India, a major player in the global energy market, faces complex challenges in achieving its goal of carbon neutrality by 2070.
The effectiveness of this energy transition depends on two key aspects: reducing the cost of energy storage systems and rapidly increasing the production capacity of renewable energy, especially solar energy.

The need to reduce the cost of energy storage systems

The prices for currently expensive battery storage systems must fall significantly.
Today, this cost is around 13 million rupees per MWh (155,192 USD).
In order to reduce dependence on coal-fired power plants, a significant reduction of around 50 percent is necessary.
The report by Ember and the Energy and Resources Institute highlights that if these costs were to fall by 7% annually, India’s use of coal-fired power plants could fall from 68% in 2023 to 50% in 2032.
This trend underlines the sensitivity of the Indian energy system to fluctuations in storage costs.

Challenges in the expansion of renewable energies and storage

At the same time, it is important to increase the use of renewable energies.
Solar capacity currently stands at 84 GW and is expected to increase to 375 GW by 2032, an average annual increase of 38 GW.
This is significantly higher than the recent additions of 10 to 14 GW per year.
However, India will not be able to achieve these goals without a significant improvement in its energy storage capacities.
Currently, only 44 GWh of storage capacity is planned by 2032, which is well below the original targets of the National Electricity Plan.
At the same time, coal remains a central part of India’s energy mix. Coal capacity could reach 286 GW by 2032, including the 27.6 GW currently under construction and the 54 GW currently in the planning phase.
This development is largely due to the slow progress of storage infrastructures and the high costs of alternative energy sources.

Need for investment in energy storage and infrastructure adaptation

It is imperative that India invest in more cost-effective energy storage technologies and increase the flexibility of existing power plants to enable greater integration of renewable energy into the power grid.
Coal-fired power plants will need to adapt their operations to compensate for the variability of renewable energy sources, which may require additional investment.
Due to a lack of storage capacity, the share of solar energy in the energy mix is ​​currently limited to 25%.
Energy planning strategies need to be adapted to take into account the expected savings in storage costs while ensuring the stability and reliability of the grid.
The report points out that without a significant reduction in storage costs, India may find it difficult to meet its climate goals while meeting rising energy demand.
The rapid development of the energy sector requires continuous adaptation of infrastructures and strategies.
Research and development in energy storage and expansion of solar capacity will play a key role in achieving India’s long-term energy goals.