A prominent feature of ancient India’s energy system was the overwhelming use of renewable sources. Biomass, animal power, water, solar and wind constituted the primary sources of energy. Ancient India developed some of the world’s most sophisticated water management systems. Tanks, reservoirs, canals, dams and wells were constructed across different regions. Water harvesting systems captured rainwater efficiently, especially in arid regions. Wind-powered maritime trade flourished along the western and eastern coasts.
India’s commitment to the world community is strengthened by the Prime Minister’s assurance in COP 26 of ensuring 500 GW of clean green energy by 2030, achieving net zero emissions by 2070, meeting 50% of the country’s energy needs through renewable energy by 2030 and reducing carbon intensity by 45%. India possesses an estimated pumped storage potential exceeding 100 GW, of which only a small fraction has been utilised. Fourthly, the Prime Minister launched the National Green Hydrogen Mission with an outlay of approximately ₹ 19,744 crore, for production of green hydrogen using renewable electricity, storing surplus renewable energy in chemical form, which would result in decarbonising of industries and reducing fossil fuel imports.
Secondly, the government has introduced energy storage obligations requiring electricity distribution companies and other obligated entities to procure a certain percentage of electricity from storage-backed renewable energy. Fifthly, the government has introduced the PLI Scheme for advanced chemistry cell battery storage. Recognising this challenge, the Government of India has adopted a comprehensive strategy to develop large-scale energy storage infrastructure. Through policy reforms, financial incentives, market design, infrastructure planning and technological innovation, the government is laying the foundation for a storage-based renewable energy ecosystem. The government’s strategy encompasses battery energy storage systems, pumped storage projects (PSPs), green hydrogen, regulatory reforms, transmission planning, research and development, as well as manufacturing incentives. Firstly, the viability gap funding (VGF) scheme aims at accelerating deployment of large-scale batteries by reducing capital costs. The objective is to gradually create a mandatory market for storage technologies and ensure long-term investment certainty, faster deployment and, at the same time, create confidence among investors. Thirdly, PSPs remain India’s most mature and economical large-scale storage technology. The government is streamlining approvals and encouraging private participation. Hydrogen can be stored for weeks or months, unlike batteries which are suited for shorter durations. This scheme seeks to establish domestic manufacturing capacity for advanced batteries. The objectives include reduction in dependence on imports, promoting indigenous manufacturing, building a complete battery ecosystem and improving supply chain resilience. Sixthly, the government is also promoting round-the-clock (RTC) renewable power. RTC combines solar, wind, hydropower, battery storage and pumped storage to provide continuous electricity comparable to conventional power plants.
Today, at the cusp of the energy crisis led by supply chain disruptions of crude oil and CNG/PNG, as well as associated environmental concerns, we are back to the emphasis on renewable energy.
It is important note that storage alone cannot solve the problem of integration of renewable sources, unless it is accompanied by adequate transmission. Since a smarter grid enables better utilisation of storage resources, India is developing one of the world’s largest integrated electricity grids. The measures include wide area measurement systems for real-time monitoring, SCADA systems, digital substations, automatic generation control and forecasting of renewable generation. India actively collaborates with global partners through the ISA and initiatives such as Mission Innovation and Clean Energy Ministerial. India has bilateral collaborations with Australia, Japan, the United States and the European Union, among others, which facilitate technology transfer and joint research and investment in energy storage technologies. The government is mobilising investment through green bonds, multilateral development banks, sovereign support, public sector financial institutions and public-private partnerships. Government-backed tenders reduce project risk, attracting domestic and foreign investors. Additionally, SECI’s two-way contract for difference (CFD) tender for market-linked renewable energy procurement backed by stabilization funds will to help transition the market from rigid long term power purchase agreements (PPAs) to financial market integration.
The government, therefore, is implementing the green energy corridor programme which involves high-capacity transmission lines, renewable evacuation systems, smart substations and grid modernisation.
Further, the Prime Minister has initiated the International Solar Alliance (ISA) on the concept of “One Sun, One World, One Grid”.
