Centre explores battery storage for thermal power to offset renewable volatility

The power ministry is examining the use of battery energy storage systems (BESS) for thermal power plants, according to two government officials cited by Moneycontrol. This will address rising operational costs caused by frequent ramping down of thermal units to accommodate renewable energy.

So far, energy storage solutions have been targeted at renewable energy projects, which are inherently variable. BESS helps smooth this variability, especially during non-solar hours. However, officials told Moneycontrol that the ministry is now exploring how BESS can also support coal and gas-based plants, which are increasingly required to operate at partial loads due to surges in solar and wind generation during the day.

The Central Electricity Authority (CEA), which advises the Union government on power policy and planning, is evaluating how storage integration could help thermal plants maintain efficiency despite these fluctuations.  

Power producers, including NTPC Ltd, have raised concerns over reduced plant load factors (PLFs), which spread fixed costs over fewer electricity units, increasing the cost per unit. 

India has already started mandating storage components in new renewable energy tenders. Expanding this to thermal assets marks a shift in how the grid is expected to respond to high levels of renewable penetration.