Context
- India is rapidly scaling up renewable energy but faces a critical storage challenge. The renewable sources account for 53% (283 GW) of total installed power generation capacity of 532 GW.
- Solar power alone contributes over 150 GW, making it the largest source in the renewable mix. Solar generation drops to zero after sunset; wind output fluctuates with weather conditions. This creates a growing mismatch between electricity generation and demand timing.
What Is Energy Storage
- Energy storage refers to systems that store excess renewable electricity during high generation periods.
- They discharge it when demand rises but power generation remains low.
- At its core, energy storage converts electricity from renewable sources into storable forms.
Types of Energy Storage Systems
- Pumped Hydro Storage (PHS):
- Uses surplus electricity to pump water from lower to higher reservoir.
- When demand peaks, stored water is released downhill through turbines to generate power.
- Battery Energy Storage Systems (BESS):
- Stores electricity chemically and discharges when needed.
- Lithium Iron Phosphate (LFP) batteries dominate due to falling costs, high efficiency and long operational life.
- Concentrating Solar-Thermal Storage:
- Uses mirrors to capture and focus sunlight; heat stored in molten salt to produce steam and generate electricity.
- Compressed-Air Energy Storage:
- Stores compressed air in underground caverns; released to drive turbines when demand rises.
- Flywheel Energy Storage:
- Stores energy as rotational energy; useful for maintaining grid stability and managing short-term fluctuations.
- Gravity Energy Storage:
- Uses electricity to lift heavy weights; lowering them converts gravitational energy back to electricity.
India’s Energy Storage Capacity
| Parameter | Current | 2035-36 Projection |
| Pumped Hydro Storage | 7.2 GW | 94 GW |
| Battery Energy Storage | 0.27 GW | 80 GW |
| Total Energy Storage Target | — | 174 GW/888 GWh |
| Non-fossil fuel installed capacity | 283 GW | 786 GW |
- Government projects total energy storage capacity to reach 174 GW/888 gigawatt hours by 2035-36.
- This includes 80 GW/321 GWh of BESS and 94 GW/567 GWh of PHS.
Challenges Facing India
- Grid Integration:
- Deployment of storage systems with durations of around four to six hours is increasingly critical.
- Required to integrate larger volumes of renewable energy into the grid beyond 2030.
- Import Dependency:
- India imports nearly 75-80% of its lithium-ion cells used in battery storage systems.
- Lithium-ion cells account for roughly 80% of total cost of a battery storage system.
- One Asian country dominates over 75-80% of global battery manufacturing, creating supply chain risks and trade friction vulnerabilities.
- Project Pipeline Concerns:
- Currently 13,120 MW/78,720 MWh of PHS capacity is under construction.
- Another 9,580 MW/57,480 MWh has received concurrence and is awaiting construction.
- On BESS side, 10,658.94 MW/28,739.32 MWh of capacity is currently under construction.
Global Energy Storage Scenario
- PHS and BESS are the two most widely deployed electricity storage technologies globally.
- Global installed PHS capacity stands at around 160 GW.
- China leads with nearly 66 GW of installed PHS capacity; Japan at 21.8 GW and U.S. at 18.9 GW.
- Battery energy storage deployment is accelerating rapidly globally.
- Total installed BESS capacity estimated at around 270 GW globally.
- 108 GW of new battery storage was added globally in 2025 alone — a 40% increase over 2024.
- China is projected to dominate battery storage deployment through 2025, accounting for nearly 60% of global additions.
Way Forward
- India must reduce import dependency on lithium-ion cells through domestic manufacturing.
- Scaling up PHS and BESS simultaneously is essential to meet the 2035-36 targets.
- A Central Electricity Authority (CEA) long-term resource adequacy plan must be strictly implemented.
- Storage systems with four to six hour durations must be rapidly deployed before 2030.
- India must develop diverse storage technologies to avoid over-reliance on a single solution.
Conclusion
- Storing power is the critical missing link in India’s renewable energy transition. Without adequate storage, grid stability and energy security remain seriously at risk. India must urgently address import dependency, grid integration and project execution gaps to achieve its Viksit Bharat energy vision.
