New Delhi, September 8 (Daily Kiran) : India’s energy storage requirements are expected to increase nearly eightfold by the fiscal year 2032, reaching approximately 411 gigawatt-hours (GWh). As of June 2026, the operational storage capacity stood at around 54 GWh. This information was highlighted in a report released recently.
According to Care Ratings, achieving the targeted storage capacity will require an investment exceeding ₹4 lakh crore, presenting a substantial opportunity for infrastructure investment over the next six years.
The report emphasizes the critical role of energy storage. It allows for the storage of surplus solar power generated during the day, which can then be supplied during peak evening hours. This capability helps balance the net load curve, reduces power outages, and simplifies ramping needs.
Care Ratings noted that India’s power sector is shifting from merely expanding capacity to addressing integration challenges within the grid. While non-fossil sources accounted for 50% of installed capacity, their contribution to electricity generation was only around 29%. This discrepancy highlights the irregularity of renewable sources and a low Plant Load Factor (PLF).
The report indicates that the increasing use of solar energy is deepening the “duck curve.” The ramp-down in electricity demand during the morning rose from about 28 GWh in May 2025 to nearly 50 GWh in May 2026. Meanwhile, the ramp-up in the evening increased from approximately 68 GWh to around 80 GWh.
These trends are putting pressure on traditional power generation and contributing to renewable energy (RE) curtailments. Due to transmission and grid stability concerns, approximately 8.1 TWh of solar power was curtailed in FY27.
Sachin Gupta, Executive Director and Chief Risk Officer at Care Ratings, stated, “The Indian power sector is moving beyond the challenge of increasing renewable capacity to ensuring that renewable energy can be effectively integrated into the grid. As solar and wind capacity grows, the ability to store excess energy and utilize it during peak demand will become crucial.”
Tendering activities are also accelerating. In FY25, around 7 GWh of standalone storage-based tenders were issued, which surged to nearly 21 GWh in FY26.
The report notes that Battery Energy Storage Systems (BESS) and Pumped Storage Plants (PSP) will complement each other. BESS offers modularity, higher efficiency, and quicker deployment, while PSP provides long-term storage, asset longevity, and reduced dependency on imports.
The rating agency estimates the storage cost for both technologies at around ₹4.5-5 per unit, excluding input electricity costs but accounting for cycling losses.
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