Study advocates battery integration for renewable energy

Battery Storage to Reduce Energy Costs

KARACHI: As the government considers slashing solar power prices to nearly half at Rs11 per unit for individual purchases via net metering, a new study recommends integrating batteries with renewable energy projects. This approach would store surplus generation during low-demand hours and utilise it during peak hours, reducing costs to an estimated 6 to 8 cents per unit.

Using stored energy from batteries during peak load hours could significantly lower consumers’ electricity bills. Power consumption from the national grid has surged to over Rs60-70 per unit, including capacity payments and taxes. More on consumer-driven energy trends is available at Renewables First insights.

Study Findings and Recommendations

The study, titled “Integrating Battery Storage with Renewables: A Techno-economic Analysis (on-grid and off-grid solutions),” was conducted jointly by Renewables First (RF) and the Policy Research Institute for Equitable Development (PRIED). It finds that combining battery energy storage systems (BESS) with solar and wind power could bring electricity prices down to 6–8 cents per unit while also providing electricity to communities far from the national grid.

Pakistan’s electricity demand is highly variable, with peak demand rising over the past decade while base demand remains largely stagnant. Ignoring this variability has led to an installed generation capacity nearly double what is actually utilised, burdening consumers and highlighting the need for better policy planning.

Advantages of BESS Integration

The study explores the potential of renewable energy technologies (REs) integrated with BESS. “Energy storage technology using batteries has already demonstrated commercial viability, and estimates indicate the BESS market could reach $120–150 billion by 2030,” according to the study, citing McKinsey’s analysis on battery energy systems.

BESS offers multiple advantages: improved frequency regulation compared to thermal power spinning reserves, reduced renewable energy curtailment, peak charge avoidance for consumers, and the ability to store surplus power for later use. Integrating batteries with REs also supports environmental sustainability by reducing reliance on fossil fuels, providing peak support, avoiding costly fuel contracts, and lowering consumer tariffs.

Policy and Market Implications

The study highlights the need for government policies that enable market players, particularly by addressing barriers to the Competitive Trading Bilateral Contracts Market (CTBCM). Industrial, commercial, and bulk power consumers are increasingly investing in off-grid solutions, which could reduce demand for the national grid.

Ubaid Ullah Khan, a researcher at Renewables First and one of the study’s authors, noted that integrated battery solutions provide consistent and affordable power for industrial consumers. He also highlighted that combining renewable energy sources with batteries during peak demand could save the national exchequer millions of dollars annually.

Industry Collaboration to Accelerate Solar Adoption

In parallel, solar companies Trina Solar and Zi Solar have signed a memorandum of understanding (MoU) to advance nationwide solar adoption. They plan to deploy 120 MW of solar energy, expected to generate 175 GWh per year and achieve carbon savings of approximately 177,425 tonnes annually. Related insights are available at Renewables First coverage.

This collaboration marks a significant step in accelerating solar adoption and demonstrates the commitment of both companies to building a sustainable energy future for Pakistan.

Original article: Tribune.com.pk