India Mandates Two-Hour Energy Storage for Solar Projects to Boost Grid Stability and Reliability – EQ
In Short : India’s Ministry of Power has mandated a minimum two-hour energy storage system for future solar tenders to enhance grid stability. This requirement, covering at least 10% of project capacity, aims to support India’s 500 GW renewable energy target by 2030. The move is expected to improve supply reliability and reduce power costs during peak demand.
In Detail : The Indian Ministry of Power has issued a directive requiring all future solar projects to integrate a minimum two-hour energy storage system. This mandate applies to Renewable Energy Implementing Agencies (REIAs) and state utilities, ensuring that at least 10% of a project’s installed capacity includes storage. The initiative aims to enhance grid stability and manage the intermittency of solar energy.
By incorporating energy storage, the government seeks to provide a more reliable power supply, especially during peak demand hours when solar generation is unavailable. This move aligns with India’s goal of achieving 500 GW of non-fossil fuel capacity by 2030. It is expected to mitigate power fluctuations and reduce dependence on expensive peak-hour energy sources.
The advisory also encourages distribution licensees to implement similar storage requirements for rooftop solar installations. This would help manage excess solar generation during peak hours and improve overall supply reliability at the consumer level. The government anticipates that this policy could lead to the installation of approximately 14 GW/28 GWh of storage capacity by 2030.
Recent advancements in battery technology and declining costs have made energy storage solutions more viable. The government believes that integrating storage with solar projects will help lower power purchase costs in the long run. By stabilizing supply, the policy aims to create a more resilient and efficient renewable energy ecosystem.
As of December 2024, India’s installed energy storage capacity stands at 4.86 GW, comprising mostly pumped storage projects with a small share of battery energy storage systems. However, to support the integration of 364 GW of solar and 121 GW of wind power by 2031-32, the country is projected to require 73.93 GW/411.4 GWh of storage capacity.
The energy storage mandate is a crucial step toward India’s renewable energy transition. By ensuring better grid integration, reducing intermittency issues, and promoting energy reliability, this policy supports the nation’s long-term sustainability goals. It is expected to accelerate investments in battery storage infrastructure and strengthen India’s clean energy future.
