report on eu-india energy week with 3rd eu-india conference on … india... · 2020. 4. 13. ·...

A project implemented by PricewaterhouseCoopers Private Limited, in

collaboration with NIRAS and EUROCHAMBRES

Report on EU-India Energy Week

with

3rd EU-India Conference on Advanced Biofuels

&

India Smart Utility Week (ISUW) 2020

New Delhi, March 2020

This project is funded by The European Union

EU-India Clean Energy and Climate Partnership (CECP)

TABLE OF CONTENTS

1 INTRODUCTION ............................................................................................................................................... 1

2 3RD EU-INDIA CONFERENCE ON ADVANCED BIOFUELS ............................................................................... 2

3 FIELD VISIT TO 10 MWH GRID CONNECTED BATTERY ENERGY STORAGE PILOT ...................................... 4

4 INDIA-EUROPEAN UNION FLAGSHIP CALL ON INTEGRATED LOCAL ENERGY SYSTEMS .......................... 6

5 9TH EU INDIA SMART GRID WORKSHOP ....................................................................................................... 7

6 EU PAVILION .................................................................................................................................................. 12

EU-India Clean Energy and Climate Partnership (CECP) Page 1 of 15

1 INTRODUCTION

This report is developed under the project “Support to the India – EU Clean Energy and Climate Partnership

(CECP)”, which is financed from the Partnership Instrument of European Union (EU) General Budget and

managed by the Delegation of the European Union to India. It is carried out as part of the contract titled

“Provision of Technical Assistance Services to the Programme Clean Energy and Climate Partnership (CECP)”

by PricewaterhouseCoopers Private Limited (PwC India) in collaboration with NIRAS and EUROCHAMBRES.

This report covers the EU activities during the week of 2 to 7 March in which the 3rd EU-India conference on

Advanced Biofuels (2-4 March) and the Indian Smart Utilities Week (3-7 March) took place.

3rd EU-India conference on Advanced Biofuels: Following the 2 previous editions of the EU-India conference

on Advanced Biofuels organised in March 2018 and 2019, the European Commission’s Directorate-General for

Energy and India’s Ministry of Petroleum and Natural Gas decided organise jointly a third conference from

March 2-4, 2020. The conference aimed to facilitate the deployment of advanced renewable fuels in the EU and

India. The conference targeted primarily the technology developers, industrial players and investors of all value

chains producing low carbon fuels for the decarbonisation of transport in both sides.

Indian Smart Utilities Week: The Indian Smart Grid Facility (ISGF) has been organising its annual event, India

Smart Grid Week (ISGW) since 2015, which in 2019 transformed to India Smart Utility Week (ISUW). It is an

International Conference and Exhibition on Smart Energy and Water for Smarter Cities bringing together

India’s leading Electricity, Gas and Water Utilities, Policy Makers, Regulators, Investors and Smart Energy

Experts and Researchers to discuss trends, share best practices and showcase next generation technologies

and products in smart energy and smart cities domains. As with the increasing penetration of clean energy,

grid operators are poised with various technical and commercial challenges, grid modernization is one of the

key areas across the energy value chain. In the last decade, the renewable energy penetration has increased to

more than 10 percent in the overall energy mix requiring energy storage and information technology for

seamless transfer of energy between the consumers and producers. ISUW2020 was attended by over 1800

delegates and 288 speakers from 41 countries. In the context of the Indian Smart Utilities Week, the EU

organised:

• A visit to a 10 MWh Battery Energy Storage Pilot

• Announcement of the India-European Union Flagship Call on Integrated Local Energy Systems

• The 9th EU-India Smart Grids Workshop focusing on grid scale storage

• An EU pavilion, including small information and discussion sessions and showcasing European smart grid

projects

*The contents of this publication are the sole responsibility of the contractor and can in no way be taken to reflect

the views of the European Union or of the Delegation of the European Union to India.


2 3RD EU-INDIA CONFERENCE ON ADVANCED BIOFUELS

The Advanced Biofuels conference, jointly hosted by Directorate-General for Energy and India's Ministry of Petroleum and Natural Gas, aimed to facilitate the development of advanced renewable fuels in the EU and India. The conference was centered around technology developers, industrial players and investors contributing to low carbon growth through sustainable fuels. On 2nd March 2019 a by-invitation only Business to Business meeting took place with the objective to enable effective cooperation between industry representatives from both sides. India has an ambitious plan to install several advanced biofuels plants in immediate future and this offers significant opportunities for EU companies to participate in the endeavor.

Dias: HE. Mr. Ugo Astuto, EU Ambassador; Mr. Sunil Kumar, Joint Secretary MoPNG; and Mr. Kyriakos Maniatis, Principal administrator, European Commission

Business to Business meeting - 2 March 2020

The day commenced with a welcome lunch followed by a welcome address from Mr. Sunil Kumar, Joint Secretary, Ministry of Petroleum and Natural Gas (MoPNG), and Mr. Kyriakos Maniatis, Principal Administrator, Directorate General for Energy, European Commission, who highlighted the importance of biofuel for India and the expectations from the conference. Mr. Paul Jensen, EBTC, highlighted the support extended by EBTC for development of the biofuel sector in India. Mr. Raman Jee Jha from PwC presented a brief on the biofuel outlook in India, availability of raw materials for production of biofuel and policy support from the government. Ms. Tania Friederichs, made a presentation on the cooperation opportunities between the EU and India. She mentioned the role EURAXESS India is playing and also the programs the EU has with the Department of Science and Technology (DST) and the Department of Biotechnology (DBT). Subsequently, representatives from European companies made a brief presentation on the technology solutions their companies offer in the area of biofuel (presentations were made by inter alia N0vozymes, Leaf, Clariant, Versalis, Fortum, Lanzatech, SINTE) and from Indian companies (inter alia IndianOil, BPCL, HPCL, MRPL, Biodiesel Association of India, EIL).

