A recent report by the India Energy and Climate Center (IECC) and the Power Foundation of India has found that deploying 500 GW of clean energy capacity by 2030 and over 600 GW by 2032 is India’s most cost-effective path to achieving its energy goals. This rapid expansion of clean energy capacity will require an investment of $380 billion (₹30 lakh crore) in new power generation and grid infrastructure by 2032. However, it will also lead to significant cost savings for consumers, with an estimated annual saving of ₹60,000 crore in power costs.
The report, titled “Strategic Pathways for Energy Storage in India Through 2032,” highlights the importance of energy storage in achieving India’s clean energy vision. The country will need to scale up its energy storage capacity to 61 GW (218 GWh) by 2030 and 97 GW (362 GWh) by 2032, which will require a significant investment of $40-50 billion (₹ 3-4 lakh crore) in storage by 2032. However, the payoff will be enormous, with consumers saving nearly $7 billion (₹60,000 crore) every year in power costs.
The report notes that clean power paired with storage is now the cheapest way to meet power demand, with battery prices having fallen by 65% since 2021. Solar and storage projects can deliver consistent, stable power during peak periods at ₹3–₹3.5/kWh, making them a more viable option than traditional thermal power plants. Moreover, the construction of these projects is faster and cheaper, taking up to 2 years to be built, compared to traditional power plants.
The report’s findings are significant, as they suggest that India can achieve its energy goals while reducing power costs for consumers. The average power procurement costs for discoms could decline in real terms by 2032 if storage targets are achieved. The report’s authors emphasize the need for bold policy and market action to support the rapid expansion of energy storage and clean energy capacity.
Overall, the report provides a roadmap for India’s energy sector, highlighting the importance of energy storage and clean energy capacity in achieving the country’s energy goals. With the right policies and investments, India can reduce its reliance on fossil fuels, decrease power costs, and achieve a more sustainable and resilient energy system. As Srikant Nagulapalli, Additional Secretary of the Ministry of Power and Director General of the Power Foundation of India, notes, “Energy storage is at the core of India’s clean energy vision. It’s the backbone of a flexible, resilient power system that can handle peak loads, harness the full potential of renewables, and support grid stability.”