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Demand growing for solar plus storage projects: Govt to Rajya Sabha
States are also issuing renewable power procurement tenders and renewable power capacity is also being added in commercial and industrial sectors
The Renewable Energy Implementing Agencies (REIAs) have issued Letters of Award (LoAs) of 67,554 MW of renewable power procurement tenders since April 2023 highlighting the growing demand for solar plus storage projects, the ministry of new and renewable energy informed Rajya Sabha on Tuesday. There have been no cancellations after issuance of these LoAs.
India has already achieved 50% of its installed electricity capacity from non-fossil fuel sources, five years ahead of the target set under its Nationally Determined Contributions to the Paris Agreement.
As of 31 October, the installed capacity from non-fossil sources stands at about 259 GW, with 31.2 GW added only in the current financial year up to October 2025, the ministry said. The REIAs under MNRE include Solar Energy Corporation of India Limited (SECI), NTPC Limited (NTPC), NHPC Limited (NHPC) and SJVN Limited (SJVN).
States are also issuing renewable power procurement tenders and renewable power capacity is also being added in commercial and industrial sectors.
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“Thus, capacity addition of renewable energy is progressing through multiple pathways and not necessarily only through REIA led bids. With the declining cost of solar-plus-storage and dispatchable renewable power, there is a growing preference among distribution companies and end procurers for such solutions. This shift has been accompanied by a reduced demand for plain solar power. Solar-plus-storage configurations are also being preferred over wind-solar hybrid projects, particularly due to their ability to supply power during peak demand hours,” MNRE informed.
MNRE minister Prahlad Joshi was responding to questions by Trinamool Congress (TMC) MP Sagarika Ghose.
Ghose asked about the number of renewable energy projects found unviable and how many of those were cancelled. She also asked whether the cancellation of some renewable energy projects significantly impacts the country’s renewable energy targets and the steps being taken to offset the loss by awarding new contracts to viable projects. Lastly, she enquired about the steps taken to optimize transmission capacity and improve the contracting framework for renewable energy projects so that the Government’s net zero target by 2070 is met.
“The Government has sensitized the REIAs to move from plain solar tenders to tenders of Solar with Energy Storage, tenders with configuration to supply renewable power during peak hours and tenders with configuration to supply Firm and Dispatchable Renewable Energy (FDRE),” Joshi replied.
To facilitate the further execution of power purchase agreements in respect of bids issued by REIAs, the government has undertaken several proactive measures. These include urging States to comply with the Renewable Consumption Obligation (RCO) under the Energy Conservation Act, and advising REIAAs to aggregate demand from DISCOMs and other consumers before designing and issuing tenders.
Around 47.2 GW of Battery Energy Storage System (BESS) has been considered for planning of transmission systems up to 2032, Joshi said.
He added that according to the Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-state Transmission System) (Third Amendment) Regulations, 2025, connectivity is to be granted for solar and non-solar hours. This will further help in efficient utilisation of the transmission system.
