MNRE to Mandate Battery Energy Storage in Solar and Wind Power Plants
The Ministry of New and Renewable Energy (MNRE) is considering mandating battery storage for new solar and wind projects, starting with 10 percent of a plant’s capacity, and gradually increasing it aligning with the decreasing battery prices, stated MNRE Secretary Prashant Kumar Singh at the CII's 21st Global MSME Business Summit.
December 17, 2024. By Mrinmoy Dey
He said that the government is planning to introduce an initial requirement of 10 percent of a plant's renewable energy capacity for storage, which may be increased over time.
Addressing the need to address the intermittent nature of renewable energy, Singh explained that integrating battery storage ensures a round-the-clock power supply.
The intermittent nature of RE power requires an energy storage system either in the form of battery energy storage (BESS) or pumped storage projects (PSP) for storing and regular realising of power which will keep the grid stable and ensure round-the-clock electricity supply.
He further added that recent tenders combining solar, wind, and battery storage have achieved competitive rates, outperforming some coal-based plants. With falling battery costs, the ministry intends to eliminate standalone solar or wind projects in favour of integrated systems.
In September last year, the government approved INR 3,760 crore viability gap funding (VGF) support for battery energy storage systems (BESS), providing up to 40 percent capital cost support for 4,000 MWh projects by FY31.
Singh asserted that grid-scale storage is critical for stabilising renewable power supply, storing energy for release during low generation periods. However, high costs have slowed adoption in India.
Singh emphasised that the new mandate will scale gradually, starting at 10 percent, and aligning with declining battery prices.
The initiative supports India’s goal of achieving 500 GW of installed non-fossil energy capacity by 2030. The government has also set energy storage obligations of 4 percent for power discoms by FY30, as part of a broader strategy to integrate storage with renewable generation, transmission, and distribution.
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