The Centre is considering mandatory energy storage procurement requirements for electricity distribution companies as part of their renewable power purchasing arrangements.
The proposed framework is intended to reduce renewable electricity curtailment and improve the ability of distribution utilities to manage fluctuations in power generation.
Power Secretary Pankaj Agarwal indicated that the government intends to finalise the regulatory framework by March 2027.
The proposed requirements would cover licensed electricity utilities, while renewable energy developers would also face storage integration obligations.
Different storage requirements, including capacities equivalent to 10% and 20% of contracted power for two-hour durations, are being examined.
However, the government has not yet finalised the applicable thresholds.
The proposal comes at a time when India is adding significant solar and wind generation capacity.
While renewable installations have increased electricity generation potential, the availability of power does not always coincide with peak consumption periods.
Battery storage and pumped hydro facilities can help address this imbalance by storing electricity during periods of surplus generation and supplying it when demand increases.
For electricity distribution companies, mandatory storage procurement could create additional investment requirements in battery systems, grid management infrastructure and associated electrical equipment.
It could also encourage manufacturers to expand production of transformers, inverters, switchgear and power conversion systems.
The proposed policy would represent another step towards integrating storage into India’s mainstream electricity procurement and distribution framework.
