One of the largest private Indian power transmission firms, Sterlite Power Grid Ventures Ltd, expects energy storage to open up US$35 billion worth of investment opportunities in India over the next ten years as India aims to boost its renewable capacity installations, Sterlite’s CEO Pratik Agarwal told Bloomberg in an interview published on Wednesday.
According to Agarwal, India’s central and state authorities are expected to launch tenders for energy storage capacity for several GW of capacity as soon as next year.
India has set a target to install 175 GW of renewable energy capacity by 2022, including 100 GW of solar capacity, 60 GW wind, 10 GW bio-power, and 5 GW from small hydro-power.
Earlier this year, a senior government official said that India was targeting an additional 500 GW of renewable energy for its grid by 2030, as it aims to cut dependence on coal and clean up the air.
Coal, however, will ‘still be king’ in India even in 2040, according to the BP Energy Outlook – 2019. India’s renewable energy consumption will surge by 2040, mostly thanks to the power sector and driven largely by increases in solar capacity.
“Yet despite this growth in renewables, coal continues to dominate India’s power generation mix, accounting for 80% of output by 2040,” BP says.
By 2040, coal will still represent 58 percent of India’s power generation mix.
Yet, India’s energy storage is set to grow together with renewable capacity in order to ensure integration with the grid.
Related: Oil Prices Slide On Surprise Crude Build
A recent report from India’s Central Electricity Authority forecasts that India will have 34 GW/136 GWh of battery energy storage installed by 2029-2030.
India will be one of the energy storage installation hotspots globally over the next two decades, the latest report on new energies by BloombergNEF (BNEF) showed last month.
Geographically, South Korea is the current market leader, but it will soon cede the crown to China and the United States, which will be the two major energy storage markets two decades from now. India, Germany, Latin America, Southeast Asia, France, Australia, and the UK will be the other major energy storage installation hotspots, according to BNEF.