The Ministry of Power (MoP) has mandated that all Renewable Energy Implementing Agencies (REIAs) and state utilities to incorporate a minimum two-hour co-located energy storage system (ESS) equivalent to 10% of the installed solar capacity in all solar tenders.

In an advisory to REIAs, state governments, and generating stations, MoP said distribution licensees could also consider mandating two-hour storage with rooftop solar installations. If the proposed mandates are implemented, the government expects approximately 14 GW/28 GWh of storage to be installed by 2030.

The ESS mandate is expected to resolve intermittency issues and provide critical support during peak demand hours. The REIAs may mention the requirement explicitly in the bid document to ensure storage availability during non-solar hours.

The Ministry has proposed these changes to ensure grid stability, reliability, and optimal energy utilization, fueling India’s target of achieving 500 GW of renewable energy capacity by 2030. ESS will also mitigate the intermittency challenges of renewable energy projects by storing excess energy during periods of low renewable energy generation, ensuring a more stable grid.

The storage system can function in single-cycle mode, where it is charged using nearby solar power and discharged during the evening, or in double-cycle mode, where it can be charged with energy from the grid during low demand hours and discharged during peak hours, in addition to utilizing solar power.

The MoP advisory said the installed capacity of ESS as of December 2024 is 4.86 GW, which includes 4.75 GW of pumped storage projects and 0.11 GW of battery energy storage system projects.

According to the National Electricity Plan published by the Central Electricity Authority, India would require 73.93 GW/411.4 GWh of storage capacity to integrate the targeted 364 GW of solar and 121 GW of wind capacity by 2032.

In 2023, the Ministry of New and Renewable Energy proposed a bidding trajectory of 50 GW annually for the financial years 2024 to 2028 for all REIAs, including at least 10 GW of wind tender.

REIAs and state agencies have tendered several standalone energy storage tenders over the last few months.

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