India’s 500 GW non-fossil fuel capacity target for 2030 needs to be accompanied by parallel grid-stability milestones, according to a joint report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Nangia. The report said the expansion of clean power must be supported by corresponding improvements in transmission, storage and institutional capacity.

Titled Grid Stability in India: From Diagnostic Assessment to a Reform and Implementation Roadmap, the report said the power grid is absorbing a growing share of smaller, weather-dependent and power-electronics-based generation. It noted that these changes are increasing the need for stronger system planning and operational coordination as renewable energy capacity expands across the country.

The report recommended resolving the legal framework for grid-forming technologies and establishing consistent definitions and thresholds for battery energy storage systems (BESS) above 50 MW. It also called for minimum national requirements covering grid inertia, the rate of change of frequency and system strength, including in regions with high concentrations of renewable energy projects.

Further recommendations included completing corridor-identification exercises for grid-enhancing technologies and congestion management. The report proposed a national framework for deviation settlement and demand flexibility, with defined parameters that would allow states to exercise discretion within agreed ranges. It also recommended blended finance for early-stage or higher-risk projects involving grid-forming technologies and measures designed to strengthen the power system.

The recommendations seek to align India’s clean power growth with the technical and regulatory systems required to maintain reliable electricity supply. By establishing common standards and clearer institutional responsibilities, the proposed measures would provide a framework for managing variability, congestion and changing system conditions as renewable generation increases.