The Ministry of Power has issued an advisory mandating a minimum of 2-hour co-located energy storage systems (ESS) for new solar projects, equivalent to 10% of the installed capacity, in future solar tenders. This move aims to enhance grid stability, optimize energy use, and support India’s goal of 500 GW of non-fossil fuel capacity by 2030.
The advisory, issued to state governments, central generating stations, and renewable energy agencies, underscores the need for energy storage to address intermittency in solar and wind power generation. As of December 31, 2024, India’s total ESS capacity reached 4.86 GW, comprising 4.75 GW from pumped storage projects (PSP) and 0.11 GW from battery energy storage systems (BESS).
According to the National Electricity Plan published by the Central Electricity Authority, India will require 73.93 GW/411.4 GWh of storage capacity by 2031-32 to integrate 364 GW of solar and 121 GW of wind capacity. This includes 26.69 GW/175.18 GWh from PSP and 47.24 GW/236.22 GWh from BESS.
“In order to achieve this target, all Renewable Energy Implementing Agencies (REIAs) and state utilities are advised to incorporate a minimum of 2-hour co-located energy storage systems, equivalent to 10% of the installed solar project capacity, in future solar tenders,” the advisory stated.
The directive estimates that implementing the storage requirement could add around 14 GW/28 GWh of capacity by 2030. Falling battery prices may further lower power purchase costs during evening hours when solar generation is unavailable.
The advisory emphasized that adding storage to solar projects will strengthen grid stability, boost transmission efficiency, and reduce energy costs, ensuring the long-term growth of India’s renewable energy sector.
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