KARACHI: Battery energy storage systems (BESS) in combination with solar and wind power can bring down electricity prices to as low as 6-8 cents per unit and they can also serve communities living far off the national grid.
This was the crux of a study titled "Integrating Battery Storage with Renewables: A techno-economic analysis," launched here on Tuesday. The study which delineates the various use cases of BESS integrated with renewables and demonstrates how this hybrid proposition can meet the variational nature of demand in Pakistan power sector is a joint product of Renewables First (RF) and the Policy Research Institute for Equitable Development (PRIED), two independent think-tanks based in Islamabad.
The study explains how integrating cutting-edge technologies like BESS with renewable energy offers multiple advantages, including firm capacity, peak support, alleviation of frequency regulation issues, and grid stability. It states that these hybrid systems can be utilized by renewable energy developers to offer customized products tailored to consumers' demand profiles. It also highlighted that the government needs to act now and create an enabling environment for the market player, especially by removing the hurdles facing the operationalization of the Competitive Trading Bilateral Contracts Market (CTBCM). The national grid will lose its demand and market share as major industrial, commercial, and other bulk power consumers are prioritizing and investing in off-grid solutions, it says.
Ubaid Ullah Khan, a researcher at the Renewables First and one of the authors of the study, presented its findings to an audience comprising the representatives of the energy industry, government, academia, and news media. He highlighted the assurance of a consistent and cheap supply of power to industrial consumers if batteries were integrated with renewable energy sources. He also said that using renewable energy sources with batteries during periods of peak demand could save the national exchequer millions of dollars.
His presentation was preceded by a keynote speech by Mujtaba Haider Khan, CEO, of Reon Energy, a private firm specializing in battery energy storage systems. He explained the techno-commercial viability of installing batteries at both ends: on the grid as well as off the grid. He also stated that an electricity generation system that combines batteries with wind and solar power has the potential to save millions of dollars for the national exchequer by controlling frequent power breakdowns. He emphasized the need for setting clear targets and developing a dedicated policy framework at the government level to facilitate and incentivize the uptake of renewable energy systems, similar to how our neighbouring countries are doing.
The presentation of the study was preceded by a panel discussion, moderated by Samir Ahmad, CEO of Energy Futures, a private consultancy. The panellists who spoke during this discussion included Aysha Ahmed from RE-Empower, Ovais Fazal from Liberty Mills, Faisal Murad from ENA Pakistan, Abu Bakar Ismail from Amreli Steels, Altaf Gul Muhammed from Yunus Textiles and Anila Fatima from One Network.
Abu Bakar Ismail from Amreli Steels mentioned the potential benefits of using batteries with renewable energy sources such as the supply of cleaner and cheaper electricity to the industries, given the increased accountability on their scope 2 and scope 3 emissions along with the opportunity to maximize the revenue streams through market arbitration.
Anila Fatima from One Network highlighted that the industrial consumers will drive the major demand for clean energy solutions and capitalizing on these opportunities would require technology advancements, scalability, and after-sale services.
Faisal Murad from ENA Pakistan shared details on different chemistries of battery technologies such as super capacitors, lithium-ion, lead-acid, etc. He also listed the various use cases of these technologies during the panel discussion.
Aysha Ahmed from RE-Empower highlighted the importance of installing BESS to meet Pakistan ambitious policy targets of inducting 30% renewables into its generation mix. She also mentioned that although BESS is not a generating source, it can still provide avenues for making profits through strategic charging and discharging.
Ovais Fazal from Liberty Mills, mentioned the issues of unreliable power from the national grid for the industries as it is neither secure nor clean. He also highlighted that the limitations associated with the transmission and distribution infrastructure are a bigger challenge compared to the installation or usage of renewable energy sources.
Altaf Gul Muhammed from Yunus Textiles mentioned that there was a huge potential for cost savings offered by the BESS-RE combination as these systems increase grid stability and prevent breakdowns.
The study launch began with remarks by Muhammad Badar Alam, CEO of PRIED. He highlighted that the power sector of Pakistan is going through a crisis due to hasty and flawed policies and decisions by the policymakers back in the 2010s. He also shared his views on the general misconception that local coal is a cheaper source of electricity as compared to renewable energy sources, such as wind and solar. He further highlighted the issue of data transparency and accountability within the power sector.
Copyright Business Recorder, 2024
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