Category: Transport

Battery Inflection Point: How BESS Is Reshaping India’s Power Sector and Why Tender Design Must Catch Up

Posted on by Dipankar Das

India’s power sector is at a measurable turning point. This is not a narrative shift driven by sentiment or ideology. It is being driven by numbers. Battery prices, tender tariffs, DISCOM balance sheets, and cancellation statistics all point in the same direction. Storage has moved from being a niche add on to becoming the lowest cost solution for meeting peak demand. At the same time, the way India is procuring storage is beginning to show stress signals that cannot be ignored.

The System Level Need for BESS in India

  • India’s electricity demand profile is increasingly asymmetric. Solar generation peaks between 11 am and 3 pm. Demand peaks between 6 pm and 12 am. This gap has widened as solar capacity has scaled.
  • In high renewable states, daytime solar curtailment has become routine, while thermal generation continues to set marginal prices during evening hours. The system problem is therefore not energy availability but energy timing.
  • Battery energy storage directly addresses this issue by shifting surplus daytime solar into evening peak periods. From a system planning perspective, even four hour storage significantly reduces peak thermal dispatch.

 Scale of India’s Storage Requirement

  • The scale required is substantial and quantifiable. Since 2021, India has tendered approximately 83 GWh of grid scale battery storage capacity. Of this, around 36 GWh has been awarded. About 18 GWh is under construction. Nearly 8 GWh has already been cancelled. Roughly 15 GWh remains under active tendering.
  • By contrast, multiple studies estimate that India will require approximately 230 to 240 GWh of storage by 2032 to support renewable integration and peak demand management. This means less than 20 percent of the required capacity is either operational or under construction today.
  • The gap between requirement and execution highlights both urgency and fragility.

 Battery Cost Decline and the Tariff Reset

  • The single most important variable has been battery cost.
  • Battery pack prices are varying drastically, considering the geopolitical scenario and rare earth minerals dependencies on other countries. Solar plus battery projects that were marginal at INR 4.5 to 5/kWh are now viable closer to INR 3.4/kWh

 Comparative Tariffs Tell the Story

  • The divergence is visible in tariff outcomes.
  • Standalone solar tariffs between 2023 and 2024 consistently ranged between INR 2.3 and INR 2.7 /kWh. Solar plus battery tenders discovered tariffs as low as INR 3.41/kWh by late 2024.
  • FDRE tenders showed significantly higher prices. An FDRE tender in late 2023 discovered INR 4.38/kWh. Subsequent load following FDRE tenders in 2024 ranged from INR 4.98 to INR 5.60/kWh depending on demand fulfillment requirements.

Undersubscription and Cancellation of Tenders

  • Tender response data confirms this price mismatch.
  • In 2024, around 8.5 GW of utility scale renewable tenders were undersubscribed. This was nearly five times higher than in 2023. Energy storage linked tenders, predominantly FDRE, accounted for about 44 percent of this undersubscribed capacity.
  • Cancellation data is more concerning. Between 2020 and 2024, lot of utility scale renewable capacity was cancelled.
  • In 2023 alone, energy storage based renewable tenders accounted for roughly two thirds of all cancelled capacity. This level of rejection indicates a structural problem rather than temporary market hesitation.

 DISCOM Economics Explain the Behaviour

  • The response of utilities is rooted in financial reality.
  • As of March 2024, state distribution companies had accumulated losses of approximately INR 6.92 trillion. Outstanding debt crossed INR 7.5 trillion after growing by about 12 percent in a single year.
  • Under these conditions, utilities are extremely sensitive to tariff levels and contract rigidity. Long term power sale agreements at INR 5/kWh with strict performance obligations represent a material financial risk.
  • This explains why cumulative unsigned power sale agreement capacity has exceeded 40 GW, with a significant portion linked to central agency tenders.

 The Shift Toward Modular Solar Plus BESS

  • Solar plus battery procurement changes the risk profile.
  • Utilities can procure low cost solar energy separately and add battery capacity specifically for evening peak hours. Instead of paying a fixed firm tariff across all hours, they pay for storage only where it delivers value.
  • For example, a four hour battery supporting evening demand from 6 pm to 10 pm directly displaces peak thermal generation. This aligns better with DISCOM cost structures and operational priorities.

 Record Low Battery Bids and the Emerging Risk

  • While battery costs have fallen, recent bids are pushing the limits of sustainability.
  • Some storage tenders have discovered tariffs below INR 1.5 /kWh. Standalone battery capacity tenders with viability gap funding have reached levels of INR 2.36 to 2.38 lakh per MW per month.
  • At these tariffs, concerns arise regarding realistic assumptions on cell life, degradation, replacement schedules, safety systems, and long term operations.
  • There is also increasing concern that some bidders may be securing awards without firm intent or capability to execute projects. If such projects fail at later stages, lenders and utilities bear the consequences.