The conference - 3 and 4 March 2020

The conference started with a welcome by Mr. Sunil Kumar and Mr. Kyriakos Maniatis. Mr. Ugo Astuto, Ambassador of EU to India made the opening speech, inter alia highlighting the European Green Deal and the objective for Europe to become a climate neutral continent by 2050. In the second session, chaired by Mr. Sunil Kumar, the speakers highlighted the developments in the biofuels sector in India, the challenges and possible solutions. The third session focused on the availability of bioresources in India. Ms. Nirmala Kaushik presented an online heatmap to understand the availability of bioresources. It was highlighted that the database is based on satellite imaging and needs yearly updation. Mr. Dinesh Dayanand, Joint Secretary, Ministry of New and Renewable Energy, set out the policy supports available for biofuel projects. Developments in the area of Compressed biogas, used cooking gas based biodiesel and co-processing were discussed in session four. Presentations were made on the Sustainable Alternative Towards Alternative Transport (SATAT) initiative, technology to produce bio-gas, bio-methanation and promoting startups in this biofuel segment.


A presentation was made by the representative of the Confederation of Indian Industry detailing the bio-fuel value chain, opportunity and challenges at each stage of transforming the bioresource to transport fuel. Session five, chaired by Dr. SSV Ramakumar, Director (R&D), Indian oil corporation, entailed a discussion on novel concepts of biorefineries, biochemicals and carbon capture units. A representative of Indian Air Force presented the performance and challenges of using synthetic jetfuel in aircrafts. A representative from SENASA and LyondellBasell made a presentation on the difference of scale in biofuel production in India and Europe. The role of sustainable fuel as a high-octane petrol and its role in reducing the emission was highlighted.

On 4 March the conference continued with session six on the progress in lignocellulosic ethanol chaired by Mr. Subodh Kumar (IOCL). The presentations were made by different companies on their technology solutions. Mr. M S Patke (BPCL) presented an overview of 2G bio-ethanol technology. Representations were made from Clariant Produkte and Versalis/ENI discussing their Sunliquid technology and Proesa technology respectively for cellulosic ethanol production. Praj Industries made a presentation on their Integrated advance bio refinery solutions driving sustainability. The session concluded with Mr. B Ramachandrarao from HPCL discussing the approach for overcoming limitations towards commercialization of Biofuels. The presentations on lignocellulosic ethanol continued in session seven, chaired by Mr. Didier Masy from Lesaffre Advanced Fermentations (LEAF). Presentations were made by IOCL and MRPL presenting the overview of their 2G projects. Novozymes discussed their perspective on how the 2G Ethanol industry could be enabled globally. A presentation was made by NovelYeast on development of industrial yeast strains for economically sustainable production of advanced biofuels. This session concluded with Sainc Energy Limited discussing the first of its kind biofuel scale continuous flow reactor for biorefineries.

Session eight, chaired by Ms Sangeeta Kasture, Department of Biotechnology, Ministry of Science and Technology, GoI, discussed novel concepts of biorefineries, biochemicals and carbon capture units. She briefed the DBT initiatives and schemes rolled out to promote innovation and Research & Development in Biofuels segment. Presentations were made by Reliance Industries and Shell on their Advanced Biofuels Program. IndianOil discussed their 1st refinery off-gases to ethanol production project. The session concluded with a BPCL presentation on the Integrated approach for sustainable Bio-refineries followed by Networking Coffee.

Post the networking break, Mr. Eric van der Heuvel made a presentation on the policy approach to gradually eliminate fossil fuels by 2050 and need to direct all innovation and investment to renewables energy in transport sector. He also moderated a panel discussion on Development of necessary ecosystem for Advanced Biofuel Economy. The panelists included Mr. Y B Ramakrishna, Mr. Pramod Choudhary, Mr. Shishir Joshipura, Mr. Renato Domith Godinho and Mr. Ralf Hortsch. The panelists discussed the key driving factors, challenges and impediments associated with development of Advanced Biofuels Economy. The presentations made during the event are available at the link- https://ec.europa.eu/energy/topics/renewable-energy/initiatives-and-events/eu-india-advanced-biofuels_en

The conference resulted in the following key recommendations:

• Effectiveness of Bioenergy projects: Identification of technology gaps and stronger support for R&D, Support in the valorisation and market creation for the by-products, strategies to lower CAPEX and OPEX and design optimisation.

• Financing bioenergy projects: A new enabling financing mechanism needs to be developed and the developers need to access and tap into green funds.

• Optimising the upstream section of the value chain: Creating supply management and pricing mechanisms for the feedstocks, biomass depots, securing the involvement of agriculture sector, upstream feedstock optimisation for lower process costs

• Accelerating permitting and licencing approvals at the local level

• The conference also discussed upon the upcoming 2G feasible technologies and available feedstock in India in line with the technology booklet launched after 2nd EU-India biofuel conference1.

