Why India Should Adopt Thermal Energy Storage System

T S Gowthami , Kajol, Dhilon Subramanian

India is aiming to achieve 50% of its electricity needs from renewable sources by 2030 to support its net-zero objectives. The transition to sustainable energy systems heavily relies on energy storage, as renewable sources, like wind and solar, are inherently intermittent and their availability varies with weather conditions and time of day. Energy storage systems are essential in overcoming this challenge. They store energy produced during periods of high availability and releasing it during periods of low availability, thus ensuring consistency in power supply.

Thermal energy storage is a cost-effective, efficient, and sustainable storage system that can be used in a variety of applications. Its ability to shift energy use from peak to off-peak periods makes it a valuable tool for reducing energy consumption. With its many benefits, thermal energy storage is becoming an increasingly popular solution for energy storage needs around the world.

According to a report published in 2020, the global thermal energy storage market was valued at USD188 million in 2020 and is expected to reach USD 369 million by 2025, growing at a compound annual growth rate (CAGR) of 14.4% between 2020 and 2025. The International Renewable Energy Agency predicts that the global market for thermal energy storage could triple in size by 2030, from 234 gigawatt hours (GWh) of installed capacity in 2019 to more than 800 GWh. Thermal energy storage technologies are gaining traction in the utility sector, particularly in conjunction with concentrated solar power (CSP) systems, as it helps reduce curtailment of renewable energy sources and provides grid flexibility.

WRI India organized a webinar on 'Thermal Energy Storage and its potential in India' which provided valuable insights into the potential of this technology and revolutionize the way we store and utilize energy. Experts shared their insights on the latest developments, innovations, and real-world applications of this technology. From the discussions, it became apparent that thermal energy storage is rapidly gaining prominence as a key enabler of sustainable energy systems.

• Dr. Dibakar Rakshit from IIT Delhi highlighted the recent R&D in TES and future pathways. He also spoke about TES technologies such as Sensible heat storage and Latent heat storage that are most commercially viable TES technologies in India, since they have economic benefits, reduce energy cost, and make renewable energy integration easier.
• Dr. Nitin Goel opined that better policy support is needed from government such as the provision of incentives and subsidies for TES deployment to help reduce the high upfront costs of TES systems and encourage their widespread adoption and promotion through applications in agriculture sector, cold supply chain solutions and delivering affordable, clean, and sustainable energy storage solutions.
• Ankit Jhanwar from PLUSS Advanced Technologies highlighted innovative business models such as Energy storage as a Service (ESaaS), that can enable wider access to TES systems and increase their affordability by offering them as a service, rather than requiring upfront investment as initial capital costs of implementing TES systems in India are often very high, making it difficult for many organizations to justify the investment (payback period)
• Zafer Ure, Environmental Process Systems deliberated on how with the penetration of renewables in the nation's energy mix, thermal energy can play a critical role for India's Renewable Energy commitments. Countries such as US and Canada have implemented policies like subsidies, tax credits, and feed-in tariffs to promote the adoption of TES systems. India can learn from these policies and implement similar measures to incentivize the deployment of TES systems. Many countries have established knowledge sharing networks to share best practices and learnings on energy storage deployment.

The webinar highlighted the importance of research and development in driving innovation and reducing the costs of TES systems, thereby making them more competitive with other energy storage technologies. The session provided valuable insights into the various applications of TES, including its use in buildings, industrial processes, power generation, and the potential benefits it can offer in terms of reducing energy costs and carbon emissions. The session also emphasized the need for collaboration among stakeholders to develop a comprehensive roadmap for promoting TES in the country, with a focus on R&D, manufacturing, policy, and business model innovation, reduce costs, and increase accessibility.