Manohar Lal and Shripad Naik Chart Bold Path for Energy Storage and RE Integration

On August 4, 2025, the Ministry of Power convened a landmark meeting of its Consultative Committee, bringing together central government leaders, Members of Parliament, senior officials, and technical experts to deliberate on the next phase of India’s energy storage roadmap and the quest for robust future energy security. Chaired by Hon’ble Union Minister of Power and Housing Affairs, Shri Manohar Lal, and attended by Hon’ble Minister of State for Power and New & Renewable Energy, Sh. Shripad Yesso Naik, the session underscored the government’s deep commitment to renewable energy (RE) integration, grid stability, and sustainable economic growth.

Building a Resilient Energy Future: Key Themes of the Consultative Committee Meeting

Opening Deliberations and Sectoral Challenges

The Secretary (Power), Government of India, welcomed distinguished members and called for a candid, collaborative discussion on the challenges facing India’s power sector—notably the intermittency of renewable generation, grid variability, and the urgent need for modern storage and flexibility solutions. The Committee highlighted the critical role of energy storage systems (ESS) in achieving the following:

• Reducing generation variability from renewables like solar and wind

• Improving grid stability and reliability for consumers

• Enabling peak and energy shifting, allowing stored power to meet demand surges

• Providing ancillary services to support larger RE integration into the national grid

India's Climate Commitments and Energy Transition Targets

The Hon’ble Union Minister reaffirmed India’s bold climate commitments:

• Reducing emissions intensity of GDP by 45% by 2030 compared to 2005 levels

• Achieving 50% cumulative installed power capacity from non-fossil fuel sources by 2030

Significantly, it was announced that India has already reached 50% of installed electricity capacity from non-fossil fuel sources—five years ahead of schedule, marking a major global milestone in clean energy leadership.

Driving Policy for Energy Storage and Renewable Integration

Major Policy Initiatives

To ensure energy reliability and unlock the full value of RE, the Ministry has enacted a series of forward-looking policy measures:

• Resource Adequacy Mandates: Ensuring power generation capacity matches demand, with adequate reserves for peak hours.

• BESS Viability Gap Funding (VGF) Scheme: One of the world’s largest programs for Battery Energy Storage Systems (BESS), supporting the deployment of 43 GWh BESS capacity. Financial support totalling ₹9,160 crore has been allocated, making grid-scale battery storage commercially viable and attractive to investors.

• Waiver of ISTS Charges: All BESS projects commissioned by June 2028 and Pumped Storage Plant (PSP) projects awarded by the same date will be exempt from Inter-State Transmission System (ISTS) charges, greatly reducing operational costs and encouraging timely project execution.

Scaling Up Pumped Storage Plants (PSP) and Battery Storage

The Committee reviewed India’s growing momentum in hydro-based energy storage:

• Current PSP Installed Capacity: Approx. 6.4 GW

• Potential PSP Capacity: Over 200 GW identified nationwide

• Under Construction: About 8 GW

• In Pipeline: 61 GW at various planning and development stages

Battery storage and PSPs are seen as complementary, essential to balancing RE supply, enhancing grid flexibility, and future-proofing India’s power sector.

Member Contributions and Support for Smart Infrastructure

Consultative Committee members praised the government’s initiatives, especially the VGF scheme for BESS and the transformative role of smart meters in improving service delivery and reducing technical and commercial losses. Members emphasized the importance of integrating smart infrastructure—from distribution networks to advanced metering—to ensure reliable power, empower consumers, and maximize the benefits of energy storage.

Members also welcomed the collaborative approach of the Union Minister, urging the Ministry to continue incorporating stakeholder feedback and local innovations into future policy.

The Role of Energy Storage in India’s Power System

In his closing remarks, the Hon’ble Minister of State for Power and New & Renewable Energy, Sh. Shripad Yesso Naik, highlighted the transformational role of Energy Storage Systems (ESS):

• Flexibility for Renewable Integration: ESS enables seamless absorption of fluctuating solar and wind generation into the grid.

• Support Across Value Chain: Storage solutions are crucial not just for generation, but also for transmission, distribution, ancillary services, and electric vehicle (EV) integration.

• Pathway to a Modern Grid: ESS forms the backbone of a reliable, responsive, and future-ready power ecosystem.

He called on all stakeholders—including policymakers, industry, utilities, and technology providers—to support the ongoing evolution towards a resilient, affordable, and sustainable energy future.

The Ministry of Power’s Consultative Committee meeting marked a critical milestone in India’s clean energy journey. With strong political will, robust policy frameworks, and innovative financing, India is well-poised to lead the global energy transition, leveraging storage and smart grid solutions for a secure, green, and equitable power sector.

As India accelerates towards its climate goals and sets new benchmarks for RE and storage integration, the collaborative, solution-focused approach of the Ministry ensures that “power for all” will be clean, reliable, and future-proofed for generations to come.