Battery-storage costs must drop 15% to avoid new coal capacity: Report
India might avoid building new coal plants and could limit its coal capacity to planned levels by 2032 if the cost of battery-storage systems drops by 15 per cent annually, according to a new report.
Nearly 75 per cent of India's electricity is generated using coal. However, to meet its goal of reaching net-zero emissions by 2070, the country needs to reduce its dependence on coal and increase the use of renewable-energy sources like solar and wind power.
The challenge is that solar and wind power plants only generate electricity when the sun is shining or the wind is blowing. Therefore, energy-storage systems are needed to store this energy and use it during periods of low generation.
The report compiled by global energy think tank Ember and the Delhi-based The Energy and Resources Institute (TERI) says if the battery energy storage system (BESS) costs continue to decline at the current rate of 7 per cent annually, India's power sector will see coal generation plateauing until 2032