The Central Electricity Authority (CEA) has proposed mandatory energy storage for new renewable energy projects, in a draft amendment intended to bolster reliability and availability of clean power. The proposal would make storage a standard component of future plants and set technical benchmarks for power conversion systems. CEA framed the move as aimed at improving system stability and facilitating higher renewable integration.

Under the draft rules, projects commissioned after July one, 2027 must include energy storage capacity linked to their output, with a phased tightening for projects commissioned between July one, 2029 and June thirty, 2031. Those later projects would require co-located storage with a minimum four-hour duration at the same ten per cent capacity threshold. The draft sets a clear timeline for developers to incorporate storage into project planning and procurement.

CEA also proposed that at least 15 per cent of inverters in each renewable plant be equipped with grid-forming control and that all power conversion systems of battery energy storage systems have grid-forming capabilities to meet technical standards. The draft CEA Technical Standards amendment for construction of electric plants and electric lines has been released for consultation. Stakeholders and the public have been invited to submit feedback by October four, 2026, after which the amendments would be finalised and notified for enforcement.

Industry participants will need to reassess project designs, contract terms and timelines to align with the proposed requirements, and equipment suppliers may face increased demand for grid-forming inverters and integrated storage solutions. The measure is likely to influence capital allocation and project financing structures as storage becomes an integral part of renewable assets. CEA will proceed through the consultative process prior to formal notification and enforcement.