Establishment of an autonomous SSE activity likely to be delicensed
Union Energy Minister RK Singh said the Energy Storage System (ESS) will be an integral part of the power system under the Electricity Act and the establishment of a standalone ESS could be considered an unlicensed activity, an official statement said on Thursday (January 27).
In a meeting with renewable energy developers, industry and various government officials, Singh discussed elements of the draft energy storage system policy to promote the creation of large-scale storage systems. Across the country.
The policy aims at the creation of a technology-independent storage system along the value chain of the electricity sector, viz. at the generation, transmission and distribution levels, the Ministry of Energy noted in one version.
Singh called for active industry participation in establishing storage systems and associated manufacturing industries at the national level in the country.
He also interacted with Principal Secretaries and CMDs of renewable energy rich states including Punjab, Rajasthan, Maharashtra, Andhra Pradesh, Karnataka, Telangana, Kerala, Tamil Nadu, Gujarat and Madhya Pradesh regarding the draft policy on Thursday.
States welcomed the political initiative taken by the government for the promotion of storage systems in the country. They also highlighted their side’s efforts to promote pumped storage projects and the battery energy storage system, according to the statement.
Singh stressed the need to establish large-scale storage systems in the country.
Highlighting elements of the proposed policy, Singh said storage will now be part of the revolving purchase obligation.
He also said that the reduction of renewable energy will be penalized under the provisions of the law.
Under the proposed policy, the ESS Developer will be granted Interstate Transmission System connectivity under General Grid Access (GNA), which will allow it to sell or buy power in any part of the country.
The amount of ESS included in 24-hour renewable energy (RTC) will be counted as a renewable purchase obligation (RPO) for storage.
In addition, Renewable Energy Certificates (REC) can be issued to ESS.
Under the proposed policy, discoms or obligated entities may set up their own storage or procure storage capacity or lease storage space from public or private ESS developers.
The policy proposes that the transmission cost for the BR be removed both at the time of storage billing as well as at the time of the sale of the stored BR.