The Indian Ministry of Power has announced a new mandate for renewable energy implementing agencies (REIAs) and state utilities, requiring a minimum of two-hour co-located energy storage systems (ESS) to be installed in future solar projects. This move aims to mitigate intermittency issues and provide critical support during peak demand periods. According to the ministry, this requirement will lead to the installation of around 14 GW/28 GWh of storage by 2030.
The Indian government has set a target of 500 GW non-fossil fuel capacity by 2030, which will require a significant enhancement in the capacity of variable renewable energy sources like solar and wind. However, these intermittent sources can pose challenges to grid stability, as they are not always available for generation. Energy storage systems (ESS) can help address these challenges by storing excess energy for use during low renewable energy hours, ensuring a more reliable and stable grid.
As of December 31, 2024, India had an installed ESS capacity of 4.86 GW, comprising 4.75 GW of pumped storage projects and 0.11 GW of battery energy storage systems. To integrate the planned solar and wind capacity by 2031-32, India would require 73.93 GW/411.4 GWh of storage capacity, with 26.69 GW/175.18 GWh from pumped storage and 47.24 GW/236.22 GWh from battery storage. This move is seen as a critical step towards achieving India’s renewable energy goals and ensuring a stable and reliable grid.