The Ministry of Power has issued an advisory on integrating energy storage systems (ESS) with solar power projects to enhance grid stability and optimise energy utilisation. With India targeting 500 GW of non-fossil fuel capacity by 2030, the increasing share of variable renewable energy (VRE) sources like solar and wind poses challenges due to their intermittent nature. As of December 31, 2024, the country’s installed ESS capacity stands at 4.86 GW, including 4.75 GW from pumped storage plants (PSP) and 0.11 GW from battery energy storage systems (BESS). The National Electricity Plan estimates that by 2031-32, India will require 73.93 GW/411.4 GWh of storage capacity to support 364 GW of solar and 121 GW of wind energy.
To meet this requirement, Renewable Energy Implementing Agencies (REIAs) and state utilities have been advised to include a minimum 2-hour co-located ESS, equivalent to 10 per cent of the installed solar capacity, in future solar tenders. Additionally, distribution licensees may consider requiring 2-hour storage for rooftop solar installations to enhance supply reliability and reduce over-injection during peak solar hours. Implementing this storage clause could add approximately 14 GW/28 GWh of storage by 2030, aided by the recent decline in battery prices, potentially lowering power purchase costs during high-demand evening hours.
The advisory highlights that ESS can operate in single-cycle mode, charging from co-located solar power for evening discharge, or in double-cycle mode, drawing from the grid during low-demand periods to support peak-hour supply. The integration of ESS with solar projects is expected to improve transmission efficiency, reduce infrastructure costs, and strengthen energy security while stabilising the grid and enhancing renewable energy utilisation.
