Investing in renewable energy is crucial to safeguard the planet’s future as the impacts of climate change in Pakistan become increasingly visible. According to a report by the International Energy Agency, a quarter of the world’s electricity now comes from renewable sources such as wind, solar, and hydroelectricity, and this percentage is expected to rise as part of decarbonization initiatives.
However, there are still concerns in the sector. The dependability of renewable energy sources is sometimes criticized due to variations in output caused by factors such as the time of day, weather, and, in the case of hydroelectric power, seasonal river flows. As a result, energy storage is increasingly used by power-intensive industries to address the fluctuation and instability of renewable energy sources. The quick growth in storage capacity in previous years is not surprising, as a system that captures energy at one time and stores it for later use is a crucial part of the backbone, enabling energy transition.
In most countries, renewable electricity is backed by government support and national targets. In June 2022, China announced its 14th Five-Year Plan for Renewable Energy, which aims to increase the share of renewable energy in electricity generation to 33% by 2025 (up from roughly 29% in 2021) and, for the first time, includes a goal for renewable heat consumption. As part of the Repower EU Plan, the European Commission proposed in May 2022 to raise the European Union’s 2030 renewable energy objective to 45%, which would require a total installed renewable capacity of 1,236 GW.
Renewable energy has progressed in two main stages. In most countries, between 2010 and 2020, the cost of renewable energy systems fell below or matched that of fossil fuels, particularly for solar and wind energy. This led to a significant increase in new initiatives. However, it has become evident that solar and wind projects significantly strain national grid systems, which can usually only handle about 30% of the extra solar and wind energy generated.
Energy storage systems are essential for the future of renewable energy. However, their deployment and integration into power systems require an enabling framework that makes financing and execution easier. This calls for widespread cooperation from numerous stakeholders. The Energy Storage Partnership (ESP), founded and managed by the Energy Sector Management Assistance Program (ESMAP), seeks to finance 17.5 gigawatt hours (GWh) of battery storage by 2025. This is over three times the current installed capacity of 4.5 GWh across all developing nations. The program has already raised $725 million in concessional funding and will deliver 4.7 GWh of battery storage (current projects), plus an additional 2.4 GWh (upcoming pipeline).
As a part of the ESP, a hybrid power purchase agreement (PPA) framework for solar PV and battery storage is being developed. This is because PPAs help establish who will purchase the electricity and at what price, providing the security required to secure project financing. Hybrid PPAs support all power projects.
Energy storage has several advantages, including reducing the wastage of renewable resources. There are times when the amount of electricity produced by renewable sources is more significant than what is required. This leads to specific renewable generators being forced to reduce their output to keep the system “balanced” when the power supply equals the demand. As a result, an opportunity to produce clean electricity has been lost. By storing the energy, renewable energy sources can continue to produce electricity even if it is not required immediately. This ensures that the energy is available for later use.
Energy storage system integration will fundamentally alter the developing world. They will accelerate the expansion of electrical access while facilitating increased usage of renewable energy, assisting in achieving the global goal of net-zero carbon emissions. Energy storage is predicted to be a vast and crucial business by 2040 when expenditure reaches trillions of dollars. Some analyses suggest that energy systems should have decarbonized to meet climate targets by then. Energy storage will be essential to attaining sustainability goals as the world shifts to a renewable future. Research, development, and infrastructure investment in storage are crucial to promoting the broad use of renewable energy sources and accelerating the world’s energy transition.
In conclusion, energy storage is crucial for a future powered by renewable energy. It bridges the gap between intermittent renewable energy production and steady energy demand, paving the way for a more sustainable and resilient energy landscape. Energy storage systems maximize the utilization of renewable resources, provide flexibility, and support the integration of developing technologies. By promoting the use of solar energy, governments can speed up the transition to a more sustainable energy future. Promotional programs for solar energy can enhance energy security. Local solar energy production can promote energy independence and reduce reliance on foreign energy sources.
The writer is a working journalist who writes on Pakistan’s water, energy and climate change issues.
