India has reached a significant milestone in its transition to clean energy, with over 50% of its installed power capacity now coming from non-fossil sources. This achievement is five years ahead of schedule and is a result of the country’s rapid scale-up of renewable energy sources. A new study by the India Energy and Climate Centre (IECC) and the Power Foundation of India has found that India can consolidate its leadership in clean energy and meet its 2030 goals at the lowest cost by deploying 500 GW of clean energy capacity by 2030 and over 600 GW by 2032.
The study, titled “Strategic Pathways for Energy Storage in India Through 2032,” highlights the importance of energy storage in achieving a reliable and low-cost energy future. India will need to deploy 61 GW of energy storage by 2030 and 97 GW by 2032, a significant increase from the current 6 GW. The study estimates that this will require an investment of $40-50 billion in storage by 2032, but the payoff will be enormous, with consumers potentially saving nearly $7 billion annually in power costs.
The study found that clean power paired with storage is now the cheapest way to meet demand, with battery prices dropping 65% since 2021. Solar-plus-storage projects can deliver firm power during peak periods at a cost of Rs 3-3.5/kWh, with construction timelines of just 18-24 months. The study also highlights the importance of policy and market action in supporting the scale-up of energy storage, including storage obligations for discoms, incentives for co-located projects, and clear market rules for revenue stacking.
The report also notes that the grid can remain reliable through 2032, with energy storage meeting peak demand and balancing variable solar and wind generation. However, by 2032, 50-70 GW of costly thermal capacity is expected to run at less than 30% plant load factor, raising the risk of stranded assets. The study stresses that rapid scale-up will only be possible with the right policy, regulatory, and market frameworks, including support for domestic manufacturing.
India’s battery manufacturing base is already expanding, with over 200 GWh of capacity expected by 2030. The study concludes that energy storage is key to achieving a reliable, low-cost, and independent energy future, and that India has the potential to secure a leadership position in clean energy with the right policies and investments in place. Overall, the study provides a roadmap for India to achieve its clean energy goals and highlights the importance of energy storage in achieving a sustainable and reliable energy future.