CESL to launch the country's first grid scale battery storage program

Set to launch grand challenge for electric buses in cities

Converge Energy Solutions Services Ltd (CESL), the newest energy solutions company launched under the aegis of state-owned EESL, will launch the country’s first grid scale battery storage program. The company, which has executed projects in electric mobility and LEDs in rural areas, will also expand in solar-agri solutions, electric public transport and charging infrastructure.
 
Speaking with Business Standard, Mahua Acharya, managing director, CESL, said battery storage plans of the company will be grid-scale. “We are getting into business distribution and energy markets with this. The idea is, whenever there is a dip in demand, battery storage companies should be available to switch on and provide power in five seconds. The battery storage can be a standby service against monthly rental,” she said.
 
Acharya said the grid scale battery program will have a multi-pronged approach. It will not only provide a supplementary energy source but also lead to capex savings for discoms.
 
“A lot of our transformers are overloaded, and they should have been upgraded. Discoms are in financial trouble and are unable to take up reforms. So, a battery system will create a headroom and delay the investment by discoms into upgradation,” she said, adding there was an existing policy under “demand side management – Capex deferral” for a project such as this.
 
“Discoms can install battery systems and defer their capex in system upgrade. And battery storage companies would get paid for it,” she said.

Acharya is expecting discoms to come forward as several battery companies have shown interest. CESL has done three feasibility studies and will launch the program in a few weeks.
 
“Each discom has different needs — some would need to manage the evening peak, some for balancing power, some need capex deferral, some don’t mind reducing their high peak power cost. This same battery unit will be able to fulfil several needs. It can be used for electric vehicle charging. That would be another source of revenue,” said Acharya.
 
Another major program that CESL is looking to launch is in the space of electric mobility in public transport. “We will launch a grand challenge for cities to participate to get subsidy for running electric buses. The subsidy amount would come from the FAME-II scheme for EVs,” Acharya said.
 
Cities will need to submit details for a standardised bus depot with charging facility, minimum number of kilometres to run and payments security in terms of a six-month escrow. Acharya said some of the details can be changed going forward, but a standard depot is a must.
 
For a 12-meter bus, the subsidy amount is Rs 55 lakh and for 9-meter bus it is Rs 45 lakh. Acharya said Kolkata is among the first cities to show interest in the preliminary stages. CESL was formed as a subsidiary of EESL in November 2020 to push solarisation and electric mobility schemes and launch new programs for the same.
 
EESL is a joint venture of four public sector utilities under the Ministry of Power — NTPC Limited, Power Finance Corporation Limited, REC Limited and Power Grid Corporation of India. It is India’s first Energy Service Company (ESCO), which enables consumers, industries and governments to effectively manage their energy needs through energy efficient technologies.