The Solar Energy Corporation of India (SECI) is set to launch a tender for a 500 megawatt (MW) solar-thermal storage project by the end of this financial year. SECI’s Chairman, R P Gupta, announced this on Wednesday.
This will be the first time SECI is focusing on concentrated solar thermal power storage. The move aims to tackle the problem of inconsistent energy supply from renewable sources.
“We plan to issue the tender for solar thermal power storage by the end of this financial year,” Gupta said. He mentioned that initial projects might need incentives. Details of the tender are still being finalized. Gupta is confident that storage prices will be competitive with other continuous energy solutions.
The tender will involve using concentrated solar technology to generate steam, which will then run turbines, providing continuous energy.
This initiative comes as the government works to increase the country’s energy storage capacity and stabilize the grid. Last year, the government announced a scheme to support battery energy storage systems with funding to develop 4,000 MWh capacity by 2030-31. The industry expects storage prices to decrease with these advancements.
“New developments will bring down prices. Energy storage is crucial for grid stability and efficient use of renewable energy,” said Jishnu Barua, Chairperson of the Central Electricity Regulatory Commission.
Besides battery storage, the government is also promoting pump storage projects. The cost of power from pump storage is around Rs 4.7 per unit, compared to Rs 6.6 per unit from battery storage.
To reach the target of 425 GW renewable energy capacity by 2030, along with 19 GW of pump storage and 42 GW of battery storage, significant investment is needed. CareEdge Ratings estimates this will require Rs 14 trillion in additional debt financing.
With power demand growing at 6-7% annually, the grid faces operational challenges. Ghanshyam Prasad, Chairperson of the Central Electricity Authority, highlighted recent disturbances affecting up to 3,700 MW. “We need to keep adding renewable energy and ensure the grid remains stable,” he said. “Storage will play a big role, especially during peak load times in the evening.”