• The series of EU-India conferences have demonstrated the creation of an ongoing interaction and integration between EU and India parties; Intensification and further strengthening of this process, High level of open information exchange reflects a great trust in the collaboration, EU-India joint fund to support R&D, EU-India working group to accelerate the process.

1 http://artfuelsforum.eu/wp-content/uploads/2019/04/Booklet-on-technologies-presented-at-the-2nd-EU-India-Conference-on-Advanced-Biofuels.pdf

https://ec.europa.eu/energy/topics/renewable-energy/initiatives-and-events/eu-india-advanced-biofuels_enhttps://ec.europa.eu/energy/topics/renewable-energy/initiatives-and-events/eu-india-advanced-biofuels_enhttp://artfuelsforum.eu/wp-content/uploads/2019/04/Booklet-on-technologies-presented-at-the-2nd-EU-India-Conference-on-Advanced-Biofuels.pdf


3 FIELD VISIT TO 10 MWH GRID CONNECTED BATTERY ENERGY

STORAGE PILOT

With increasing pentration of renewable energy sources there is an increase in the intermittency and

unpredictability of power generation requiring a grid connected Battery Energy Storage System (BESS).

Various countries have started to deploy grid scale BESS devices within utility services areas to provide a host

of functions ranging from standby capacity reserves, frequency control, forecasting and economic order

dispatch, peal load management, deviation settlement mechanism and other areas pertaining to grid stability.

TPDDL has deployed a 10 MW/MWh grid scale battery energy storage systems (BESS) and has been providing

grid support functions to the utility. On 3rd March 2020, the following representatives from European Union

member states, policymakers, institutions and private sector companies visited one of the Asia biggest grid

connected battery based energy storage technology pilot plant deployed by Tata Power Delhi Distribution

Limited (TPDDL):

The distribution licensees that own distribution system may own and/operate BESS to flatten the demand

curve or to provide reliability support or sale of power as part of distribution obligation or provide storage

services to others. The Indian electricity regulators are working on the feasible business models for ancillary

services including frequency control and primary reserves to optimally utilise the BESS services in future.The

fast ramp-up/down capabilities of the battery system provide critical system flexibility and enhance system

reliability of the grid for the Tata owned utility.

BESS Operational Information

• Currently the BESS device is only providing grid stabilization and peak load management services, as the

policy and regulatory regime in India still does not include all the services of battery energy storage

operators to be compensated.

• The system has conducted trial operations for other services including frequency regulation and will soon

provide those services as and when policy and regulations allow them to provide such services.

• Battery storage projects help defer upgrades to Transmission & distribution (T&D) infrastructure required

to address load growth and rising peak demand, congestion on the network, and reliability issues.

• The current operation of the system is governed by the power manager who manually calculates the price

differential in energy and directs the battery system operator to charge or discharge the battery.

Delegation of the European Union to

India

European Investment Bank

(EIB)

Embassy of Germany

Indo-German Energy Forum

(IGEF)

Embassy of France

Embassy of Sweden

Solar Energy Corporation of

India (SECI)

Indian Renewable Energy

Development Agency (IREDA)

The European Association for

Storage of Energy (EASE)

Geco GlobalSmart Innovation

NorwayLarsen & Toubro


• With the commissioning of the BESS TPDDL has been able to save ~Rs 21 million due to penalties associated

with the overdrawal of power during peak load conditions.

• The approximate cost of the battery was quoted around Rs. 700 million including the battery management

system.

• Policy and regulatory interventions are required for such BESS systems to monetize their entire of suite of

capabilities for grid services.

Delegation and site visit photos

Key Technical Points about the project:

• This energy storage system consists of lithium ion based Nickel Manganese Cobalt (NMC) cells supplied by

LG Chem and a battery management system by Fluentgrid (JV of AES and Siemens).

• The BESS is interconnected with the utilities SCADA systems, isolation transformers, and switchgear

protection systems. Currently the system is able to meet the partial services due to policy restrictions in

India including on peak load management, deviation settlement, and emergency power supply (grid

islanding).

• The 10 MWh batter consists of four individual cores of 2.5 MWh each which are interconnected at 11 kV.

Each core has 37 racks with each rack having 14 battery modules, 1 Battery Management System, 1 node

and 1 inverter.

• The rack voltage is 725 V, with an inverter (parker make) capacity of 88 kVA and an inverter output of 415

V at 126 A. Each of the pouch configuration battery cells has a capacity of 6.5 kWh

• The claimed efficiency of the system is yet to be calculated but is believed to be between 85-90%

• Cooling capacity of approximately 600 KW is utilised to keep the battery system at the optimal

temperature. Therefore, a large amount of auxiliary power consumption is required to ensure optimal

battery performance.


4 INDIA-EUROPEAN UNION FLAGSHIP CALL ON INTEGRATED

LOCAL ENERGY SYSTEMS

The India-EU Flagship Call on Integrated Local Energy Systems was announced at the ISUW 2020 in the

presence of Sh. Ashutosh Sharma, Secretary, Department of Science & Technology (DST) and EU Ambassador

Mr. Ugo Astuto. This Indo-EU Flagship call2 will give novel solutions encompassing local integration across

various energy vectors and increase the share of renewables in the energy mix and high energy efficiency. The

call is fully in line with both the EU’s and India’s involvement in Mission Innovation (MI), a global initiative of 24

countries and the European Commission (on behalf of the EU), committed to reinvigorate and accelerate global

clean energy innovation with the objective to make clean energy widely affordable.

