KOCHI: Even as the KSEB is striving to meet the rising power demand during peak hours, N R Joy, former chief of the Kerala Planning Board’s industries and infrastructure division, has proposed a community-based battery energy storage system that helps consumers install a solar-powered energy management mechanism to meet their daily power requirements. A proposal has been submitted to the Kollam district panchayat for the implementation of a pilot project.
The Community Battery Energy Storage System (CBESS) offers a practical solution that combines renewable energy, public participation, and grid support. More than a technical solution, it is a new model of energy democracy. A special purpose vehicle (SPV) will own and operate the battery system, while KSEB provides grid integration, smart metering, dispatch coordination, and settlement support. A typical pilot may include 200 households connected to an 11 kV transformer, 600 kW of rooftop solar capacity, and a 1 MW/4 MWh community battery capable of providing around four hours of backup and peak support.
“A Community Battery Energy Storage System is a shared battery storage solution tied to the distribution transformer,” Joy said. “Around 200 consumers can collectively invest in a community battery instead of installing solar panels on every rooftop. The KSEB will provide grid integration, metering, dispatch control and settlement support with the help of a special purpose vehicle, which will own the battery.”
The KSEB provides Rs 3.25 per unit to consumers who have installed solar power system with grid connectivity. The cost of installation of a 5 KW solar plant is Rs 2.25 lakh after deducting subsidy. The consumer has to invest an additional Rs 1 lakh for battery backup. Under the community battery system, however, 200 consumers can avail solar power backup with an investment of Rs 25,000.
The total investment for a 1 MW project with existing solar plant is Rs 1.2 crore. The resource mobilisation model includes a Rs 10-lakh investment by the local body, Rs 15-lakh clean energy fund from the Centre, Rs 5 lakh from the KSEB and a bank loan of Rs 40 lakh. If it is a new community solar plant with battery storage system, the total investment for a 0.5 MW unit will be Rs 4.425 crore. The community equity will be Rs 1.25 crore and individual investment around Rs 75,000. With an annual revenue of Rs 1.075 crore, the investment return rate will be 13% to 16%.
For the participant consumers, the project will ensure low electricity bill, annual dividend and back-up power. The KSEB is facing a 300 MW shortage of power during peak hours and and meets the demand by purchasing from the Real Time Market at an exorbitant rate of Rs 9 to Rs 14 per unit. The CBESS will provide additional power at a lower rate to KSEB, helping reduce dependence on expensive power.
“The BESS will have a backup for four hours, and if the KSEB pays Rs 7 per unit, the consumers will get their investment back within five years with an average internal rate of return of 11% to 14%. The KSEB is facing a power surplus problem during daytime due to high patronage. The CBESS will help store the power for peak-hour consumption without additional investment from the KSEB,” Joy said.
KSEB chairman M G Rajamanickam said the board is planning to implement CBESS. “Studies are on to solve the technical issues. There’s a Rs 100-crore budget allocation for the project. There are some technical problems, like distribution channel and transformers. The project cannot be implemented everywhere,” he said.
For 1 MW project with existing solar plant
Model Pilot Project
Consumers: 200 households
Transformer: 11 kV
Rooftop solar: 600 kW
Community battery: 1 MW/ 4 MWh
Backup duration: 4 hours
Interconnection: 11 kV transformer
Community Preference Shares: For local residents, Kudumbashree, cooperatives and diaspora
Resource Mobilisation
200 consumers paying C25,000 each: C50,00,000
LSGD contribution ( Land/Infra): C10,00,000
CSR / NABARD/ Clean Energy Fund: C15,00,000
KSEB Facilitation: C5,00,000
Bank Debt/NHPC/ANERT: C40,00,000
Total: C1.2 crore
Model Project Details
0.5 MW plant
Solar plant : C3.20 crore
Battery storage : C0.85 cr
Grid and connected works: C0.375 crore
Total : C4.425 crore
Community equity: C1.25 crore
Annual generation: 16.4 lakh kilowatt hour
Annual revenue: C1.075 crore
Annual net surplus: C0.29 crore to C0.61 crore
Equity Rate of return: 13% to 16 %
Return of investment: 4 to 6 years
Project life: 25 years
Five battery energy storage system (BESS) projects funded by KSEB expected to become operational by October 2026
