Pakistan’s power regulator, NEPRA, has approved a key change for new renewable energy projects. The authority has allowed the government to make Battery Energy Storage Systems (BESS) mandatory in an upcoming auction for 800 megawatts of solar and wind capacity.
The decision was taken to improve grid stability and address the “duck curve” problem. This happens when solar power produces a lot of electricity during the day, then drops sharply in the evening when demand rises. Batteries can store extra daytime power and release it later when it is needed most.
Under the new rules, any solar or wind project taking part in the auction must install a co-located battery system. The firm capacity of the battery must be at least 10 percent of the project’s generation capacity. The overall auction target is 800 MW, and the first block has been set at 400 MW. For this first round, the 10 percent rule is expected to add around 40 MW of battery capacity and about 160 megawatt-hours of storage.
The Independent System and Market Operator (ISMO) can now issue the request for proposals for the first auction. Bidding for this round will remain open for a fixed two-month period. NEPRA also noted that the storage requirement should help reduce the amount of renewable power that has to be curtailed, while having little effect on electricity prices.