India Mandates Two-Hour Energy Storage for Solar Projects

22 Feb 2025 CW Team

If fully implemented, this mandate is expected to lead to the installation of around 14 GW/28 GWh of energy storage by 2030. The ESS requirement aims to address solar power intermittency and provide crucial support during peak demand hours. The MoP has recommended that REIAs explicitly mention the storage requirement in bid documents to ensure power availability during non-solar hours.

This move supports India’s goal of achieving 500 GW of renewable energy capacity by 2030 by enhancing grid stability, reliability, and optimal energy utilisation. ESS will help mitigate renewable energy’s intermittency by storing surplus power generated during low-demand periods and discharging it during peak hours. Storage systems can operate in single-cycle mode, charged by nearby solar power and discharged in the evening, or double-cycle mode, drawing power from the grid during low-demand periods and solar power when available.

As of December 2024, India’s total installed ESS capacity stands at 4.86 GW, comprising 4.75 GW of pumped storage projects and 0.11 GW of battery energy storage systems. According to the National Electricity Plan by the Central Electricity Authority, India will require 73.93 GW/411.4 GWh of storage capacity by 2032 to integrate its targeted 364 GW of solar and 121 GW of wind capacity.

In 2023, the Ministry of New and Renewable Energy set a bidding trajectory of 50 GW annually from FY 2024 to 2028 for all REIAs, including at least 10 GW of wind projects. In recent months, REIAs and state agencies have issued several standalone energy storage tenders to advance this strategy.

(Mercom)

The Ministry of Power (MoP) has mandated that all Renewable Energy Implementing Agencies (REIAs) and state utilities must include a minimum two-hour co-located energy storage system (ESS) equivalent to 10% of installed solar capacity in all solar tenders. Distribution licensees are also advised to consider a similar requirement for rooftop solar installations. If fully implemented, this mandate is expected to lead to the installation of around 14 GW/28 GWh of energy storage by 2030. The ESS requirement aims to address solar power intermittency and provide crucial support during peak demand hours. The MoP has recommended that REIAs explicitly mention the storage requirement in bid documents to ensure power availability during non-solar hours. This move supports India’s goal of achieving 500 GW of renewable energy capacity by 2030 by enhancing grid stability, reliability, and optimal energy utilisation. ESS will help mitigate renewable energy’s intermittency by storing surplus power generated during low-demand periods and discharging it during peak hours. Storage systems can operate in single-cycle mode, charged by nearby solar power and discharged in the evening, or double-cycle mode, drawing power from the grid during low-demand periods and solar power when available. As of December 2024, India’s total installed ESS capacity stands at 4.86 GW, comprising 4.75 GW of pumped storage projects and 0.11 GW of battery energy storage systems. According to the National Electricity Plan by the Central Electricity Authority, India will require 73.93 GW/411.4 GWh of storage capacity by 2032 to integrate its targeted 364 GW of solar and 121 GW of wind capacity. In 2023, the Ministry of New and Renewable Energy set a bidding trajectory of 50 GW annually from FY 2024 to 2028 for all REIAs, including at least 10 GW of wind projects. In recent months, REIAs and state agencies have issued several standalone energy storage tenders to advance this strategy. (Mercom)

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