Govt may require 10% battery storage for new renewable projects
POWER & RENEWABLE ENERGY

Govt may require 10% battery storage for new renewable projects

The Union Ministry of New and Renewable Energy (MNRE) is considering making it mandatory to include battery storage capacity in upcoming solar and wind power plants to address the intermittency of renewable energy supply and ensure a continuous power supply, as per a senior government official. This move is expected to be implemented soon.

At the 21st Global MSME Business Summit, organised by the Confederation of Indian Industry (CII), MNRE Secretary Prashant Kumar Singh mentioned that an initial mandate for 10 per cent battery storage might be introduced, with provisions for gradual scaling.

He explained that intermittency was a significant challenge, as solar energy is available for only 7-8 hours a day and wind energy is seasonal. With battery storage, however, renewable energy could provide continuous, round-the-clock power. Singh noted that recent tenders for projects combining solar, wind, and battery storage have shown competitive pricing compared to coal-based power plants. He also pointed out that falling battery prices now made it more sensible to move ahead with projects that incorporate battery storage rather than relying solely on standalone solar or wind projects.

On the sidelines of the summit, Singh shared that the mandate for battery storage could be announced soon. He mentioned that with declining battery prices, the government might initially require a small amount of mandatory battery storage in solar or wind plants, gradually increasing it as prices decrease further. He suggested starting with 10 per cent and potentially scaling it up to 30-40 per cent, depending on future price trends.

Singh also emphasised the urgent need for storage systems in areas where transmission infrastructure remains underutilised for most of the day. Earlier, the government had approved a Rs 37.60 billion viability gap funding (VGF) scheme for battery energy storage systems (BESS), which provides financial support of up to 40 per cent of the capital cost for projects totalling 4,000 megawatt-hours (MWh) by FY31.

Grid-scale storage systems are essential for managing fluctuations in renewable energy supply, storing energy for use during non-generation periods to ensure grid stability.

The MNRE mandate is expected to help achieve the government's target of 500 gigawatts (GW) of installed renewable energy capacity. Officials believe that including battery storage in solar and wind projects will make renewable energy more reliable and enable smoother integration into the national grid. The proposed mandate, combined with declining battery prices and government incentives, is likely to boost the adoption of storage systems in the renewable energy sector.

The Union Ministry of New and Renewable Energy (MNRE) is considering making it mandatory to include battery storage capacity in upcoming solar and wind power plants to address the intermittency of renewable energy supply and ensure a continuous power supply, as per a senior government official. This move is expected to be implemented soon. At the 21st Global MSME Business Summit, organised by the Confederation of Indian Industry (CII), MNRE Secretary Prashant Kumar Singh mentioned that an initial mandate for 10 per cent battery storage might be introduced, with provisions for gradual scaling. He explained that intermittency was a significant challenge, as solar energy is available for only 7-8 hours a day and wind energy is seasonal. With battery storage, however, renewable energy could provide continuous, round-the-clock power. Singh noted that recent tenders for projects combining solar, wind, and battery storage have shown competitive pricing compared to coal-based power plants. He also pointed out that falling battery prices now made it more sensible to move ahead with projects that incorporate battery storage rather than relying solely on standalone solar or wind projects. On the sidelines of the summit, Singh shared that the mandate for battery storage could be announced soon. He mentioned that with declining battery prices, the government might initially require a small amount of mandatory battery storage in solar or wind plants, gradually increasing it as prices decrease further. He suggested starting with 10 per cent and potentially scaling it up to 30-40 per cent, depending on future price trends. Singh also emphasised the urgent need for storage systems in areas where transmission infrastructure remains underutilised for most of the day. Earlier, the government had approved a Rs 37.60 billion viability gap funding (VGF) scheme for battery energy storage systems (BESS), which provides financial support of up to 40 per cent of the capital cost for projects totalling 4,000 megawatt-hours (MWh) by FY31. Grid-scale storage systems are essential for managing fluctuations in renewable energy supply, storing energy for use during non-generation periods to ensure grid stability. The MNRE mandate is expected to help achieve the government's target of 500 gigawatts (GW) of installed renewable energy capacity. Officials believe that including battery storage in solar and wind projects will make renewable energy more reliable and enable smoother integration into the national grid. The proposed mandate, combined with declining battery prices and government incentives, is likely to boost the adoption of storage systems in the renewable energy sector.

Next Story
Real Estate

MHADA Invites Bids to Redevelop 34-Acre Kamathipura in South Mumbai

The Mumbai Building Repairs and Reconstruction Board (MBRRB), a division of the Maharashtra Housing and Area Development Authority (MHADA), has invited tenders for the redevelopment of Kamathipura in South Mumbai under the cluster redevelopment scheme. The area, known for being a historic red-light district, spans 34 acres and includes around 943 cess buildings, with a total of 8,001 residents—6,625 of whom are residential tenants and 1,376 non-residential. The area is also home to about 800 landowners, and most of the buildings are around a century old.The redevelopment will cover a total n..

Next Story
Infrastructure Urban

BMC Ropes in New Contractors to Speed Up Mithi River Desilting Work

The BMC has appointed two new contractors to complete the Mithi River desilting project after missing the deadline twice. The project had experienced significant delays due to an ongoing police investigation into alleged irregularities with previous contractors. The Mithi River, a key stormwater drain in Mumbai, plays a crucial role in mitigating urban flooding. Desilting began in April as part of the city's pre-monsoon disaster preparedness.Following the 2005 floods, the BMC prioritised regular maintenance of the river as part of its flood mitigation strategy. The desilting project is divided..

Next Story
Real Estate

Hyderabad Records Rs 40+ Bn in Property Registrations in May 2025

According to Knight Frank India’s latest assessment, residential property registrations in Hyderabad rose by 2 per cent year-on-year (YoY) and 5 per cent month-on-month (MoM) in May 2025—the first such increase recorded this year. Total value of homes registered have surged by 14 per cent YoY and 4 per cent MoM. Registrations for homes priced above Rs 1 crore grew sharply by 37 per cent YoY, accounting for 19 per cent of total registrations. The Hyderabad residential market spans across four districts—Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy—and includes transactions f..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?