Launch of call on Integrated Local Energy systems at the ISUW 2020

The flagship joint call will facilitate 18 million euro and will aim tol develop and demonstrate novel solutions,

integrating all energy vectors (electricity, heating, cooling, water, wastes, etc.), including possibilities offered

by batteries and electric vehicles, interconnect them and optimize joint operation with an increased share of

renewables and higher energy efficiency. Cooperation will take the form of a proposal demonstrating a local

energy system (or several) in Europe and/or India.

The scope of the proposed call is to develop and demonstrate novel solutions which analyse and combine, in a

well-delimited system, all the energy vectors that are present and interconnect them, where appropriate, to

optimise their joint operation that is demonstrated by an increased share of renewables in and higher energy

efficiency of the local energy system. Solutons will focus on a preliminary analysis of the local case as part of

the content of the proposal and propose to develop solutions and tools for the optimisation of the local energy

network, that also have a high replication potential across Europe and India. The identified solutions will bring

together all vital stakeholders: local consumers, small to medium industrial production facilities and/or

commercial buildings to be involved in the projects from the start, preferably by creating energy renewable

energy communities.

2 https://pib.gov.in/newsite/PrintRelease.aspx?relid=1998 87

https://dst.gov.in/pressrelease/india-european-union-flagship-call-announced-integrated-local-energy-systems-india

https://pib.gov.in/newsite/PrintRelease.aspx?relid=1998%0987https://dst.gov.in/pressrelease/india-european-union-flagship-call-announced-integrated-local-energy-systems-india


5 9TH EU INDIA SMART GRID WORKSHOP

On 5 March the 9th EU-India workshop on smart grids took place at ISUW 2020 deliberating on the emerging trends in the area of grid scale energy storage, renewable energy integration, cyber security, digitisation and automation of electric utilities. The workshop was attended by regulators, policy makers, electricity utilities, investors, smart energy experts, and researchers.

Clockwise: Speakers in the first session, participants, Joint Secretary, Ministry of Power

Inaugural session: Participants were welcomed by Mr. Reji Kumar Pillai, ISGF, who elaborated upon the importance of the different pilots already implemented and the role of the EU, stating that the outcome of four years of cooperation between the ISGF and DG ENER, European Commission has been fruitful and instrumental to the projects. He addressed the participation of Indian DSOs in the projects, the importance of sharing data and information, the role of entrepreneurs and the need for scale up solutions in energy storage systems.

The workshop was inaugrated by Mr. Mritunjay Kumar Naryan, Joint Secretary, Ministry of Power, India, who stressed the need for smart grids in India. He addressed the EU’s role in enhancing the adoption of smart and efficient grids, considering the EU a key enabler for investments in the area of electric utility and digitisation. He emphasized the need to follow up on the key learnings from the EU smart utility event held at Paris. He also discussed the need to invest in solutions that enable effective integration of renewables in the grid, including in the required skills. In India there is a requirement of providing reliable and 24/7 power to consumers, which will require state of the art smart grids. India has set the target of installing 250 million smart meters, which will improve the overall efficiency of electricity business. He encouraged ISGF to conduct further events in the future with active participation of the EU Member States.

The keynote address was given by Mr. Matthieu Craye, DG ENERGY, European Commission, who recognised the common need for India and the EU to integrate more RE in their grids. It is therefore necessary to provide more flexibility, for which Energy Storage Systems (ESS) at grid scale will play an important role. ESS at grid level could offer balancing services (FCR, FRR) and contribute to power quality (e.g. voltage control) and investment deferral. He highlighted several key initiatives and areas of cooperation with India on smart grids, including the ongoing EU-INDIA Smart Grid Projects, support in the deployment of smart grids, cost benefit analysis of smart meters, cyber security, ESS Pilot Projects in Europe and India, innovation and Business Model trends in Grid-scale energy storage, regulatory challenges in connecting grid scale storage.


Session 1: Grid scale energy storage system needs, market design and regulatory issues

1. Praveer Sinha, MD & CEO, Tata Power Company Limited stated that the learnings from the pilot projects will enhance efficiency and encourage investments in the Indian utility sector. He focused on:

• Role of storage in handling infirm power from renewable sources

• Importance of storage in achieving 175 GW of renewable energy targets

• Role of storage in maintaining grid stability with increasing RE penetration

• Power quality in electric grids, increasing load of LEDs and reducing power factor in the overall system.

• Smart grids can enhance the power quality through dynamic compensators

• FOR, CERC and Tata power have monitored the power quality and have drafted necessary technical guidelines for improving power factor

• Need for developing regulatory market for increasing renewable energy penetration

• Elements for mutual cooperation between EU and India to develop state of art of smart grids

• EV charging and storage combination will drive the future of electric utilities

• Intangible benefits needs to be evaluated in the overall Cost benefit Analysis of energy storage

2. Subir Sen, Executive Director, POWERGRID discussed:

• The installed capacity in India of 369 GW and the increasing capacity addition of RE, currently at 23%.

• The targets aiming at reducing the overall conventional energy contribution to 50 percent by 2025, requiring increased deployment of energy storage to accommodate increased RE.

• A potential of 96 GW (63 schemes) in India has been identified for Pumped Hydro storage on the main rivers and their tributaries by Central Electricity Authority (CEA). Flexible ramping based energy storage systems are needed, which can be delivered through grid scale battery energy storage systems.

