The Central Electricity Authority (CEA) has clarified that the mandate requiring renewable energy implementing agencies and state utilities to incorporate a minimum two-hour co-located energy storage system, equivalent to 10% of the installed solar capacity, will apply only to future solar tenders and will not impact past projects.

The recently announced mandate had raised a few questions about its applicability to past projects.

The CEA clarified that all ongoing programs of the government of India, including the PM Surya Ghar: Muft Bijli Yojana, will continue to be governed by the existing provisions of the programs.

The energy storage requirement is expected to address intermittency challenges and provide critical support during peak demand hours. Renewable energy implementing agencies may explicitly include this provision in bid documents to ensure storage availability during non-solar hours.

The storage system can function in either a single-cycle mode, where it is charged using nearby solar power and discharged in the evening, or in a double-cycle mode, where it is charged using both solar power and grid energy during low-demand periods and discharged during peak hours.

The Ministry of Power had also suggested that distribution licensees consider mandating two-hour storage for rooftop solar installations. If implemented, this mandate is projected to install approximately 14 GW/28 GWh of energy storage by 2030.

These proposed measures aim to enhance grid stability, improve energy reliability, and optimize energy utilization while supporting India’s target of achieving 500 GW renewable energy capacity by 2030. Energy storage systems will play a crucial role in mitigating the intermittency challenges associated with renewable energy sources by storing excess energy during periods of low generation, thereby ensuring a more stable and efficient grid.

As of December 2024, India’s installed energy storage capacity stands at 4.86 GW, comprising 4.75 GW from pumped storage projects and 0.11 GW from battery energy storage systems.

According to the CEA’s National Electricity Plan, the country will require 73.93 GW/411.4 GWh of storage capacity to integrate 364 GW of solar and 121 GW of wind energy by 2031-32. This includes 26.69 GW/175.18 GWh from pumped storage projects and 47.24 GW/236.22 GWh from battery storage systems.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.