Battery storage is now the lowest cost option for managing India’s evening peak when paired with solar. India’s storage transition is inevitable. Whether it is smooth or disorderly will depend on how quickly procurement frameworks adapt to what the numbers are already saying.

Why Autonomous Vehicles with Electric Powertrains are future?

Posted on by pmanifold@admin

Autonomous vehicles are one of the most exciting developments in the transportation sector, and their integration with electric power trains is making them even better. In this blog, we will explore why autonomous vehicles powered by electric power trains are the future of goods transportation.

First and foremost, autonomous vehicles are safer than human drivers. They are equipped with advanced sensors, cameras, and software that can detect and respond to potential hazards in real-time. This reduces the risk of accidents caused by human error, such as distracted driving, speeding, and driving under the influence. With the elimination of these risks, autonomous vehicles are helping to make our roads safer for everyone.

Additionally, electric powertrains are much more efficient and environmentally friendly than traditional gasoline-powered vehicles. They produce zero emissions, which helps to reduce the negative impact of transportation on the environment. This results in lower fuel costs, making electric vehicles a more affordable option for consumers. The combination of autonomous vehicles and electric powertrains also has the potential to revolutionize the way goods are transported. Autonomous vehicles can operate around the clock, without the need for rest or breaks, which can significantly increase the efficiency of goods delivery. With electric powertrains, these vehicles can travel longer distances without the need for refueling, making them ideal for long-haul deliveries. Moreover, autonomous vehicles are also more accessible to people with disabilities or mobility challenges. They provide a new level of independence, enabling people who would otherwise be unable to drive to get around more easily. Electric powertrains are also a good fit for these vehicles, as they provide smooth, quiet, and reliable power, making the experience more comfortable for passengers.

Autonomous vehicles powered by electric powertrains can prove to be a game-changer in the transportation sector. They offer many advantages over traditional vehicles, including increased safety, environmental benefits, and greater accessibility. With the rapid growth of this technology, we can expect to see more and more electric autonomous vehicles on the roads in the near future.

As a parting note, it’s important to remember that the integration of autonomous vehicles and electric powertrains is still in its early stages, and there are still many challenges to overcome. Nevertheless, the potential benefits are too great to ignore, and we can look forward to a future where goods transportation is safer, cleaner, and more accessible to everyone.

Low emission development strategy (LEDS): Paving way for surface transport decarbonization

Posted on by pmanifold@admin

Globally climate change is causing catastrophe damage to natural environment deterring the economic progress. Increase in global population, rapid urbanization has caused a huge surge in transport demand resulting in rise of transport emissions.The transport sector is prime contributor to greenhouse gas emissions (GHG) responsible for 24% of carbon dioxide (CO2) emissions with surface transport accounting for nearly three-quarters of transport CO2 emissions. Decarbonization is the vital component that helps attenuate climate change by restricting CO2 emissions.This calls for rapid decarbonizing strategies to achieve net zero emissions as outlined in the Paris Agreement.The governments worldwide are eyeing development plans leading to low GHG emissions and boosting the social, economic, and environmental growth thus paving way for low emission development strategies (LEDS).

How LEDS can help achieve low carbon economy?

LEDS provide integrated planning to advance national economic development and climate change policies in a more integrated, systematic, and strategic way.It can be designed to create a holistic intervention plan by identifying low carbon transport interventions which can be emission standards, shared mobility, electric passenger vehicles, improvement of fuel efficiency, etc. GHG modeling can be developed for baseline estimates, projection and impact assessment of each identified intervention. A prioritization matrix can be developed based on different criteria like Policy and Legal Framework, Ease of Implementation, Economics, Social Benefits, Environment Benefits, Climate Benefits and Replicability. Marginal Abatement Cost Curve (MACC) analysis which is one of the key parameters can be done to quantify benefits and prioritize the interventions based on abatement cost.Targets can be defined for each identified intervention to make improved policy decisions.The entire process of prioritization can be done in collaboration with stakeholders. An institutional structure can be proposed for interventions which ensure smooth policy and planning regulation, its execution and monitoring and control. Also, action plans to identify most suitable sources of financing options available for each LEDS intervention can be explored.Thus, LEDS can help achieve low carbon economy.

The proposed LEDS can be a standard setting instrument that helps identify the source of GHG emissions of a country and provides staggering data from prioritization of interventions. It can result in strong collaboration of development planning and scientific analysis. It can enhance framework conditions necessary for private sector investment in mitigation actions. Thereby helping the countries to achieve zero emission. Such strategic planning and analysis have been carried out by pManifold for one of its client country.All in all, low carbon emissions can be accomplished with strategic planning and timely actions.