Batteries now cheap enough to make solar dispatchable, Ember report shows

The recent report by Ember, highlighting that battery energy storage costs have plummeted to an economically viable $65 per MWh, marks a pivotal moment in the global energy transition, with profound implications for India. For years, the Achilles' heel of renewable energy sources like solar and wind has been their intermittency – solar panels only generate electricity when the sun shines, and wind turbines only when the wind blows. This inherent variability makes it challenging to integrate high shares of renewables into national grids, often requiring conventional fossil fuel plants to 'balance' the grid, thereby undermining the full environmental benefits.

Historically, the high cost of energy storage solutions has been a significant barrier to making renewables truly 'dispatchable' – meaning available on demand, much like a conventional power plant. Utilities and grid operators have grappled with managing peak demand and ensuring a stable power supply without relying heavily on 'peaker plants' (typically gas-fired) that can quickly ramp up production. The breakthrough cost of $65/MWh changes this equation dramatically. It makes storing excess daytime solar power for use during the night not just technically possible, but economically attractive, paving the way for a genuine 24/7 renewable energy supply.

Several key stakeholders are deeply involved and stand to benefit from this development in India. Firstly, the **Government of India**, particularly the Ministry of New and Renewable Energy (MNRE) and the Ministry of Power, is a primary stakeholder. This cost reduction significantly boosts India's ambitious targets, such as achieving 500 GW of non-fossil fuel installed capacity by 2030 and its net-zero emissions goal by 2070, as committed under the Paris Agreement. Policy support, through initiatives like the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery manufacturing, aims to localize production and further drive down costs.

**Distribution Companies (DISCOMs)**, which are often financially strained, will find it easier to procure and manage renewable energy, potentially reducing their reliance on expensive peak power purchases and improving grid stability. **Renewable energy developers** (e.g., Adani Green Energy, ReNew Power, Tata Power Solar) can now offer 'round-the-clock' (RTC) renewable power, increasing their market competitiveness. **Battery manufacturers** (both domestic and international players looking to invest in India) will see a surge in demand, fostering innovation and creating jobs. Ultimately, **Indian citizens** will benefit from more reliable, cleaner, and potentially more affordable electricity, contributing to improved quality of life and public health.

For India, this development is monumental. Economically, it can reduce the nation's colossal import bill for fossil fuels, enhancing energy security and insulating the economy from volatile global energy prices. Politically, it strengthens India's position as a leader in climate action and sustainable development on the global stage. Socially, it promises more consistent power supply, especially for remote and rural areas, which can spur economic activity and improve access to essential services. This aligns with the Directive Principles of State Policy (DPSP) under **Article 48A** of the Indian Constitution, which mandates the state to protect and improve the environment and safeguard forests and wildlife. Furthermore, the right to a healthy environment is often read into **Article 21 (Right to Life)** by the judiciary, making clean and reliable energy a fundamental aspiration.

The historical context shows India's journey from energy deficit to a growing focus on renewables. The **Electricity Act, 2003**, provided the regulatory framework for the power sector, and subsequent policies like the National Tariff Policy (2016) introduced mechanisms like Renewable Purchase Obligations (RPOs) to encourage renewable energy adoption. However, grid integration remained a challenge. This cost breakthrough directly addresses that long-standing issue, enabling a seamless transition away from fossil fuels.

The future implications are transformative. We can expect accelerated investment in grid-scale battery storage projects, potentially leading to a 'grid of the future' that is smart, resilient, and predominantly powered by renewables. India could emerge as a significant hub for battery manufacturing and associated technologies. This also complements other initiatives like the National Green Hydrogen Mission, as renewable energy is crucial for producing green hydrogen. The ability to store and dispatch solar energy effectively will significantly reduce India's carbon footprint, mitigate air pollution, and help the nation achieve its ambitious climate targets, ensuring sustainable development for generations to come.