• The role of REMCs, which is instrumental in forecasting and scheduling dispatch for renewable energy generation. Currently there are 11 REMCs at SLDC/RLDC level, along with 18 dynamic compensators and 52 GW of reserves for primary and secondary regulation.

• Grid scale storage will enhance the smooth offtake of renewable energy targets.

3. Patrick Clerens, Secretary General Energy Technologies Europe, European Association for the Storage of Energy (EASE) highlighted:

• The need for energy storage and available flexible options to integrate variable renewable energy during the peak and off peak times. He presented the example of Spain in 2050, forecasted to have mainly green power. Seasonal flexibility would only be managed through long term energy storage systems, including sector interfaces.

• More than 200 GWh would have to be shifted over the day, given that the global yearly capacity of batteries in 2016 was around 26 GWh, and is expected to be 174 GWh by 2020, batteries alone cannot solve the issue.

• The technologies and related applications, key technologies under R&D and the role of chemical, electrical, mechanical and thermal energy storage technologies going forward.

• Challenges for implementing storage technologies in relation to the regulatory and policy framework.

• Several energy storage projects like a battery one in the UK and the Ringo project (a variable speed pumped hydroproject) demonstrate how energy storage can avoid building new transmission lines and the role of Energy Storage Systems in balancing reserves.

4. Pradyumna Bhagwat, Research Fellow, Florence School of Regulation addressed:

• The relations between the EU clean energy package, energy storage, RE integration, ACER regulations, governance regulation, energy performance and the energy efficiency directive. Key learnings from the clean energy package and the electricity directive are the need for mandated reduction in barriers for grid level and distributed storage, inclusion of storage in the planning process, ownership of ESS systems and broader definition of ESS.

• The SET Plan action and flagship activities under the program on the battery value circle: design and recycling, manufacturing, application and integration.


• The European green deal and the role of energy storage systems in strategic plan, battery alliance,

legislation in 2020 for safe, circular and sustainable battery value, regulatory framework for energy infrastructure to foster the deployment of innovative technologies and infrastructure.

5. Amit Kumar, Partner (Clean Energy), PwC India discussed:

• Different technologies available in the market and the emerging technologies, Lithium ion share, referring to the exponential growth of lithium ion based energy storage projects globally with an impressive growth of 90% of the upcoming projects preferring Lithiun ion technologies.

• The learning curve pertaining to lithium ion technologies and price reduction of lithium ion batteries. He cautioned about emerging technologies in the market and the share of flow batteries and zinc air will increase going forward, if the maturity and cost improve.

• The need for manufacturing of storage as currently all the cells are imported. In the absence of somestic manufacturing, the upcoming demand would have to be supported by imports alone.

• The EU-India CECP and the activities which are carried out under the initiative, including an upcoming webinar on energy storage system, inviting the audience to participate in the webinar.

6. Luis Miguel Costa, Head of Digital Solutions, L&T shared information about:

• His learnings from the rural electrification projects in Bihar and the role of L&T solutions in electrifying the villages efficiently through digital solutions across the DSO network.

• The micro grid at the L&T facility which has energy storage system with net zero emissions, automatic fast load control, smart control system and generator capacity management.

• L&T products related to energy storage systems including energy management controls, BESS sizing tools, technology due diligence of battery systems and key projects in grid integration of renewable energy projects with energy storage systems.

• Growing opportunities globally and in India. The need to evolve from optimal benefits for investors and end users, scalability of control and management systems, enabling multiple stakeholders interactions and business models, flexible future proof designs and optimized logistics and skills utilization.

7. Naveen Nagpal, General Manager (Renewables, BESS & E-mobility), BSES Rajdhani Power Ltd addressed:

• The evolution of BSES from high AT&C losses to more efficient and robust network and strategies behind the improvements.

• Technology focused areas like AI in utilities, digitisation of LV network, fast EV charging and roadmap for smart meter program.

• The need for energy storage in India in the areas of RE integration, energy arbitrage, Deviation settlement. The feasibility of deploying grid scale energy storage systems at distribution level.

• Capex deferral concept for energy storage systems for DSOs, the role of distributed energy storage systems in enhancing the voltage profile and avoid overloading of the transformers.

• The inability for ramping with conventional plants and the importance of energy storage systems for sudden ramping in seconds during the peak hours.

• Various energy storage systems business models like the opex/service model and the utilization of energy storage assets for different application to optimize costs. He highlighted the need of tariff and other approvals by the electricity regulators for adoption of energy storage systems by DSOs in India.

Session 2: Grid scale energy storage system projects in European Union and India

1. Rémy Garaude-Verdier, Energy Storage in the Interflex Project, Enedis focused on the key pilot projects in India: IELECTRIX: a project combining smart grid demonstrations in EU and Indian networks by ENEDIS and Tata Power Delhi Distribution Ltd. IElectrix- LV automation and digitisation, energy islands and outage management, prosumer communities, upgradation of assets, space and capital

• 15 EU partners, 1 Indian partner, 42 months duration and 10.7 million euros

• Geography covered: Germany (High RE, Lack of flexibility and storage), Austria (existing energy communities), Hungary (new voltage regulation limits, high peak load)


E-LAND: 42 months, 6.2 million euros, 12 EU partners and 2 Indian Partners

• Multi vector energy management objectives – multi energy foundation on advanced data analytics and advanced ICT technologies with strong consumer engagement and business models

• Pilots in India- Small, medium and community based storage and solar PV rooftop systems

2. Álvaro Nofuentes Prieto, Energy Storage in the Crossbow Project, ETRA addressed:

• The nine products under the project involving thirteen countries, with nine project clusters having the demonstration of power transmission technologies and management of large scale RES generation.

