Expert Speak Terra Nova
Published on Oct 31, 2023
The Power of Energy Cloud Solutions

I. The pressures on the current electric grid 

India is currently the third-largest energy consumer in the world. In the next two decades, India’s energy demands will necessitate the creation of a power infrastructure equivalent in scale to the European Union’s existing power system. While energy use has doubled over the last two decades, India’s per capita energy use is still lower than half of the world average, implying that the latent energy demand is high and transmission of electricity to end-consumers is inefficient. Furthermore, over 270 million people are set to join India’s urban population over the next two decades, which will bring about a requirement of significant additions across electricity generation to distribution.

India’s electric grid sector has been undergoing a massive transformation on the back of a sustained rise in renewable energy. While renewables have economic and environmental advantages, as an energy source, they are intermittent in nature and require energy storage systems to effectively integrate into the current electricity infrastructure, manage peak power loads, and balance the grid stability. Centralised energy storage is usually in the form of i) spinning turbines, so that power generation companies can ramp up production if demand spikes; or ii) coal or diesel backup generators that can be fired up quickly. However, these approaches are either costly, polluting, or both.

By contrast, clean energy storage solutions such as batteries and pumped hydro-storage systems are already being used globally, while other storage technologies, such as flywheels, supercapacitors, and green hydrogen, are in the early stages of development. More than US$5 billion was invested in Battery Energy Storage Systems (BESS) in 2022; and the global BESS market is expected to reach between US$120 billion and US$150 billion by 2030, more than double its size today.

A battery system can be installed for the primary purpose of shifting peak electricity consumption from a time when the distribution or transmission is congested to a time when capacity is available.

Batteries represent a wide range of technologies that can provide numerous benefits to the grid. Importantly, a single battery can provide several services over its life. For example, a battery system can be installed for the primary purpose of shifting peak electricity consumption from a time when the distribution or transmission is congested to a time when capacity is available. This may only require the battery to be dedicated to this service for a few hours each day. When that battery is not providing this peak shifting service, it can be used as a firming or flexibility resource to smoothen renewable generation to better match demand.

However, building standalone storage is broadly unviable because most of the requirement is for short-duration storage, within four hours each day. Cloud storage is therefore the best solution, as utilities do not have to build out storage on their own and can access it on a pay-per-use basis, which also allows them to scale up quickly.

II. Sheru’s Solution: Building affordable and easy access to energy storage

Sheru, an innovative player in India’s energy sector, is revolutionising the way that energy is managed and utilised. Sheru initially worked on providing battery swapping infrastructure as a service to three-wheeler (3W) electric rickshaws. When the COVID-19 pandemic struck, and mobility services came to an abrupt halt due to lockdown measures, we wanted to think of an alternate use for the Electric Vehicle (EV) batteries that were lying idle. We developed the idea of a virtual cloud storage network (which later became NetBat), wherein the idle batteries could be virtually aggregated to provide energy storage facilities to utilities. 

NetBat, a flagship product of Sheru, is a network-based solution that plays a vital role in enabling the seamless integration of energy storage into India’s evolving energy ecosystem.

This is in keeping with a broader move towards Industry 4.0, which is a digital transformation of manufacturing processes and products, such as Artificial Intelligence (AI), the Internet of Things (IoT) and the Cloud. By promoting connectivity across battery assets, this allows for the opportunity to monitor these assets through data analytics and insights, which can lead to cost savings and a cleaner, more flexible and resilient power supply.

The Power Of Energy Cloud Solutions

NetBat, a flagship product of Sheru, is a network-based solution that plays a vital role in enabling the seamless integration of energy storage into India’s evolving energy ecosystem. It empowers distribution companies and grid operators to leverage the power of energy storage on a pay-per-use basis. It also provides a revenue stream to owners of the battery assets, making EVs more affordable and in turn driving forward the transition to electric mobility. The effects of our solution have been particularly transformative in the lives of those at the bottom of the pyramid, namely the drivers of the 3W e-rickshaws, as they can access a cleaner and cheaper form of mobility, with a lower total cost of ownership.

The key characteristics of NetBat include:

  1. Energy Storage Optimisation: By leveraging advanced analytics and intelligent algorithms, it maximises the efficiency and optimum usage of energy storage systems, allowing distribution companies to dynamically manage energy demand and supply, reducing reliance on conventional power sources and promoting clean energy integration.
  2. Grid Stability and Resilience: NetBat enhances grid stability and resilience by providing energy storage capacity during peak demand periods or grid emergencies. It enables smoother integration of intermittent renewable energy sources and helps mitigate the challenges of grid intermittency, ensuring a reliable and stable power supply for consumers.
  3. Demand Response and Flexibility: NetBat facilitates demand response programmes by coordinating the discharge of energy storage systems based on grid signals and pricing signals. This flexibility allows for the optimisation of energy usage and reduces strain on the grid during periods of high demand, contributing to cost optimisation and improved grid reliability.

III. Challenges to scale and recommendations for key actors

Owing to its intermittent nature, integrating renewables sources to the electric grid poses a significant challenge to the overall grid stability. A sharp increase or decrease in power production would adversely impact the grid, and there needs to be solutions that can absorb or release energy instantly as needed. With Time of Day (ToD) tariffs set to play a greater role in the coming years, analytics that can provide data on energy storage systems would unlock significant value for utilities.

Policymakers must incentivise the deployment of energy storage solutions such as NetBat by providing financial incentives, streamlining regulatory processes, and establishing clear guidelines for grid integration.

Other challenges persist including the need for regulatory support and a favourable administrative framework. Policymakers must incentivise the deployment of energy storage solutions such as NetBat by providing financial incentives, streamlining regulatory processes, and establishing clear guidelines for grid integration. In the same vein, there are a number of startups working on clean energy and mobility in India. For these to reach their potential, there has to be greater risk and growth capital available for these companies to grow and scale. Stakeholder engagement and collaborative partnerships among relevant actors in the ecosystem will be key in addressing these challenges. To this end, Sheru aspires to establish alliances with distribution companies, technology providers, and financiers with the aim to promote trust, encourage knowledge sharing, and foster cooperation among the stakeholders in order to ensure a smooth energy transition.

IV. Conclusion

India is experiencing rapid economic growth 75 years after its independence. But along with this economic growth comes the burden of rising carbon emissions. In response, India has set an ambitious goal: To derive 60 percent of its electricity from renewable sources, aiming to decouple economic growth from emissions. The Sheru team is dedicated to supporting India’s quest for a cleaner, greener, and more sustainable growth path by leveraging our energy cloud technology to integrate renewables into the power grid.


Ankit Mittal is the CEO and Founder of Sheru.

Kavin Aadithiyan is the Marketing Manager at Sheru.

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