India is set to trial the installation of battery storage systems at select coal-fired power plants, as part of a broader strategy to integrate the country’s expanding solar capacity while ensuring a steady and reliable power supply. The initiative, being led by NTPC with support from the Ministry of Power, was announced by Central Electricity Authority (CEA) Chairman Ghanshyam Prasad at the PowerGen India 2025 event in New Delhi.

India’s current energy landscape requires thermal plants to scale down output during daylight hours, when solar energy dominates the grid, but increase generation in the evening once solar production ends. However, coal plants are not designed for rapid start-stop operations, which leads to fuel wastage, operational stress, and increased maintenance costs.

To address this, the battery storage systems will absorb excess solar energy during the day and dispatch it during peak evening hours. This will allow coal plants to run at a stable output, reducing costs and extending equipment life.

“At times, there are only two choices—either shut down the coal plant during excess solar generation or lose capacity in the evening, which we cannot afford,” Prasad stated. “We are trying this as an experiment,” he added, confirming that NTPC had been assigned the pilot and provided funding support.

The CEA is currently drafting technical guidelines for minimum load requirements at coal-based power stations, as India rapidly ramps up its renewable energy (RE) installations.

A 2021 report by the International Energy Agency (IEA) projected that India’s coal power capacity will plateau by 2030, with solar capacity potentially reaching 800 GW by 2040. By then, the share of electricity generation from coal and solar sources is expected to converge, placing renewables at the centre of India’s power mix.

NTPC has recently floated a tender for 1.7 GW of battery storage capacity to be deployed across 11 coal-fired power plants.

India’s energy storage sector is also undergoing significant transformation, with batteries emerging as a commercially viable component of the power market.

According to an Ember report, merchant Battery Energy Storage Systems (BESS)—which buy and store power during low-demand periods and sell during price spikes—recorded their first-ever profitability in 2024. This milestone is attributed to declining battery prices and growing market volatility, making energy storage increasingly attractive to investors.

As India moves towards its 500 GW non-fossil fuel target by 2030, battery storage is set to play a vital role in ensuring grid flexibility, stability, and cost efficiency, while reducing reliance on coal during peak demand hours.