India’s rapid expansion of solar and wind power is increasing the need for greater flexibility and grid stability. It also calls for firm Renewable Energy Projects capacity. Against this backdrop, the Central Electricity Authority (CEA) has proposed new draft regulations that would require eligible Renewable Energy Projects commissioned after July 2027 to integrate Energy Storage Systems (ESS).
Under the draft framework, ground-mounted solar and wind power projects commissioned after July 2027 would be required to install energy storage with a minimum capacity equivalent to 10% of the renewable energy plant’s installed capacity. It would also require a minimum storage duration of two hours.
The proposed regulations also envisage progressively stronger storage requirements. Projects commissioned after July 2029 and up to June 2031 would be required to incorporate energy storage with a minimum duration of four hours. This reflects the growing need for longer-duration flexibility as Renewable Energy Projects penetration increases across the Indian power system.
The proposal comes at a time when India’s electricity grid faces rising challenges.
Moreover, it struggles with managing variable renewable energy generation.
Additionally, high solar output during daytime hours, combined with grid flexibility limits and limited demand absorption, can cause curtailment.
Energy storage can address this by shifting excess generation to periods of higher demand.
This shift reduces curtailment and improves the use of renewable energy assets.
Beyond storage requirements, the CEA draft also proposes that at least 15% of inverters used in renewable energy power plants commissioned after July 2027 should incorporate grid-forming controls. Grid-forming inverters can play an important role in supporting voltage and frequency stability as the share of inverter-based renewable generation rises within the electricity system.
These proposed changes could have significant implications for renewable energy developers, BESS manufacturers, and utilities.
In addition, mandatory storage can improve grid resilience and support renewable energy integration.
Its implementation will need to carefully consider project economics, technology readiness, procurement timelines, and the availability of suitable storage solutions.
NETRA convened a stakeholder consultation to examine the implications of the proposed CEA framework. It also gathered industry perspectives on how mandatory energy storage and grid-forming requirements can be implemented effectively.
Additionally, the discussion brought together experts from the renewable energy and energy storage ecosystem, including:
Firstly, Shrine Sivakumar Vepakomma, Director (Power Systems), Solar Energy Corporation of India Limited (SECI).
Additionally, Nitin Sharma, Founder & CEO, Newen Systems Pvt. Ltd.
Furthermore, Mohit Bhargava, Country Director, India Energy & Climate Center (IECC).
Finally, Netra Walawalkar, Vice President, NetZero Energy Transition Association — Moderator.
The consultation focused on the appropriate scale and duration of storage.
Additionally, it examined costs and tariffs, technology choices, grid-forming capabilities, timelines, and India’s renewable energy and storage readiness.
The policy challenge lies in ensuring energy storage requirements strengthen grid reliability.
Additionally, they should also support renewable energy integration without creating unnecessary barriers to project development.
A well-designed framework can encourage greater deployment of BESS and other storage technologies.
It also provides developers and manufacturers with sufficient visibility to plan investments and build capabilities.
As India moves toward a power system with more renewable energy, energy storage integration will become more important.
Moreover, a predictable regulatory framework is critical to renewable energy growth, ensuring flexibility and reliability for a resilient grid.
