India’s clean energy journey has been moving ahead at a brisk pace. The central government earlier announced a target to install 500 GW of electricity generation capacity from non-fossil fuel sources by 2030. Most of this will be derived from solar and wind power, which are variable and intermittent. To integrate these variable, intermittent renewable energy (RE) sources, energy storage systems (ESS) will be crucial for storing surplus power during periods of high RE generation to ensure a 24x7 electricity supply.
Moreover, ESS can provide critical ancillary services, including voltage control, frequency regulation and black-start capability. According to the 2023 National Electricity Plan published by the Central Electricity Authority (CEA), 208 GWh of battery energy storage systems (BESS) capacity is required by 2030 to enable the seamless integration of the growing share of RE into the grid. To support this energy shift, the Centre has implemented several coordinated policies, along with regulatory, supply-side and demand-side measures, to promote the development and deployment of ESS, including BESS.
Harmonised measures are imperative because the country is generating clean energy faster than the electricity grid can reliably and affordably deliver it to consumers. Curtailment statistics highlight this issue. From April to June 2026, 8,133 GWh of solar generation was curtailed or restricted, totalling more than eight billion units. In other words, although clean electricity was available, the grid failed to absorb or deliver it.
Rapid capacity expansion and low auction tariffs will not ensure that consumers receive affordable, clean electricity when and where they need it most. Accordingly, merely generating cheap wind and solar power is not the answer. Instead, a coordinated system is needed to ensure that generation, storage, transmission, grid operations, flexible capacity and power markets advance in tandem.
{{/usCountry}}Rapid capacity expansion and low auction tariffs will not ensure that consumers receive affordable, clean electricity when and where they need it most. Accordingly, merely generating cheap wind and solar power is not the answer. Instead, a coordinated system is needed to ensure that generation, storage, transmission, grid operations, flexible capacity and power markets advance in tandem.
{{/usCountry}}Therefore, electricity must be delivered 24x7 while remaining equally abundant, affordable, clean and reliable. This requires a paradigm shift in operations and grid planning because solar and wind output fluctuates with the weather. Shortfalls can be dramatic on cloudy, rainy days and during prolonged periods when the wind drops.
Moreover, extrapolating power demand from historical records can be challenging. The rapid rise of electric vehicles, data centres and industrial electrification is changing how, when and where electricity is consumed. Major industrial and computing zones can experience faster load growth than legacy power planning can manage. In such situations, traditional power planning fails.
In this context, adaptive planning helps by preparing for multiple future scenarios and adjusting power delivery to current conditions. Adaptive power planning relies on physical AI tuned for the grid, not LLM-linked generative AI. Physical AI is Artificial Intelligence designed for machines to perceive, reason about and act within the physical world, rather than merely processing data in software. It integrates demand, weather patterns, market information and plant and network data to evaluate potential conditions and compare physically feasible measures. By observing, anticipating, acting, learning and adapting, planning and operations form a continuous loop.
For solar, output surges during the day but falls in the evening, when demand rises. The system must then decide whether to charge storage batteries, adjust conventional generation, shift consumption or preserve reserves. All this must be done while providing electricity at the lowest feasible cost and emissions, without compromising reliability. Physical AI compares options, operators then decide, and the system learns from specific outcomes.
As renewables are intermittent and storage is limited, low solar or wind tariffs do not accurately reflect the cost of electricity at the meter. When generation and networks are developed separately and lack flexibility, consumers pay for the invisible costs of curtailment, underutilised capacity and delayed network reinforcement. As variable renewable energy penetration increases, these costs rise. A smart, adaptive electricity grid ensures that low-cost variable generation is not offset by escalating grid-stability costs and reliability issues.
With these challenges in mind, the Draft National Electricity Policy 2026 recognises the importance of resource and storage adequacy, flexible transmission, ancillary services, demand response, AI and interoperable data. Connecting them within a single, seamless framework represents the opportunity.
Currently, India’s RE transition stands at an inflection point, with non-fossil fuels accounting for almost 50% of installed capacity, which is now more than 250 GW. Yet they contribute only around 25% of actual power generation. These statistics highlight a growing gap between capacity and reliability. India has updated its Nationally Determined Contribution for 2035, with the main objective of deriving 60% of installed power capacity from non-fossil fuels, which could help position itself as a global leader in clean energy.
However, systemic inefficiencies remain a major challenge. For instance, 2.3 TWh of solar power was curtailed between May and December 2025 because of grid and distribution bottlenecks. Given these issues, the next phase requires a shift from expanding energy capacity to delivering reliable, affordable renewable power 24x7x365.
Against this backdrop, modernising electricity networks and promoting smart grid solutions will drive India’s shift towards an intelligent, more flexible, future-ready energy ecosystem. As India’s energy transition enters a more challenging phase, the success of this mission will depend on delivering affordable, abundant, reliable and clean electricity. For India’s smart electricity systems, the goal seems well within reach.
(The views expressed are personal)
This article is authored by Simarpreet Singh, executive director and CEO, Hartek Power.