A recent study by the India Energy and Climate Center (IECC) and the Power Foundation of India has highlighted the need for a rapid expansion of energy storage systems in India to meet its clean power targets. The country aims to achieve 500 GW of non-fossil electricity capacity by 2030, and according to the study, it is on track to meet this goal. However, the report cautions that delays in deploying storage could lead to a reliance on coal, which would have significant environmental implications.
The study projects that non-fossil capacity will cross 500 GW by 2030 and reach nearly 600 GW by 2032, with renewable energy generation increasing fivefold from 210 TWh in 2023 to 1,195 TWh by 2032. This surge in renewable energy will require significant investments in storage to integrate it into the grid. The analysis estimates that cost-effective storage will be essential, with a projected capacity of 61 GW/218 GWh by 2030 and 97 GW/362 GWh by 2032.
The study highlights the importance of scaling up storage at an unprecedented speed to provide clean power around the clock. This will require investments of $40-50 billion by 2032, but the payoff is significant, with potential annual savings of nearly $7 billion in power costs for consumers. The report emphasizes the need for bold policy and market reforms to support the rapid expansion of energy storage.
The study also identifies the states that are likely to see large-scale deployments of energy storage, including Gujarat, Rajasthan, Maharashtra, Uttar Pradesh, Andhra Pradesh, and Telangana. These states are rich in solar resources and will play a critical role in meeting India’s clean power targets.
In contrast, the study warns that without timely storage, India may need to add significant amounts of new coal-based capacity, which would undermine its clean power goals. The report estimates that without storage, India may need to add 57 GW of new coal-based capacity by 2030 and 80 GW by 2032, leading to an overall coal power capacity of 270 GW and 294 GW, respectively. This would have significant environmental implications and highlight the need for urgent action to scale up energy storage in India.