Why Energy Storage and Timely Action are Critical for India’s Green Transition
Mr. Ramesh Shivanna
Chief Technical Officer
Nithin Sai Renewables Pvt. Ltd.
Bright Future Ahead
Imagine a world where electricity during the day is almost free. Sounds like a dream, right?
Well, that future has already begun to show glimpses in India. Recently, the India Energy Exchange (IEX) reported near-zero electricity prices during midday hours when solar energy generation is at its peak. While this may sound like good news, it also comes with hidden challenges — and important lessons for India’s clean energy future. The IEX chart shows the market Clearing prices (MCP) Rs 0.3/kWh, near to zero on 24th May 2025, during the time 12.00 noon when the power sellers are more and purchasers are low from IEX.
Why is power getting so cheap during the day? Thanks to the growing use of solar and wind energy, we’re producing more electricity than we need — especially during sunny midday hours. This surplus supply pushes the price of electricity down, sometimes close to zero. Think of it like a farmers’ market overflowing with tomatoes. When there’s too much supply and not enough buyers, prices drop.
This is not just happening in India. In 2023, countries like Sweden saw over 400 hours of negative electricity prices — meaning they were paying people to take power off the grid! There have been incidences in US markets as well.
Why It’s Not All Good News
While low prices may sound like a win for consumers, they can actually create problems:
- Power generators may not earn enough to stay viable.
- Grid stability becomes harder to manage.
- Excess energy gets wasted if there’s no way to store it.
That’s where timely corrective actions come in.
The Role of Energy Storage: A Game-Changer
When solar power is high and prices drop, we need somewhere to store the extra electricity for use later— especially during evening hours when the sun goes down and demand peaks.
Battery Energy Storage Systems (BESS) can do exactly that. They help:
- Soak up surplus energy during the day
- Release it when it’s needed most
- Reduce our reliance on polluting thermal power during peak hours
Investing in storage is like building lakes/water tanks in a rainy season – you save now to use when it’s dry.
Smart Ideas for a Smarter Grid
To handle this shift, India needs: demand response programs – encouraging factories or large buildings to use more power when it’s cheapest, time-of-use tariffs – charging different rates at different times of the day to spread demand more evenly. This is where the smart meters make the difference.