Ember Energy has released an interesting report which simulates the DAM market in the power exchange and predicts that Merchant BESS systems in India are now profitable and can generate a healthy IRR purely by arbitrage opportunities.

https://ember-energy.org/latest-insights/the-age-of-storage-batteries-primed-for-indias-power-markets/

As India's power sector is experiencing a revolutionary transformation, Battery Energy Storage Systems (BESS) emerge as the ultimate solution for grid stability and energy efficiency. With renewable energy penetration increasing rapidly, the need for reliable power backup solutions and uninterrupted power supply has never been more critical.

𝗞𝗘𝗬 𝗠𝗔𝗥𝗞𝗘𝗧 𝗗𝗘𝗩𝗘𝗟𝗢𝗣𝗠𝗘𝗡𝗧𝗦:

• Financial Viability Achieved: 2024 marked the first year when potential BESS revenues exceeded annualized capital costs, making merchant battery projects commercially viable

• Impressive Returns: Industrial UPS and grid-scale battery projects now offer 𝗜𝗡𝗧𝗘𝗥𝗡𝗔𝗟 𝗥𝗔𝗧𝗘𝗦 𝗢𝗙 𝗥𝗘𝗧𝗨𝗥𝗡 (𝗜𝗥𝗥) 𝗨𝗣 𝗧𝗢 𝟮𝟰%, making them attractive investment opportunities

• Cost Reduction: Battery costs have declined by 80% since 2015, while revenue opportunities have increased fivefold, fundamentally changing the economics

• Price Volatility Management: BESS systems effectively address extreme price swings, with 17% of trading hours in 2024 witnessing prices above INR 9/kWh

• Grid Balancing Services: Fast-acting energy storage systems provide critical ancillary services, maintaining frequency regulation and supporting renewable energy integration

• Multiple Revenue Streams: Battery systems can earn through day-ahead market arbitrage and ancillary services, ensuring robust power quality and reliability

Conclusion

The convergence of declining battery costs and increasing price volatility has created unprecedented opportunities in India's power markets. BESS technology is no longer just a backup solution—it's a strategic asset driving the energy transition while delivering substantial returns.

Ready to harness the power of advanced energy storage solutions? Contact 𝗣𝗨𝗥𝗘 𝗘𝗡𝗘𝗥𝗚𝗬 today at www.pureenergy.co.in for cutting-edge battery energy storage systems tailored to your industrial needs.

#BESS #powerexchange hashtag hashtag #merchantbess hashtag #solar