Author: PPD Team Date: 20/02/2025
The Ministry of Power (MoP) has issued an advisory to all state governments, central generating stations, and renewable energy implementing agencies (REIAs) on integrating energy storage systems (ESS) with solar power projects.
The initiative aims to improve grid stability, reliability, and cost efficiency as India targets 500 GW of non-fossil fuel capacity by 2030.
ESS will play a crucial role in improving grid reliability and optimising energy utilisation by storing excess solar energy for use during low renewable energy hours. To facilitate this, REIAs and state utilities are advised to incorporate a minimum of two-hour co-located ESS, equivalent to 10% of the installed solar project capacity, in future solar tenders. A compliance mechanism may also be introduced in bid documents to ensure the availability of storage during non-solar hours.
The MoP estimates that integrating 364 GW of solar and 121 GW of wind by 2031-32 would require 73.93 GW/411.4 GWh of storage. Implementing the proposed storage clause could lead to 14 GW/28 GWh of new ESS installations by 2030. Distribution licensees may also consider mandatory storage for rooftop solar projects.