India’s power sector has reached a critical point where energy storage, grid flexibility, and policy execution will determine the country’s ability to sustain economic growth while meeting climate commitments. The Indian Power & Energy Storage Conference 2025, held in New Delhi, brought together policymakers, regulators, and industry executives to discuss the sector’s challenges and opportunities. With over 500 GW of installed capacity, India is the world’s third-largest electricity producer, and the focus is shifting towards system sustainability.
Renewables now account for more than 50% of installed capacity, but thermal power still supplies nearly 70% of actual electricity. The government is proposing changes to the Electricity (Amendment) Bill to improve distribution efficiency, enhance market development, and optimize infrastructure utilization. Data analytics, artificial intelligence-enabled grid management, and performance-linked incentives are seen as critical enablers for a stable and future-ready power system.
The distribution sector is a key area of focus, with technology identified as the key to improving operational efficiency and financial performance. Smart metering and smart grids are driving a turnaround in the distribution sector by improving billing efficiency, revenue realization, and consumer empowerment. However, industry representatives raised concerns about the technical and financial pressures facing existing generation assets, particularly thermal power plants.
Flexible operation of thermal power plants is becoming essential with rising renewable penetration, but it must be implemented in a way that safeguards plant health and long-term viability. Policy clarity, technology adoption, and financial sustainability must progress simultaneously to support the sector’s growth. Energy storage is seen as the critical missing component for grid stability, and policy incentives and rationalized transmission charges are needed to accelerate its deployment.
The conference emphasized the importance of balanced planning across generation, transmission, and storage infrastructure to ensure a stable and sustainable power system. With India’s energy transition not only about climate action but also about achieving energy independence and supporting rapid economic growth, the sector’s development will be crucial to the country’s future. The government and industry leaders must work together to address the challenges and opportunities in the power sector, including the integration of renewables, the role of thermal power, and the development of energy storage and grid flexibility.