Thehindubusinessline iconThehindubusinesslineSep 27, 2026 ~4 min source read

After sunset, BESS is the best option for energy security

Battery energy storage systems are shifting from niche support for solar to an electricity-market tool that shifts cheap generation into high-value hours and helps meet growing evening demand in India.

After sunset, BESS is the best option for energy security

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Useful takeaways from this story.

Regulatory change: CTUIL now allows increases in storage capacity (MWh) for grid-connected BESS without increasing approved MW connectivity, giving developers a clearer route to expand duration.

Market signal: Day-ahead market spreads and repeated ₹20/kWh price spikes show strong arbitrage potential for batteries, especially as solar moves cheap charging into afternoon hours.

The useful part

How battery energy storage system is proving key to solar generation and supply By M Ramesh Updated. Government agencies are beginning to adapt the rules to make storage easier to deploy. A 100 MW/200 MWh battery can, for instance, become a 100 MW/400 MWh battery by adding storage capacity while retaining the same grid connection and power conversion capacity.

How it works

  • The exercise shows that arbitrage opportunities have generally strengthened, with FY2025-26 emerging as the strongest year for most configurations.
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  • And, increasingly, the market itself is sending the signal.
  • Former Grid-India CMD SR Narasimhan recently did a study by modelling the arbitrage potential of a 1 MW BESS using four years of day-ahead market data — 96 time blocks a day, 365 days a year, six storage...

What to take from it

The other finding is equally interesting: longer-duration batteries earn more, but with diminishing returns. The latest example is the Central Transmission Utility of India (CTUIL), which last week issued a procedure for BESS projects that have grid connectivity to seek an increase in their energy-storage capacity (MWh) without increasing their approved charging/discharging capacity (MW). CTUIL's move gives developers a regulatory route to do this rather than having to treat the increase in MWh as an increase in grid connectivity.

Example or evidence

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  • At the same time, India's peak demand touched a September record of 269 GW on September 10.
  • Gas-based generation jumped 80.32 per cent year-on-year during September 1–9 as the system leaned on flexible generation to meet the evening shortfall.
  • If ₹20 electricity is the price of getting power at the wrong hour, then the battery suddenly starts looking less like an accessory to renewable energy and more like the thing that makes renewable energy...

Details worth keeping

After sunset, BESS is the best option for energy security. Pending clarification, it is not seeking BG-3 for such applications. The battery captures the most attractive price spreads first.

Related coverage

  • Greaterkashmir: Srinagar, Sep 5: Jammu and Kashmir has a fresh opportunity to accelerate its transition to solar power, with the Centre significantly expanding financial support for renewable energy.
  • Greaterkashmir: We need enough electricity.
  • Greaterkashmir: Srinagar, Sep 2: Jammu and Kashmir's recurring electricity crisis may have a partial solution in three developments already taking shape — rooftop solar, smart metering and the newly introduced Time-of-Day...
  • Theguardian: Batteries now meet almost half of the grid's dispatchable power needs during hours of highest demand Follow our Australia news live blog for latest updates Get our breaking news email, free app or daily...
  • Greaterkashmir: Srinagar, Sep 4: While India's solar power capacity has surged past 164 GW, Jammu and Kashmir had installed only around 80 MW by early 2026 — leaving the Union Territory at risk of missing another major...

More context around this story.

Catch the sun before it sets
Greaterkashmir iconGreaterkashmirSep 6, 2026

Catch the sun before it sets

Srinagar, Sep 5: Jammu and Kashmir has a fresh opportunity to accelerate its transition to solar power, with the Centre significantly expanding financial support for renewable energy. But to make the most of this window, J&K will need to put substantial resources of its own behind the effort and treat solarisation as a

Direct from Sun
Greaterkashmir iconGreaterkashmirSep 10, 2026

Direct from Sun

We need enough electricity. We need affordable electricity. We need non-hazardous electricity. We need environment-friendly electricity. We need electricity for every household, everywhere in J&K—365 days a year, 30 days a month, 7 days a week, and 24 hours a day. No outage, no drop in voltage, no pilferage, no transmi

J&K must not miss the solar bus
Greaterkashmir iconGreaterkashmirSep 5, 2026

J&K must not miss the solar bus

Srinagar, Sep 4: While India’s solar power capacity has surged past 164 GW, Jammu and Kashmir had installed only around 80 MW by early 2026 — leaving the Union Territory at risk of missing another major energy opportunity. The contrast is stark: a region once criticised for failing to harness its vast hydropower potent

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