Top 5 Things India Must Get Right to Meet Its 2030 Targets: The Energy Storage Angle

India stands at a pivotal moment in its energy transition journey. The country recently achieved its 2030 renewable target of 50 percent integration in grid capacity, way before the deadline - five years ahead. Moving toward its even bigger target of achieving 500 GW of non-fossil fuel energy capacity by 2030, the pathway forward demands strategic precision. 

Based on a comprehensive grid modelling and analysis by India Energy and Climate Centre (IECC) - ‘Strategic Pathways for Energy Storage in India through 2032’ report, in the Reference Case scenario, India may achieve its 2030 target, and may even touch 600 GW by 2032.  By 2030, India’s energy mix may comprise about 315 GW solar, 119 GW wind, and about 64 GW Hydro capacities. 

Notably, the Reference Case scenario assumes utilities comply with the current state and national Renewable Purchase Obligations (RPO) and energy storage targets.

Here are the five critical measures India must prioritise to successfully meet its 2030 clean energy targets from energy storage angle. 

#1 Deploy Massive Energy Storage at Record Speed

Energy storage is the most essential to allay fears of variability of renewable sources - solar and wind. Rapid deployment of battery energy storage systems (BESS) addresses this key issue. India needs an unprecedented 61 GW (218 GWh) of energy storage by 2030, a tenfold increase from the current 6 GW capacity. This requirement will further expand to 97 GW (362 GWh) by 2032.

Without adequate storage deployment, India may need to build an additional 57 GW of coal capacity by 2030, potentially stranding existing thermal assets and undermining clean energy goals. Energy storage is critical for managing the significant variability introduced by renewable sources, with net load ramps potentially reaching 160 GW/hour by 2032.

The country must accelerate battery storage deployment, particularly 2-hour systems until 2027, transitioning to 4-hour batteries thereafter, the report suggests. It even foretells that Battery storage will dominate the mix, comprising 51 GW (164 GWh) by 2030, with 20 GW of 2-hour batteries and 31 GW of 4-hour batteries.

#2 Secure $300 Billion in Clean Energy Financing

Between 2023 and 2030, India's electricity generation sector requires USD 300 billion in new investments for its clean energy transition needs, which adds up to USD 380 billion by 2032.

Unlocking this investment needs to be prioritised to realise its 500 GW by 2030 goal. The report reveals that energy storage alone demands USD 30 billion, while the interstate / inter-regional transmission will need about USD 40 billion by 2030.

#3 Revolutionise Storage Integration Through Co-location

Energy storage deployment must be strategically concentrated in solar-rich states with high demand - Gujarat, Rajasthan, Maharashtra, Uttar Pradesh, Andhra Pradesh, and Telangana. These locations will require 13 GW, 6.3 GW, 7.8 GW, 6.7 GW, 3.8 GW, and 6.6 GW, respectively, by 2030.

Co-locating batteries with solar installations can reduce capital costs by 15-20 percent through shared Balance of System components. Solar power can charge batteries directly (DC), eliminating the converter and increasing round-trip efficiency.

With over 90 GW of installed solar capacity and 50 GW under construction, adding 15-20 GW of storage to existing solar sites without requiring new transmission infrastructure represents a cost-effective acceleration pathway. 

The report also suggests that the GoI should expand the existing Viability Gap Funding (VGF) scheme applicable to standalone battery storage systems to solar + storage projects. This could potentially enable an additional 50-100 GW of solar and 16-32 GW of storage capacity by 2027. 

#4 Establish Comprehensive Energy Storage Obligations Framework

The Ministry of Power's Energy Storage Obligations (ESO) require utilities to progressively increase storage from 1 percent in 2023-2024 to 4 percent of electricity demand by 2030 (equivalent to 200-250 GWh). 

The obligation requires that at least 85 percent of energy stored in ESS, on an annual basis, is procured from renewable sources, underscoring the emphasis on renewable-backed storage capacity. However, only a few states have adopted these obligations into their regulations so far.

All state regulators must expedite ESO adoption with coordinated oversight by CERC and SERCs. States can meet requirements through multiple approaches, such as storage installations for system operation, standalone storage solutions procured by utilities, and storage co-located with renewable generation.

Regulators must modify market rules to enable energy storage to deliver a full spectrum of services - energy arbitrage, capacity provision, and ancillary services - ensuring fair competition in wholesale electricity markets.

#5  Upgrading Transmission Infrastructure with Smart Grid Integration

India must add significant interstate and inter-regional transmission capacity by 2030 to support the growing demand and share of renewables. The report suggests that about 65 percent increase by 2030 is crucial to support the new energy. These translate to 200 GW of additional transmission capacity for the interstate corridors, and about 30GW for inter-regional corridors.

The analysis shows that maximum net load ramps could reach 160 GW/hour by 2032, requiring sophisticated grid management capabilities. Energy storage must provide 110 GW/hour of up ramps to meet system needs alongside other flexible resources.