Mumbai (Maharashtra) [India], September 8 (ANI): India's energy storage requirement is expected to rise to around 411 GWh by FY32 from around 54 GWh currently, requiring investments of more than Rs 4 lakh crore over the next six years, CareEdge Ratings said in a report on Tuesday.
The rating agency said India's power sector is moving from the challenge of adding renewable capacity to ensuring that renewable energy can be effectively integrated into the grid, making energy storage increasingly critical.
Non-fossil sources accounted for 50 per cent of installed power capacity, but contributed only around 29 per cent of electricity generation, reflecting the intermittent nature and lower plant load factors of renewable sources, CareEdge Ratings said.
The growing share of solar power is also deepening the "duck curve", with the morning ramp-down rising from around 28 GW in May 2025 to 50 GW in May 2026. The evening ramp-up from the day's lowest net load increased from around 68 GW to 80 GW during the same period.
This has increased pressure on conventional generation and contributed to renewable energy curtailment. Around 8.1 TWh of solar generation was curtailed in 3MFY27 due to transmission and grid-stability concerns, the agency said.
"India's power sector is moving beyond the challenge of renewable capacity addition towards ensuring that renewable power can be effectively integrated into the grid," said Sachin Gupta, Executive Director and Chief Rating Officer, CareEdge Ratings.
"As solar and wind capacity increases, the ability to store surplus energy and deploy it during periods of peak demand will become increasingly critical," he added.
The report said energy storage can absorb surplus solar generation during the day and discharge it during evening peak hours, helping smooth the net load curve, reduce curtailment and ease ramping requirements.
The National Electricity Plan envisages around 73.9 GW of storage capacity by FY32, comprising 47.2 GW of Battery Energy Storage Systems (BESS) and 26.7 GW of Pumped Storage Plants (PSPs), translating into an energy storage requirement of around 411 GWh.
Investment momentum is already building, with standalone storage-based tenders rising to around 21 GW in FY26 from 7 GW in FY25.
CareEdge expects both BESS and PSPs to play complementary roles, with greater storage deployment supporting grid flexibility and improving the reliability of renewable power. It said a balanced combination of renewable energy, storage, transmission infrastructure and conventional generation will remain critical for grid stability and India's long-term energy transition. (ANI)
India's energy storage requirement to reach 411 GWh by FY32, over Rs 4 lakh crore investment opportunity: Report
