There needs to be an overarching energy policy that addresses environmental issues and also ensures affordable supply
By Auroville Consulting Team
The Levelized Cost of Energy (LCOE) of a diesel generator (DG) set and the Levelized Cost of Storage (LCOS) of a lithium ion (Li-ion)-based Battery Energy Storage System (BESS) were compared for different hours of autonomy or back-up while considering a range of capital costs. The results indicate that the LCOE of DG sets varies between INR 49.58/kWh to INR 57.63/kWh. The LCOS of BESSs, when charged at a solar tariff of INR 3.95/kWh, varies between INR 39.71-61.72/kWh, when charged at an industrial tariff of INR 6.67/kWh, it varies between INR 43.71-65.71/kWh, and when charged at a commercial tariff of INR 8.40/kWh, it varies between INR 46.25-68.25/kWh. The LCOE of the DG set is found to be most vulnerable to diesel prices, while the LCOS of the BESS is largely dictated by the market prices of the Li-ion battery packs.
When considering the average capital costs of both back-up systems, the analysis indicates that the per unit cost of energy from a BESS charged at the solar tariff is the most economical option for all hours of autonomy. The per unit cost of DG is less in comparison to the per unit cost of BESS when charged from the grid at the industrial and commercial tariff, for all hours of autonomy or back-up. However, further analysis indicated that were the generator subsidy scheme (currently available in Tamil Nadu) transferred from DG sets to BESSs, the latter can become a more economical back-up option even when charged from the grid.
In addition to the economic evaluation, the BESS and DG were also assessed in terms of externalities. Both technologies have different emission profiles and emission points, which include air pollutants and greenhouse gases. Emission levels for BESS varied depending on the source of electricity used to charge the system.
Uma of pv magazine states that “In Tamil Nadu, the state government provides capital subsidy on DG generators for medium, small, and micro enterprises.
“The BESS and DG were also assessed in terms of externalities. Emission levels for BESS varied depending on the source of electricity used to charge the system.”
In conclusion, BESS charged with solar provides the cleanest form of backup power since no emissions are generated during power generation.
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