India's Accelerated Energy Storage Deployment And 30GWh Subsidy Mechanism

 

India's accelerated energy storage deployment and 30GWh subsidy mechanism leave grid congestion unresolved even with 2.56GW of battery capacity by 2025.

 

India's power grid is heavily reliant on fossil fuels and currently struggles to effectively manage the volatility of solar and wind power. Without increasing battery storage capacity, the country's vast renewable energy potential will be wasted.

 

Despite continued growth in clean energy, fossil fuels still account for 75% to 80% of India's electricity supply. Riesta Energy predicts that by the end of 2025, India's installed battery storage capacity will only reach 2.56 GW, far short of clean energy targets.

 

To bridge this gap, the Indian government has accelerated several initiatives. Production-linked incentive schemes for battery manufacturers and a 30 GW energy storage capacity viability gap funding mechanism have taken effect, initially supporting 13.2 GW of projects. In the first half of 2025, India has allocated 2.8 GW of stand-alone energy storage capacity and 9 GW of integrated photovoltaic-storage projects.

 

As annual renewable energy tenders move towards the 50 GW target, the market landscape is shifting. Pure photovoltaic projects are gradually losing ground as developers struggle to obtain timely power purchase agreements from distribution companies, leading to delays in commissioning and reduced profits.