India plans energy storage mandate for state power utilities
The government aims to reduce electricity shortages during evening and night hours by requiring utilities to install storage capacity.
The Indian government plans to require state power utilities to install energy storage capacity to address electricity shortages during evening and night-time hours, according to a Firstpost report. Power Secretary Pankaj Agarwal announced the proposed requirement at the Bharat Renewable Energy Summit on Thursday.
The move intends to help utilities store extra clean electricity produced during the day for use during peak demand periods. The government has not yet established a specific timeline or the exact amount of storage capacity state utilities must install, as the situation is still evolving, Agarwal said.
The proposal follows the Union Cabinet's Wednesday approval of a Rs 14,500-crore viability gap funding (VGF) scheme. This programme aims to build 92 gigawatt-hours (GWh) of grid-scale storage between FY27 and FY31, which is expected to draw a total investment of Rs 97,600 crore.
The scheme will support 60 GWh of pumped hydro storage, 30 GWh of battery energy storage systems, and 2 GWh of new storage technologies. Public and private electricity distribution companies will be eligible for financial support under the programme.
India currently has more than 300 GW of non-fossil fuel-based power capacity but relies on coal-fired plants during the night when solar generation falls. Government data reported by Reuters showed electricity shortages reached 560 million kilowatt-hours in September, the highest level since August 2023.