A prominent feature of ancient India’s energy system was the overwhelming use of renewable sources. Biomass, animal power, water, solar and wind constituted the primary sources of energy. Ancient India developed some of the world’s most sophisticated water management systems. Tanks, reservoirs, canals, dams and wells were constructed across different regions. Water harvesting systems captured rainwater efficiently, especially in arid regions. Wind-powered maritime trade flourished along the western and eastern coasts.
Long before the world discovered photo voltaic cells and solar thermal power technology, ancient India utilised sun’s energy through architectural ingenuity, thermal storage and solar driven processing, including physical and chemical. This inherent orientation towards renewable sources gave ancient India a relatively sustainable energy structure.
Today, at the cusp of the energy crisis led by supply chain disruptions of crude oil and CNG/PNG, as well as associated environmental concerns, we are back to the emphasis on renewable energy. India’s commitment to the world community is strengthened by the Prime Minister’s assurance in COP 26 of ensuring 500 GW of clean green energy by 2030, achieving net zero emissions by 2070, meeting 50% of the country’s energy needs through renewable energy by 2030 and reducing carbon intensity by 45%.
Focus on large-scale infra development
{{/usCountry}}Focus on large-scale infra development
{{/usCountry}}Solar and wind energy are central to this transition, but their intermittent nature presents a significant challenge, not only to continuity and reliability of generation vis-a-vis demand, but also to the robustness of the transmission system. Solar power is available only during daylight: hence, generation is confined to solar hours, while wind generation fluctuates depending on weather conditions. Therefore, unless renewable energy can be stored efficiently in a cost-effective manner, India cannot fully replace conventional thermal power with renewable sources.
Recognising this challenge, the Government of India has adopted a comprehensive strategy to develop large-scale energy storage infrastructure. Through policy reforms, financial incentives, market design, infrastructure planning and technological innovation, the government is laying the foundation for a storage-based renewable energy ecosystem.
The government’s strategy encompasses battery energy storage systems, pumped storage projects (PSPs), green hydrogen, regulatory reforms, transmission planning, research and development, as well as manufacturing incentives.
India’s electricity demand is expected to more than double by 2047. Without adequate storage, the grid would experience renewable energy curtailment, frequency instability and peak demand shortages. Storage therefore performs multiple functions, such as peak load management, emergency backup grid balancing, frequency regulation, renewable integration and reduction of transmission congestion. Several steps have been taken to ensure storage.
Firstly, the viability gap funding (VGF) scheme aims at accelerating deployment of large-scale batteries by reducing capital costs. Secondly, the government has introduced energy storage obligations requiring electricity distribution companies and other obligated entities to procure a certain percentage of electricity from storage-backed renewable energy. The objective is to gradually create a mandatory market for storage technologies and ensure long-term investment certainty, faster deployment and, at the same time, create confidence among investors.
Thirdly, PSPs remain India’s most mature and economical large-scale storage technology. The government is streamlining approvals and encouraging private participation. India possesses an estimated pumped storage potential exceeding 100 GW, of which only a small fraction has been utilised. Fourthly, the Prime Minister launched the National Green Hydrogen Mission with an outlay of approximately ₹19,744 crore, for production of green hydrogen using renewable electricity, storing surplus renewable energy in chemical form, which would result in decarbonising of industries and reducing fossil fuel imports. Hydrogen can be stored for weeks or months, unlike batteries which are suited for shorter durations. Fifthly, the government has introduced the PLI Scheme for advanced chemistry cell battery storage. This scheme seeks to establish domestic manufacturing capacity for advanced batteries. The objectives include reduction in dependence on imports, promoting indigenous manufacturing, building a complete battery ecosystem and improving supply chain resilience.
Sixthly, the government is also promoting round-the-clock (RTC) renewable power. RTC combines solar, wind, hydropower, battery storage and pumped storage to provide continuous electricity comparable to conventional power plants.
Green energy corridor programme
It is important note that storage alone cannot solve the problem of integration of renewable sources, unless it is accompanied by adequate transmission. The government, therefore, is implementing the green energy corridor programme which involves high-capacity transmission lines, renewable evacuation systems, smart substations and grid modernisation. Since a smarter grid enables better utilisation of storage resources, India is developing one of the world’s largest integrated electricity grids. The measures include wide area measurement systems for real-time monitoring, SCADA systems, digital substations, automatic generation control and forecasting of renewable generation.
Tremendous research is being conducted in areas such as sodium-ion batteries, zinc-air batteries, flow batteries, solid-state batteries, thermal storage and hydrogen storage. These efforts aim to reduce costs and improve energy density, safety, and sustainability. The government is encouraging domestic production of battery cells, cathode materials, electrolytes, battery management systems and power electronics in order to reduce dependence on imports and enhance energy security.
Further, the Prime Minister has initiated the International Solar Alliance (ISA) on the concept of “One Sun, One World, One Grid”. India actively collaborates with global partners through the ISA and initiatives such as Mission Innovation and Clean Energy Ministerial. India has bilateral collaborations with Australia, Japan, the United States and the European Union, among others, which facilitate technology transfer and joint research and investment in energy storage technologies. The government is mobilising investment through green bonds, multilateral development banks, sovereign support, public sector financial institutions and public-private partnerships. Government-backed tenders reduce project risk, attracting domestic and foreign investors. Additionally, SECI’s two-way contract for difference (CFD) tender for market-linked renewable energy procurement backed by stabilization funds will to help transition the market from rigid long term power purchase agreements (PPAs) to financial market integration.
India’s approach to green energy storage has evolved from isolated pilot projects to a comprehensive national strategy. The principal approach for integrating large volumes of renewable energy addresses both the supply and demand sides of the storage ecosystem. It seeks not only to deploy storage assets, but also to build domestic manufacturing capabilities, create viable markets, modernise the electricity grid and encourage innovation. These initiatives will enable India to accommodate much higher shares of renewable energy, while maintaining grid reliability and affordability. All these measures will catapult India into a position of stability and abundance in the journey towards a Viksit Bharat.
(The author is a former chairman, Haryana Electricity Regulatory Commission & director, Bharat Ki Soch. Views expressed are personal.)