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CEA Clarifies Energy Storage Mandate for Future Solar Projects

The Central Electricity Authority (CEA) has clarified that the mandate requiring renewable energy projects to integrate a two-hour co-located energy storage system (ESS)—equivalent to 10% of installed solar capacity—will apply only to future tenders, leaving past projects unaffected. Ongoing government programs, including the PM Surya Ghar: Muft Bijli Yojana, will continue under existing provisions.

The ESS mandate aims to mitigate intermittency, ensuring power availability during peak demand. It allows single-cycle (solar-charged, evening discharge) and double-cycle (charged via solar and grid, discharged at peak hours) modes. The Ministry of Power has also proposed a two-hour storage requirement for rooftop solar, which could result in 14 GW/28 GWh of new energy storage by 2030.

As of December 2024, India’s installed energy storage capacity stands at 4.86 GW, mainly from pumped storage (4.75 GW) and battery energy storage (0.11 GW). The CEA’s National Electricity Plan estimates that by 2031-32, India will require 73.93 GW/411.4 GWh of energy storage to support 364 GW solar and 121 GW wind integration. This includes 26.69 GW/175.18 GWh from pumped storage and 47.24 GW/236.22 GWh from battery storage, ensuring grid stability and optimized energy utilization.