Energy Storage in South Asia: Understanding the Role of Grid-Connected Energy Storage in South Asia’s Power Sector Transformation

During the last decade, the cost of energy storage technologies, primarily lithium-ion battery energy storage systems (BESS), has declined rapidly and is projected to decline further over the next decade. This study provides a first-of-its-kind assessment of cost-effective opportunities for grid-scale energy storage deployment in South Asia both in the near term and the long term, including a detailed analysis of energy storage drivers, potential barriers, and the role of energy storage in system operations. We conduct scenarios-based capacity expansion modeling to assess when, where and how much energy storage can be cost-effectively deployed in India through 2050. The analysis relies on state-of-the-art modeling approaches to uncover and compare the value streams of battery storage with different durations as well as pumped storage hydropower. We also run hourly simulations of system operations in 2030 and 2050 to understand how energy storage will be utilized by system operators to help integrate RE and reduce operating costs. For Bangladesh, Bhutan, and Nepal, we use operational simulations to explore how increasing deployment of energy storage can help optimize the use of domestic resources and cross-border electricity trade.