India’s renewable energy (RE) journey is gaining momentum. Storage capacity is set to skyrocket to 6 GW by 2028 from a mere 1 GW in 2024. This surge is crucial to accommodate the rising share of RE in India’s power mix.
However, challenges persist. Project implementation has been slow. Yet, the government’s push for RE development and competitive tariffs for round-the-clock renewable energy instill confidence.
Storage is becoming indispensable. RE generation, especially solar, is intermittent. This mismatch between supply and demand necessitates storage since surplus power needs to be stored for later use to maintain grid stability.
The government is actively developing infrastructure. Standalone and storage-linked projects are in the pipeline. Recent auctions have accelerated project development. A healthy pipeline of 6 GW projects is emerging.
To sustain a 20-22% RE share in the power mix, India needs at least this much storage but high tariffs for such projects compared to other RE bids hinder progress. Although government is trying to come up with competitive tariffs for storage projects.
India aims for 450 GW of RE capacity by 2030 from 130 GW in 2024. To achieve this, distribution companies (discoms) must increase their Renewable Purchase Obligations (RPOs) from 25% to 39% by 2028.
While challenges remain, India’s commitment to renewable energy and storage is evident. With sustained government support and industry collaboration, the country can successfully navigate the path to a clean energy future.
Reference- CRISIL Ratings PR Feed, MNRE website, Institute for Energy Economics and Financial Analysis (IEEFA), JMK Research & Analytics, PV Magazine India