At the 21st Global MSME Business Summit, organised by the Confederation of Indian Industry (CII), MNRE Secretary Prashant Kumar Singh mentioned that an initial mandate for 10 per cent battery storage might be introduced, with provisions for gradual scaling.

He explained that intermittency was a significant challenge, as solar energy is available for only 7-8 hours a day and wind energy is seasonal. With battery storage, however, renewable energy could provide continuous, round-the-clock power. Singh noted that recent tenders for projects combining solar, wind, and battery storage have shown competitive pricing compared to coal-based power plants. He also pointed out that falling battery prices now made it more sensible to move ahead with projects that incorporate battery storage rather than relying solely on standalone solar or wind projects.

On the sidelines of the summit, Singh shared that the mandate for battery storage could be announced soon. He mentioned that with declining battery prices, the government might initially require a small amount of mandatory battery storage in solar or wind plants, gradually increasing it as prices decrease further. He suggested starting with 10 per cent and potentially scaling it up to 30-40 per cent, depending on future price trends.

Singh also emphasised the urgent need for storage systems in areas where transmission infrastructure remains underutilised for most of the day. Earlier, the government had approved a Rs 37.60 billion viability gap funding (VGF) scheme for battery energy storage systems (BESS), which provides financial support of up to 40 per cent of the capital cost for projects totalling 4,000 megawatt-hours (MWh) by FY31.

Grid-scale storage systems are essential for managing fluctuations in renewable energy supply, storing energy for use during non-generation periods to ensure grid stability.

The MNRE mandate is expected to help achieve the government's target of 500 gigawatts (GW) of installed renewable energy capacity. Officials believe that including battery storage in solar and wind projects will make renewable energy more reliable and enable smoother integration into the national grid. The proposed mandate, combined with declining battery prices and government incentives, is likely to boost the adoption of storage systems in the renewable energy sector.