While challenges around grid integration, storage deployment, and policy coordination remain significant, the convergence of favorable policies, technological innovation, and market dynamics creates unprecedented opportunities for industry leaders who can navigate complexity and execute at scale
As India crosses 180 GW of installed renewable capacity, effective integration into the grid demands advanced energy storage solutions. How is India enhancing its battery storage infrastructure to support round-the-clock renewable power?
Having crossed the significant milestone of 180 GW renewable capacity ahead of schedule, India now faces the more complex challenge of ensuring these resources deliver round-the-clock power. We’ve seen this challenge up close through our CAML lithium battery systems, which we’ve deployed across residential, commercial, and industrial applications. The Central Electricity Authority’s projections are telling – we need 236 GWh of battery energy storage systems by 2031-32, escalating to a staggering 1,840 GWh by 2047. This isn’t just about numbers; it’s about fundamentally reimagining how India’s grid operates. The government’s commitment is evident through the ₹5,400 crore viability gap funding for 30 GWh of battery storage systems, complementing the existing ₹3,700 crore scheme for 13.2 GWh projects.
What we’re witnessing is unprecedented scale – between 2022 and May 2025, India auctioned approximately 12.8 GWh of BESS capacity, yet only 219 MWh is operational. This gap between ambition and execution reflects immense potential for the industry. The projected ₹3.5 lakh crore investment in 47 GW battery capacity by 2032 represents not just infrastructure development, but job creation for over 600,000 people.
With the global battery energy storage market projected to surpass $190 billion by 2030, how are Indian investments aligning with this trajectory? What are the national targets, and how are domestic companies and global players contributing?
The global battery energy storage market’s trajectory toward $190 billion by 2030 presents India with both opportunity and urgency. Our domestic market, currently valued between $260 million to $7.8 billion depending on scope, is projected to reach $9-32 billion by 2030-33, with healthy growth rates exceeding 25-27% annually. India’s approach is distinctly strategic. Unlike markets focused purely on grid-scale deployments, we’re building a comprehensive ecosystem spanning manufacturing, deployment, and innovation. The Production-Linked Incentive schemes for battery manufacturing, coupled with our EV adoption targets, create synergies between transport and grid storage sectors. This integrated approach positions India not just as a consumer, but as a manufacturing hub for global BESS supply chains. The recent policy interventions by the government demonstrate this vision. The extension of Interstate Transmission System charge waivers for storage projects, combined with time block-based General Network Access allocation, creates favourable conditions for large-scale deployment. These measures, alongside the National Framework for Energy Storage Systems providing 40% viability gap funding, signal India’s commitment to leading rather than following global trends.
Despite the acceleration, challenges like intermittency, transmission bottlenecks, and grid integration remain. What are the most pressing obstacles today, and how is the national grid evolving to accommodate variable renewable power?
There is surely a need to bridge the transmission bottlenecks, considering the transmission bottlenecks for over 50 GW of renewable capacity as of June this year. Considering 42% shortfall in commissioned circuit kilometres of the targeted 15,253 kilometres in FY ’25, reflects quite an extensive execution and integrated approach. The technical complexity extends beyond infrastructure. India’s tight operating frequency band of 49.90 Hz to 50.05 Hz means even slight fluctuations from variable renewable sources can cause grid instability. This challenge is compounded by the fact that up to 71% of Interstate Transmission System corridors operate below 30% utilisation.
From Green Hydrogen Mission and PM-KUSUM to updated feed-in tariffs and Viability Gap Funding (VGF), what recent policy interventions are having the greatest impact? How does India’s regulatory strategy compare with global leaders?
The policy landscape has evolved dramatically since we started Loom Solar in 2018. The PM-KUSUM scheme, with its focus on agricultural solar applications, has created significant opportunities for distributed solar deployment. The scheme’s 30-50% central government subsidy for standalone solar pumps and grid-connected agricultural applications addresses both energy access and agricultural productivity challenges. The National Green Hydrogen Mission represents a paradigm shift toward next-generation clean energy applications. With its ₹19,744 crore outlay through 2029-30 and targets of 5 million metric tonnes annual production by 2030, the mission creates new demand vectors for renewable energy. The Strategic Interventions for Green Hydrogen Transition program’s focus on domestic electrolyser manufacturing aligns with India’s Aatmanirbhar Bharat vision while creating industrial demand for clean power. The updated feed-in tariffs and enhanced viability gap funding represent positive steps, but coordination between central and state policies remains challenging. States like Gujarat have successfully addressed land acquisition through blockchain-based mapping via the Swamitva portal, demonstrating that implementation innovation can overcome structural bottlenecks.
Innovations like smart grids, IoT-based energy management, and AI for predictive maintenance are transforming how renewable energy is generated, stored, and distributed. How are Indian firms leveraging these to improve efficiency and resilience?
The convergence of digital technologies with renewable energy infrastructure represents the most exciting frontier in our industry. We’ve integrated IoT-based monitoring into our solar AC modules, enabling real-time performance tracking and predictive maintenance capabilities. This mirrors broader industry trends toward intelligent energy management systems. Smart grids powered by IoT enable real-time energy load balancing, predictive maintenance, and automated grid management. The National Smart Grid Mission’s three-phase deployment across states like Gujarat, Haryana, and Telangana demonstrates practical implementation of these technologies. These projects integrate smart meters, SCADA systems, and advanced analytics to optimise power distribution and reduce transmission losses. AI applications in renewable energy are particularly promising for addressing India’s specific challenges. Google’s DeepMind algorithms have demonstrated 20% improvements in wind energy value through predictive forecasting up to 36 hours in advance. For India’s grid, which suffers transmission and distribution losses reaching 20%, AI-driven predictive maintenance offers significant efficiency improvements. The India Energy Stack initiative represents a comprehensive vision for digital transformation. This Digital Public Infrastructure aims to create uniform data protocols, interoperability standards, and plug-and-play ecosystems that enable seamless integration across generation, transmission, and distribution systems. The 12-month Proof of Concept by the Ministry of Power will test these concepts through selected utilities before national rollout. Machine learning applications span from energy forecasting to grid optimisation. AI systems can predict solar and wind generation patterns, enabling better demand-supply balancing while reducing curtailment. In Gujarat pilot projects, AI-driven models reduced prediction gaps between forecasted and actual solar generation by 30%, significantly improving grid management.
India’s renewable energy transformation represents one of the world’s most ambitious clean energy transitions. While challenges around grid integration, storage deployment, and policy coordination remain significant, the convergence of favorable policies, technological innovation, and market dynamics creates unprecedented opportunities for industry leaders who can navigate complexity and execute at scale. The next five years will be decisive in determining whether India achieves its 500 GW target while building the storage and grid infrastructure necessary for reliable, round-the-clock clean energy. Success will require the entire ecosystem – from policymakers to technology providers to financial institutions – working with shared urgency toward our common vision of energy independence and climate leadership.
