
Power sector in the state of Andhra Pradesh would be exposed to new technology by introducing battery storage power projects. Traditionally, the state is using solar, wind, and pumped storage power projects. The center has approved a total storage capacity of 1,000 MW for battery storage power projects to be established in the state. These will be executed by the NHPC, which will soon invite tenders and sign agreements with chosen companies and discoms. Officials say these will come on stream in 18 months. The cost is estimated to be around ₹2.6 crore per megawatt-hour. The total cost for a 2,000 MWh battery storage project will be around ₹5,200 crore.
Key Features and Benefits
Capacity and Operation
- Approved Capacity: The project was approved for 1,000 MWh.
- Storage Capacity: The facility will run through two cycles of two hours each, meaning the plant will be able to store 2,000 MWh of electricity.
- Objective: Electricity will be stored during peak demanding periods; morning and evening periods.
- Cost Savings: This would save the electricity cost at high peak hours rates. The average electricity cost would come down from ₹10 to ₹5.30 per unit (including input electricity).
Viability Gap Fund Support
- The Centre will support ₹27 lakh per megawatt-hour through the Viability Gap Fund.
- Fixed charges would be around ₹2.60 per unit. The average cost of input electricity would be around ₹2.70 per unit.
- After VGF subsidies, the unit cost is expected to be ₹5.30, reducing the burden on discoms by 70 paise per unit.
Advantages of Battery Storage Projects
- Grid Stability: Renewable energy sources like wind and solar can experience fluctuations during the day. Battery storage ensures a stable grid frequency of 49.9–50.05, preventing fines of ₹20–₹40 per unit imposed for overusing the national grid.
- Cost Benefit: This power projects could help the electricity distribution companies avoid penalty worth ₹180 crore a year by using this technology of cost-effective storage.
- Relief for Local Networks: These battery storages help the electricity companies save extra network infrastructures that require at times to accommodate short term surges of power demand.
- Helps Grid Integration: This projects facilitate integration of renewable sources without disturbing the stability of the grid.
Proposed Project Locations
- Kuppam: A 100 MW battery storage system will be built to store surplus energy generated from the solar panels installed under a pilot scheme for residential homes.
- Godavari Districts: A 100 MW project near Godavari Gas Private Limited (GGPL) will sort out occasional low voltage issues in the area.
- Mylavaram (Jammalamadugu): A 400 MW battery storage facility will be developed to support 750 MW of solar power projects that otherwise require special grid connections.
- Gani (Kurnool District): A 400 MW Battery Storage project is to be located within the existing solar park with available land
Future Prospects
These battery storage projects are expected to transform the power sector of Andhra Pradesh by reducing dependency on high-cost electricity during peak hours, stabilizing the grid, and supporting the integration of renewable energy sources. With the Center's financial support through VGF and NHPC's implementation, the state is on track to become a leader in battery storage technology.