending implementation of time-of-use (TOU) or time-of-day tariffs, these systems offer significant potential for cost savings. By charging batteries during off-peak hours when electricity is cheaper and discharging during peak hours, consumers can significantly reduce their electricity bills. This not only benefits individual consumers but also helps to stabilize the grid by reducing peak demand.”

In the decades ahead, the transition to renewable energy will happen in concert with an increased demand for energy storage solutions, leading to the creation of an integrated and green energy ecosystem that will drive India and its people closer to a sustainable and energy-efficient future. During this decades-long transition, energy storage solutions will ensure consistent and reliable energy supply when the sun doesn’t shine, and the wind doesn’t blow.