• Involvement of eight TSOs, one DSO, one RSC, universities, industrial partners and associations in the Crossbow project. The role of each stakeholder across the program at regional operation center, WAMAS at transmission and distribution level and WAMAS at consumer level.

• The demos at Greece (HEDNO) engaging TSO-DSO collaboration and pilot at Croatia laboratory.

3. Jitendra Nalwaya, Head - System Operation & Sustainability, BYPL discussed:

• The peak energy demand trend at BRPL and the need for storage during peak hours to meet ramping demand and to reduce dependency on procurement of expensive peak power during peak hours.

• The projects which are initiated by BYPL at 11 KV level with 1 MWh storage, grid tied energy storage with solar PV rooftop and grid tied ESS with 3-4 MW. The key benefits from distributed energy storage systems, role of different battery chemistries and performance on the operation of the overall system. The pilot project at BYPL office and key benefits and areas for improvement of the energy storage system for DSOs: Role of distributed storage leading to capex deferral; Optimization of RoI in energy storage projects; Storage at LT and 11Kv level; Storage capacity based on the load centers; Reducing AT&C losses through smart equipment and monitoring; Storage at incoming and consuming side to improve returns on the storage investment

• The current architecture of energy storage systems at DSO level and the requirement of intelligent systems and battery management systems to operate and dispatch the quantum of power into the electric grids.

4. Sebastian Marx, Director Public Affairs, Texel Energy Storage informed:

• That Texel Energy Storage was developed after six years of research and development had has

exclusive license with DOE, USA. It has bought the worlds most developed sterling engine, formerly

known as United Sun Systems.

• A few key takeaways from the pilot are: i. Low cost compared to lithium ion technology

ii. No cyclic degradation of energy storage systems iii. Long storage duration of 100 years iv. High energy density v. Having 100% recyclable materials

vi. No resource consumption and highly scalable

• About a cost benefit analysis of the Texel energy systems compared to the lithium ion based energy storage systems. The presenter also highlighted the state of the art first of its kind project at Necker Island, which is powered by Texel energy storage solution.

5. Rupam Raja, Director, Fluence, India highlighted:

• The five energy storage projects implemented by Fluence globally.

• The energy storage project at Rohini, TPPDL, including the services currently being served by the 10 MWh battery system and the flexibility of services offered by energy storage system.

• The deviation settlement mechanism (DSM) regulations and the amendments in India, and how the battery energy storage will meet the requirements of the Indian electricity regulator.

• The projects installed in California, Thailand and other global projects which are garnering interest for different ancillary services and providing a viable business case for energy storage projects.

• The evolution of battery management systems developed by Fluence; the company has worked on improvement of several parameters in enhancing battery life, reducing the impact of temperature on the life batteries and reducing the auxiliary consumption of the overall battery energy storage system.


Panel Discussion: Moderated by Christophe Arnoult

The panel discussion addressed feasible business models in energy storage, including in the EU, and challenges for ensuring a business case for energy storage and the monetization of storage. Energy storage services are currently used for grid stability, primarily focusing on ancillary services, not for the consumer segment at distribution level. Multi-purpose business models need to be evaluated for transmission and distribution operators, to optimize the utilization of energy storage assets. The Supreme Court in India has banned the use of DG sets in Delhi in the wake of deteriorating air quality and energy storage will be economically feasible case. Delhi utilities have been paying high charges as a penalty for not adhering to dispatch of power, energy storage is playing a key role in dispatching the demand during the peak hours. Ancillary services are still at a nascent stage in India. With increasing penetration of RE, business cases will evolve in India.

Key messages from the workshop:

• With increasing RE penetration at large scale at GW level, solar PV rooftop (distributed level), increasing penetration of EVs and carbon free mobility programs, energy storage applications are on rise in India and will be even more needed in the future.

• Some of the key benefits of battery energy storage are: energy time shift, ancillary services, low carbon renewable energy dispatch policy, reduction in capex for transmission and distribution upgrade (Peak load management). To realize return on investment a conducive policy and business models should be in place.

• Learnings from EU Member States and role of Indian DSOs: Often there is resistance among traditional utilities to transition to new technologies and new methods of operating and managing the grid, which is required with high penetration of variable generation. The push therefore has to come from policy makers and regulators. Although there are substantial benefits of energy storage to the grid, they are often difficult to quantify, as it concerns improvement to power quality, reliability, resiliency, energy security, and efficiency gains. Governments and regulators should therefore play a leading role and derive specific tenderded products where energy storage can bid.

• There is a need for development of a policy and regulatory framework: Ancillary markets in India are at niche stage and a holistic regulation should allow for nationwide open access and energy transfer interstate and intrastate. The need of energy storage will play a key role to meet the high ramping rates of 200, MW/minute. Detailed sizing and specifications as per the Indian grid conditions will be necessary. It is important to have a regulatory framework that increases investor confidence against the backdrop of falling technology prices.

