In Short : India’s storage-backed renewable energy capacity is expected to reach 25–30 GW by FY28, up from nearly zero in FY25, according to Crisil Ratings. This growth, driven by government initiatives, will constitute over 20% of new renewable additions. Integrating storage addresses intermittency, enabling reliable power during peak demand and aligning with India’s goal of 500 GW non-fossil fuel capacity by 2030.
In Detail : India’s renewable energy sector is entering a new phase, with storage-backed systems emerging as a key enabler of sustainable and reliable power. According to a report by CRISIL Ratings, the installed capacity of such systems currently negligible is expected to scale up to 25–30 gigawatts (GW) by FY28.
What Are Storage-Backed Renewable Projects?
These projects combine renewable sources like solar or wind with energy storage solutions, enabling a consistent and scheduled power supply.
Unlike traditional renewables that are dependent on sunlight or wind conditions, these hybrid systems can dispatch power during peak hours, especially in the mornings and evenings or based on monthly/hourly demand patterns.
This helps stabilise the power grid and ensures a dependable energy supply.
Government Push Boosting Momentum
The central government is playing a crucial role in accelerating this transition. Its growing emphasis on making renewables more dependable has led to a notable increase in storage-linked tenders.
In 2024 alone, these projects accounted for 25% (about 11 GW) of the total renewable capacity tendered by central agencies, a sharp rise from 11% (2.5 GW) in 2023.
This surge reflects policy momentum aimed at integrating storage into India’s green energy roadmap.
Technical and Financial Challenges Remain
Crisil notes that these projects often require “oversising” typically about 2.5 times the contracted capacity, to meet their performance targets. As a result, India now has a pipeline of 34 GW of such storage-backed renewable projects.
However, most of this capacity is either in early construction or pre-construction phases, which means they are vulnerable to typical project execution risks. These include delays in finalising power purchase agreements (PPAs), financing hurdles, and implementation challenges.
Powering Stability in a Greener Grid
As India aims to scale up its renewable capacity while ensuring grid stability, storage-backed solutions are becoming essential. Their ability to provide firm, dispatchable power could reshape the country’s energy mix and reduce dependence on fossil fuels.
