India is set to witness a significant surge in its renewable energy (RE) storage capacity, with projections indicating an increase to 25–30 gigawatts (GW) by fiscal year 2027–28 (FY28) from nearly zero in FY25, according to a recent report by CRISIL Ratings.
Driving Factors Behind the Growth
The development in storage-backed RE capacity is expected to be driven by the central government’s efforts towards improving dependability and sustainability of renewable resources. Such efforts that combine energy storage with renewable energy sources such as solar and wind address the problem of variable renewable generation along with maintaining grid stability.
These systems can provide green power on a routine basis, say, during periods of peak load in the early morning and early evening hours and thus provide a more stable and balanced supply.
Increase in Storage-Linked Tenders
Reflecting the government’s push, there has been a notable rise in storage-linked renewable energy tenders. In 2024, these initiatives accounted for 25% (approximately 11 GW) of the total capacity offered by central government agencies, from 11% (2.5 GW) in 2023.
This boost reflects increased interest in incorporating storage solutions in India’s renewable energy policy for the purposes of improving the dispatchability and reliability of green energy.
Technical and Financial Considerations
CRISIL also observes that renewable projects involving storage tend to be “oversized,” normally by around 2.5 times of the contracted capacity, in order to achieve performance levels. This technical prerequisite goes to reflect the necessity of wise planning and investment to make such projects efficient and viable.
In spite of these obstacles, storage integration is viewed as a critical milestone towards India’s larger renewable energy targets, such as 500 GW of non-fossil fuel capacity by 2030.
Conclusion
The projected increase in India’s storage-backed renewable energy capacity signifies a pivotal shift in the country’s approach to sustainable energy. By resolving the intermittency challenges that are almost synonymous with renewable energy sources and grid stabilization, these innovations are well placed to enable India to transition into a cleaner, more resilient energy system.
