Globally, the transition to clean energy is accelerating to reduce emissions and mitigate the effects of climate change. At the forefront of this effort is the expansion of renewable energy (RE) to help decarbonise the electricity grid. India has witnessed a significant transformation in its energy sector, with installed RE capacity increasing from 58 GW in 2010-11 to 220 GW as of January 2025, making it the fourth-largest in the world in terms of installed RE capacity.
Solar and wind energy dominate India’s renewable energy landscape, accounting for 55 percent and 33 percent of the total installed RE capacity (excluding large hydropower plants), respectively. Unlike fossil fuel-based thermal power, RE sources are inherently intermittent, posing challenges related to grid stability and reliability. To address these issues, energy storage solutions and advanced grid management techniques have been identified as key enablers for ensuring a stable RE power supply. As the share of renewables in the energy mix continues to grow, scaling up these support systems becomes increasingly crucial.
According to the National Electricity Plan (NEP) 20232 of the Central Electricity Authority (CEA), the energy storage capacity requirement is projected to be 82.37 GWh (47.65 GWh from Pumped Storage Plants (PSP) and 34.72 GWh from Battery Energy Storage Systems (BESS) in the year 2026-27. By 2031- 32, this requirement is projected to increase to 73.93 GW (411.4 GWh), with PSP contributing 26.69 GW (175.18 GWh) and BESS contributing 47.24 GW (236.22 GWh). As of December 2024, the installed BESS capacity in India stood at approximately 0.11 GW3, indicating a long trajectory ahead to bridge the gap to the projected targets. India has committed to a Nationally Determined Contribution (NDC) target of achieving 50 percent of its cumulative installed electric power capacity from non-fossil fuel sources by 2030. While the current pace of RE deployment is promising, it is essential to sustain this momentum throughout the decade.
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