Time-Shifting (Energy Arbitrage)
The battery stores electricity when power is cheap or abundant (e.g., solar generation during midday or off-peak hours) and discharges when electricity prices are high (peak demand periods).
India's solar energy buildout has been unexpectedly rapid, with total installed capacity nearing 130GW in 2025, representing more than half of the total generation capacity, in utility-scale power plants as well as rooftop arrays.
However, for substantial periods in the daytime, this capacity is not being utilized fully, and a large share of the renewable energy output is frequently curtailed. The ToD pricing now charges commercial consumers 20% more between 6–10 PM, creating an unexpected challenge and an economic loss.
The same evening window when that curtailed midday solar could have been dispatched from distributed storage at near-zero marginal cost.
The battery stores electricity when power is cheap or abundant (e.g., solar generation during midday or off-peak hours) and discharges when electricity prices are high (peak demand periods).
The battery reduces short-duration power peaks, lowering demand charges or peak procurement costs. The battery discharges only during the highest consumption periods to flatten the demand profile.
Batteries can reduce or completely eliminate the need to run diesel generators (DG sets) during power outages, leading to fuel cost savings of multiple order.
A BESS can store electricity from solar, wind, or low-carbon grid power and then use it to charge electric vehicles when needed, reducing dependence on fossil-fuel-heavy grid electricity, minimizing peak demand stress and carbon footprint.
Co-founder, IIM A Ventures, Bharat Innovations Fund, INFUSE and multiple initiatives and ADB Ventures 2020-2025
Founder, OctoLife. Ex-Founder & CEO at Urban Ladder. Climate tech builder and evangelist.
Founder, Social Alpha Accomplished investor with CEO-level experience
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