New Delhi: As India accelerates towards its ambitious 500 GW non-fossil capacity target by 2030, the country’s power sector is entering a decisive phase where grid stability, flexibility and round-the-clock reliability are becoming as critical as capacity addition itself, highlighted Bhupinder Singh Bhalla, Former Secretary, MNRE. He was speaking at the second day of the Indian Power & Energy Storage Conference 2025, organised by FICCI which brought together policymakers, regulators and industry executives to chart a roadmap for a sector grappling with the complexities of renewable integration amidst managing thermal assets.
The conference was supported by the Ministry of Power, Ministry of New & Renewable Energy and Central Electricity Authority.
Bhalla underlined that India has already achieved 254 GW of renewable energy capacity, taking the country past 50% non-fossil capacity in overall installed power capacity. He highlighted that renewables now account for 26% of total electricity generation, with a historic peak of 51% renewable generation on a single day this year. With peak demand expected to approach 300 GW in the coming years and electricity demand growing at 6–7% annually, he stressed that India would require nearly 230 GWh of energy storage capacity by 2030 to ensure grid stability, flexibility and reliability.
Drawing from India’s renewable journey, Bhalla stressed that capacity addition alone would no longer define success. “Reaching 500 GW is achievable, but the real challenge is integrating this capacity reliably into a rapidly expanding grid without compromising stability or affordability.”
Storage as Core Grid Resource
Speaking on technology, markets and manufacturing, R. P. V. Prasad, Managing Director, Envision Energy India Pvt. Ltd. emphasized that India is entering a decisive phase of high battery and energy storage penetration aligned with the 500 GW renewable energy target by 2030. “India is at a tipping point where falling battery prices, fast-charging ecosystems and strong policy support can enable storage to move from a balancing tool to a core grid resource that delivers resilience and flexibility at scale,” added Prasad.
Prasad called for against ultra-low bidding and weak technical standards, calling for robust safety frameworks, global best practices and diversified use-cases. To truly support a renewables-dominated grid, storage must be allowed to stack revenues across grid services, demand response and ancillary markets, while longer-duration solutions evolve to deliver baseload-like reliability.
Investment and Financing Push
Providing a market and investment lens, Ashish Mittal, Director, Energy & Commodities, CRISIL noted that energy storage has emerged as the defining theme of India’s power sector, with over 212 GWh of storage capacity already tendered in just five to six years. “Energy storage has moved from concept to execution, but this is only the beginning; achieving India’s 500 GW non-fossil target will require a cohesive national and state-level regulatory framework that gives investors long-term confidence,” said Mittal. Highlighting the role of finance and market design, he pointed to the need for innovative funding structures.
“Cap-and-floor mechanisms, viability gap funding and storage-as-a-service models will be critical to de-risk investments and unlock private capital at the scale India now needs.”
From the financing perspective, Ashok Sharma, Deputy Managing Director, State Bank of India highlighted that storage projects demand a fundamental shift in how risks are assessed and capital is deployed. “Energy storage is capital-intensive, with batteries forming a majority of project costs, and financing frameworks must evolve to reflect the unique risk and revenue profiles of these assets.” Sharma underscored the importance of domestic manufacturing and technology diversity.
“India must pursue storage manufacturing with urgency while remaining technology-agnostic, leveraging batteries, pumped storage and emerging solutions to build long-term, resilient infrastructure.”
Consensus on Storage Imperative
Summing up the deliberations, Sandy Khera, Country Manager & CEO, Enel Green Power noted that India’s energy transition has firmly moved from ambition to execution. “As renewable capacity scales rapidly, energy storage is no longer optional; it is indispensable for ensuring grid reliability, round-the-clock power and system-wide resilience.”
Khera highlighted that evolving policies, market structures and financial participation are creating early momentum, while cautioning against premature localization mandates. “India will need a portfolio approach, combining short-duration batteries, long-duration storage and pumped hydro, to meet diverse grid needs and make storage a strategic infrastructure for decades to come.”
The two-day discussions reinforced a clear consensus: energy storage now sits at the center of India’s clean energy transition, critical to delivering reliable, affordable and sustainable power as the country advances towards its 500 GW non-fossil capacity goal by 2030.