• Optimisation of energy storage services: Capex for ESS is one of the primary deterrent posed by utilities. Utilities are keen to adopt capex deferral/distributed energy storage solutions to integrate RE. EU based DSO’s have successful business cases to integrate energy storage at DSO level, which can be potentially mapped in India. There is also a growing demand for renewable energy coupled with energy storage solutions tenders in India, developers quoting a tariff of cents 11-12/kWh for peak power supply.

• Requirement of innovative business models: Currently in India energy storage services are limited to Deviation Settlement Mechanism (DSM) and peak load management due to policy and regulatory limitation for other services like primary and secondary reserves, congestion management. In the EU, generators are willing to pay a premium for a much faster ramp-rate than traditional gas turbines, thereby requiring a lower capacity reserve.

• Battery manufacturing opportunity: With increasing demand for battery storage services and government of India’s push for 50 GWh of domestic manufacturing, there is a scope for synergies between in India and EU technology providers to tap the huge manufacturing potential.

• Research and Innovation in battery technologies: The impact of temperature and ambient conditions on depth of discharge, auxiliary consumption, number of cycles (life of battery), intelligent battery management systems are some of the key areas for R&D for joint collaboration between India and EU.


6 EU PAVILION

From 4th to 6th March 2020, the EU hosted an EU Pavilion at the exhibition part of ISUW 2020, which was organied under the Clean Energy and Climate Partnership Project in close coordination with The Business Support to the EU-India Policy Dialogues project. The EU pavilion showcased EU technologies, solutions and advancements in the field of Smart Utilities. The EU pavilion was inaugurated on 4th March by Mr. Sanjiv N.Sahai, Secretary, Ministry of Power, Government of India and H.E. Mr. Ugo Astuto, EU Ambassador.

Inauguration of the Exhibition space and the EU pavilion at ISUW 2020 by Secretary Mr. Sanjiv N. Sahai and

EU Ambassador Mr. Ugo Astuto

In addition the EU pavilion had the honour to be visited by key policymakers like Shri R.K Singh, Minister of State (IC) - Ministry of Power; HE. Mr. Upendra Tripathy, Director General of the ISA, ISA; and Shri Mritunjay Kumar Narayan, Joint Secretary, Ministry of Power.

Nine EU H2020 projects and 4 EU Businesses showcased their research and technologies at the Pavilion. An additional, 7 EU H2020 projects showcased their research through posters at the EU Pavilion. A total of 9 stands and 21 posters were displayed at the EU Pavilion.

Shri R.K Singh, Minister of State (IC) - Ministry of Power at the EU pavilion


List of companies at EU Pavilion at ISUW 2020

Project/ company

Description

Crossbow & Wisegrid

WiseGRID integrates, demonstrates and validates advanced ICT services and systems in the energy distribution grid in order to provide secure, sustainable and flexible smart grids and give more power to the European energy consumer. CROSSBOW is a TSO driven project with two interrelated and equally important strategic goals: on the one hand, it aims at the successful deployment in the market,

Muse Grids & TSO2020

MUSE Grids project aims to demonstrate, system-wide and in reallife operational conditions, a set of both technological and nontechnological solutions adapted to local circumstances targeting local urban energy grids

E-Land & Resolvd

RESOLVD is H2020 research and innovation action coordinated by Universitat de Girona and participated by other six partners: Joanneum Research, Smart Innovation Norway,

Ielectrix IElectrix started in response to the growing need for creating innovative technical solutions and business models that facilitate the implementation of Local Energy Communities (LEC) and the integration of distributed Renewable Energy Sources (RES).

STORY & Compile

STORY is a European project which focuses on the presentation of new small-scale energy storage technologies and their benefits in distribution systems. The project involves 18 partners from 8 different European countries.

Settlemint SettleMint makes it easy and fast for any organization to create business solutions on any blockchain.

QOS Energy

QOS Energy is an innovative independent software vendor specialising in data intelligence cloud solutions for renewable energy companies. QOS Energy operates in 23 countries worldwide, with offices in Europe, North America and India.

Texel TEXEL Energy Storage (TEXEL) Has together with US Department of Energy (DOE) developed a new unique battery technology, more than 90% cheaper than traditional battery technologies like Lithium-Ion in some applications.

ZIV Automation

ZIV is an exceptional company, with knowledge in four key areas (protection, control, communications and metering), offering complete solutions for the challenges of the current electrical system.

A conference room at the EU Pavilion was created so that EU projects and businesses could make presentations over all 3 days. A B2B area in the pavilion supported by the Business Support project, ensured that the Indian visitors met with the EU delegates on a one on one basis.

Various projects making presentation at the conference area and the B2B area of the EU pavilion

The conference room was also used for the launch by the SolarPower Europe’s Emerging Markets Task Force and the National Solar Energy Federation of India (NSEFI) of their report on “India: Solar Investment Opportunities”, outlining the solar investment opportunities in one of the world’s fastest growing markets.


