Monday, June 24, 2024

ICRA says falling battery prices to assist Indian storage market – pv journal International


Battery costs hit an all-time low in India in 2023, led by average uncooked materials costs amid rising manufacturing throughout the board, based on credit standing company ICRA.

From pv journal India

ICRA mentioned it expects the current decline in battery prices to drive the adoption of battery vitality storage system (BESS) tasks in India. BESS and pumped hydro storage tasks at the moment are the dominant vitality storage choice in India.

ICRA mentioned it expects the share of technology from renewable vitality, together with giant hydro, to rise to almost 40% of nationwide technology by fiscal 2030, from lower than 25% at current, pushed by of the big capability additions at present underway. Achieving such a excessive share would require the event of vitality storage programs to handle the intermittency related to wind and solar energy.

Energy storage programs additionally play a job in bettering grid stability, offering backup companies and shifting peak masses. Ever because the Ministry of Power launched the bidding pointers for BESS tasks, there have been a number of bids referred to as by central nodal businesses and state distribution utilities. The fare beneath these bids is mounted and payable, primarily based on availability and round-trip effectivity.

“The found tariff beneath BESS tenders has greater than halved from INR 10.84 lakh ($12,987)/MW/month within the first Solar Energy Corp. of India (SECI) tender in August 2022 to INR 4.49 lakh/MW/month in Gujarat’s newest tender in March 2024, reflecting the discount in battery costs and bettering competitiveness of such tasks,” mentioned Girishkumar Kadam, senior vice chairman and group head of company rankings for ICRA. “The viability of those tasks stays centered on the capital price of BESS. Based on common battery prices of $140/kWh seen in 2023 together with related taxes/duties and steadiness of plant prices, capital prices are anticipated to be within the vary of $220/kWh to $230/kWh.

The discount in battery prices within the decade to 2021 has helped scale back the price of vitality storage and the adoption of BESS tasks worldwide. While the costs elevated in 2022, they decreased in 2023 to the bottom time, led by a average worth of uncooked supplies. Cheaper battery costs are key to larger adoption of BESS tasks, ICRA mentioned.

“The implementation dangers and gestation interval for BESS tasks stay comparatively low in comparison with PSP hydro,” Kadam mentioned. “In basic, a steady discount in battery costs and a comparatively low gestation interval for these tasks is anticipated to assist their better adoption for vitality storage, going ahead.”

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