India Mandates Energy Storage for Power Distributors by 2027

The Government of India plans to implement mandatory energy storage requirements for electricity distributors by March 2027. Power Secretary Pankaj Agarwalla announced the initiative at the Bharat RE Summit in New Delhi, stating that distributors must purchase energy storage capacity as part of their renewable energy acquisitions to prevent clean power wastage.

The mandate addresses grid instability caused by the fluctuating nature of solar and wind power. During the hottest months of this year, approximately 11% of solar power generated was lost to grid curtailments despite record demand. By requiring storage integration, the government intends to optimize existing transmission infrastructure and boost investment in battery technology.

To support the transition, the government will provide capital subsidies for storage projects, including batteries and pumped hydropower. The policy aims to ensure that renewable energy is captured and utilized more efficiently rather than being wasted during peak production periods.