The report was launched in the EU pavilion in the presence of Mr. Upendra Tripathy, Director General, International Solar Alliance (ISA), Mr. Pranav R Mehta, Chairman NSEFI, Mr. Matthieu Craye, International Relations Officer, DG Energy, European Commission, Mr. Jens Martin, Solutions Manager, E.ON & VC- SolarPower Europe’s Emerging Markets Task Force, Mr. Subrahmanyam Pulipaka, Chief Executive Officer, NSEFI and Mr. Mate Heisz, Head of International Cooperation, SolarPower Europe. The report provides a snapshot of India’s business environment and major macroeconomic trends, and analyses issues related to the country’s credit and political risk. Moreover, it characterizes the country’s energy context and relevant stakeholders, as well as the regulatory framework for investment (https://www.solarpowereurope.org/wp-content/uploads/2020/02/SolarPower-Europe_India-Solar-Investment-Opportunities.pdf)

Launch of report and panel discussion at the EU pavilion

Subsequently, a panel discussion took place on “Solar Investment opportunities in India”, building upon the Solar Power Europe and NSEFI report, with the following panelists: Mr. Manoj Gupta, Vice President- Solar Business (India & Asia), Fortum India, Mr. Jens Martin, Mr. Pranav R Mehta, Mr. Matthieu Craye and Ms. Ritu Lal, Senior VP & Head - Institutional Relations, Amplus. The panel discussed India’s energy context, the need to focus on solar as well as the regulatory framework for attracting investments:

• Mr. Pranav R Mehta highlighted that India continues to be one of the most attractive markets for solar investment in the world, with an ambitious solar energy target of 100 GW, a focus on domestic manufacturing, and increased attention to distributed generation – including agricultural pumps and rooftops.

• Ms. Ritu Lal highlighted that ground mounted (large scale solar) is facing issues of rising land prices and transmission connectivity, hence rooftop solar offering clean electricity with lower losses (being closer to consumption/load centres) is the way forward. She highlighted that India has much to learn from Europe that has deployed huge solar rooftop capacities, focusing particularly on domestic installations.

• Mr. Matthieu Craye emphasized the need to develop business models for rooftop solar in India, drawing learnings from Europe wherein utilities were involved. Solar is crucial to delivering a successful European Green Deal, and rooftop solar can get a boost with legislation mandating solar on new and renovated residential, commercial, and industrial buildings in the EU.

• Mr. Manoj Gupta discussed the key budget announcements on solar- extending concessional corporate tax rate of 15% to new power generators and imposition of tariff of 20% on solar cells & modules. He highlighted the equity crisis in the sector, which has led to several bids getting undersubscribed and urged all stakeholders including the policymakers to work together to realize the 100 GW solar energy target by 2022.

• Mr. Jens Martin emphasized that India’s renewables sector is growing at a strong pace. The country’s government committed to one of the largest solar capacity extension programmes in the world, creating opportunities for national and international players, and ensuring the sector’s consistent growth. Solar Power Europe is also developing Operations and Maintenance Guidelines for utility scale solar projects, that can help to optimise both the technical and economic performance of solar plants in India.

On 6th March, a session was organised in the EU Pavilion on “Doing business in Smart grid and Renewable Energy sector in India”. The panel consisted Mr. Tobias Winter, Indo German Energy Forum, Mr. Divay Pranav,

https://www.solarpowereurope.org/wp-content/uploads/2020/02/SolarPower-Europe_India-Solar-Investment-Opportunities.pdfhttps://www.solarpowereurope.org/wp-content/uploads/2020/02/SolarPower-Europe_India-Solar-Investment-Opportunities.pdf


Invest India, Mr. Debmalya Sen, India Energy Storage Alliance and was moderated by Ms. Judith Weinberger Singh, Business Support to EU India Policy Dialogues Project. The session addressed some of the key opportunities and challenges in the various sub-sectors of Renewable Energy and smart grid and the measures the current government has laid out to encourage foreign direct investment in the sector. Key points made by the speakers are highlighted below:

• Mr. Divay Pranav (Invest India): Investment in renewables was heavily subsidy driven till the late 2000’s, the fall in the price of PV technology and efficiency improvements have driven the energy markets towards renewable capacity installations. Renewable energy technologies were given the need impetus by the Government of India through subsidy support as well as policy and regulatory intervention, battery energy storage is also likely to witness a similar treatment as the market and technology mature. The Policy and regulatory framework in India is yet to be established for recognition services that energy storage systems can provide to the grid.

• Mr. Debmalya Sen (India Energy Storage Alliance): the IESA has worked with clients in India who were looking to install battery storage devices to offset the peak power expenditure as well as the additional expense due to time of day tariffs in various parts of the country. Locations with unreliable grid access in the country have been reliant on battery storage based mini grid system for continuous power supply and are able to find value in paying higher that grid charges for reliable electricity round the clock electricity. The primary use cases of the storage system determine the battery technologies that are being deployed. As the markets mature the second life use of batteries (Li-Ion batteries) will start to emerge further driving down the cost of deployment of grid storage technologies.

• Mr. Tobias Winter (Indo German Energy Forum): Diesel based generator back-up power of ~100 GW in India presents a huge opportunity for storage energy companies to start tapping into the potential energy storage market in the Indian sub-continent. The electricity markets in India are still highly regulated with little or no private sector involvement, there have been high level policy discussions between India and EU members to set a roadmap for the turnaround of the electricity markets in India. Developed markets where content carrier unbundling has happened has provided consumers with a various energy providers, India with the current DISCOM financial conditions might privatize its energy assists soon to become operationally more efficient.

ISGF Innovation Awards:

DG-Energy, European Commission, represented by Mr Matthieu Craye, received the ISGF president award

for best contribution for fostering the growth of smart grids and renewable energy in India


About EU-India CECP

The EU-India CECP aims to reinforce cooperation between the EU and India on climate change and energy

with a view to ensure a secure, clean, affordable and reliable energy supply for all and to progress in the

implementation of the Paris Agreement.

For more details, please visit: www.cecp-eu.in

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