India Mandates Energy Storage Capacity for State Utilities
India's government will soon require state-owned utilities to enhance energy storage capacity to optimize clean energy utilization.
India plans to mandate energy storage for state utilities to reduce power waste.
The federal government has approved a $1.54 billion program for energy storage development.
In September, India curtailed 118.6 GW of renewable energy due to storage limitations.
India is set to enforce a new regulation requiring state-owned utilities to significantly increase their energy storage capacity. This initiative aims to capitalize on the growing clean energy sector while minimizing waste from generated power. Pankaj Agarwal, secretary of the Indian Power Ministry, announced this development during the Bharat Renewable Energy Summit, highlighting the urgency of addressing the country's lagging storage capabilities.
The push for enhanced energy storage comes in response to recent data indicating that India curtailed approximately 118.6 gigawatts (GW) of solar and wind power in September due to various constraints. These included grid limitations, transmission issues, and a mismatch between energy demand and generation. JMK Research & Analytics noted that these curtailments were primarily driven by seasonal overlaps in renewable energy output and moderate demand, underscoring the need for improved storage solutions.
To further bolster its renewable energy infrastructure, India is planning to introduce additional clean energy tenders specifically for energy storage. Starting in July 2027, regulations will require developers of solar and wind projects to incorporate battery storage systems at their sites. This move is expected to enhance the flexibility and reliability of renewable energy sources across the country.
In a significant financial commitment, the Indian federal government recently approved a $1.54 billion initiative aimed at developing 92 gigawatt-hours (GWh) of grid-scale energy storage systems. The Viability Gap Funding (VGF) Scheme will support the establishment of various energy storage technologies, including 30 GWh of battery systems and 60 GWh of pumped storage projects. This funding is anticipated to improve the financial feasibility of these projects, accelerating the deployment of large-scale energy storage infrastructure in India.
Looking ahead, the implementation of these energy storage mandates and funding initiatives is expected to play a crucial role in enhancing India's renewable energy capacity. As the country continues to expand its clean energy initiatives, the focus on energy storage will be vital in addressing the challenges of power availability and ensuring a sustainable energy future.
