Study advocates battery integration for renewable energy

As the government considers slashing solar power prices to nearly half at Rs11 per unit for individual purchases via net metering, a research study suggests integrating batteries with renewable energy projects. This integration would store surplus generation during low demand hours and utilise it at peak hours, estimated at 6 to 8 cents per unit. Utilising stored energy from batteries during peak load hours could significantly reduce consumers’ energy bills. Power consumption from the national grid has surged to over Rs60-70 per unit, including capacity payments and taxes. According to a statement on the study titled “Integrating Battery Storage with Renewables: A Techno-economic Analysis (on grid and off-grid solutions),” jointly conducted by Renewables First (RF) and the Policy Research Institute for Equitable Development (PRIED), battery energy storage systems (BESS) combined with solar and wind power could decrease electricity prices to as low as 6-8 cents per unit. Additionally, they can provide electricity to communities living far off the national grid. The study reveals that Pakistan’s electricity demand is highly variable, with peak demand consistently increasing over the past decade while the base demand sees minimal growth. Ignoring this fact when planning electricity generation has resulted in an installed generation capacity nearly double the utilised capacity. This disparity burdens consumers and prompts reflection on decision-making and policy formulation. The study aims to address variable demand patterns in Pakistan by exploring the potential of renewable energy technologies (REs) coupled with Battery Energy Storage Systems (BESS). “Energy storage technology using batteries has already demonstrated its commercial viability and estimates show that BESS market is expected to reach between $120-150 billion by 2030 as per McKinsey’s article on Battery energy systems,” according to the study. One key advantage of BESS is improved frequency regulation compared to traditional spinning reserves from thermal power plants, reducing RE curtailment. Likewise, BESS can also provide peak charge avoidance to consumers during on-grid peak consumption intervals and store surplus power for later use, the study argues. Integrating BESS with REs promotes environmental sustainability by reducing dependence on fossil fuel-based power generation. This strategic integration offers peak support, avoids expensive fuel contracts, and lowers consumer tariffs, it said. The statement on the study highlights the government’s need to create an enabling environment for market players, particularly by removing hurdles facing the Competitive Trading Bilateral Contracts Market (CTBCM). Major industrial, commercial, and other bulk power consumers are prioritising and investing in off-grid solutions, leading to a potential loss of demand and market share for the national grid. Ubaid Ullah Khan, a researcher at Renewables First and one of the study’s authors, highlighted the assurance of a consistent and inexpensive power supply to industrial consumers with integrated batteries. He also noted that using renewable energy sources with batteries during peak demand periods could save the national exchequer millions of dollars. Solar energy adoption In another statement, other solar companies announced that Trina Solar, a global leader in solar photovoltaic (PV) and smart energy solutions, and Zi Solar, a prominent engineering, procurement, and construction (EPC) company, have signed a memorandum of understanding (MoU) to collaborate on advancing solar energy adoption nationwide. Their focus is on deploying 120 MW of solar energy, which is expected to generate 175 GWh of energy per year and result in carbon savings of approximately 177,425 tonnes annually. This collaboration represents a significant step forward in advancing solar energy adoption, underscoring the shared commitment of the two companies to create a sustainable energy future. Published in The Express Tribune, May 9th, 2024. Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.  

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