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New Delhi: The Union Ministry of New and Renewable Energy (MNRE) may soon mandate the inclusion of battery storage capacity in upcoming solar and wind power plants, according to a senior government official. The move is aimed at addressing the intermittency of renewable energy supply and ensuring round-the-clock power delivery.
Speaking at the 21st Global MSME Business Summit organized by the Confederation of Indian Industry (CII), MNRE Secretary Prashant Kumar Singh said an initial mandate of 10% battery storage could be introduced, with provisions to scale it up gradually.
“Today, we are dealing with this issue of intermittency. The adaptation of renewable energy is limited because solar is available for 7-8 hours and wind is seasonal. If you use battery storage, it becomes a continuous, round-the-clock power supply,” Singh said.
He added that recent tenders for projects combining solar, wind, and battery storage have shown competitive rates compared to coal-based power plants.
“Now, with falling battery prices, it makes sense to move ahead and not have any standalone solar or wind projects,” Singh said.
Mandate expected soon
On the sidelines of the event, Singh said the mandate could be announced soon.
“Looking at declining battery prices, we may start with a small quantum of compulsory battery storage in solar or wind plants and gradually scale it up. Ten percent would be a good start. Depending on price trends, it can go up to 30-40%,” he said.
The secretary also highlighted the immediate need for storage systems in areas where transmission infrastructure is underutilized for large parts of the day.
Earlier, the government approved a ₹3,760 crore viability gap funding (VGF) scheme for battery energy storage systems (BESS). Under the scheme, financial support of up to 40% of the capital cost is being provided for projects totaling 4,000 megawatt-hours (MWh) by FY31.
Grid-scale storage systems are considered essential for managing fluctuations in renewable energy supply. These systems store energy for use during non-generation periods, ensuring grid stability.
Renewable energy targets
The MNRE mandate is expected to support the government’s target of achieving 500 gigawatts (GW) of installed renewable energy capacity. Officials believe the inclusion of battery storage in solar and wind projects will make renewable energy more reliable and facilitate its integration into the national grid.
The proposed mandate, coupled with falling battery costs and government incentives, is likely to increase adoption of storage systems across the renewable energy sector.
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