India energy storage needs projected to reach 411 GWh by FY32

India’s energy storage requirements are projected to increase nearly eightfold to approximately 411 GWh by fiscal year 2032. According to a report by CareEdge Ratings, this growth follows an operational capacity of roughly 54 GWh as of June 2026. Meeting these targets will necessitate investments exceeding Rs 4 lakh crore, offering a major infrastructure opportunity over the next six years.

The shift highlights a transition in India’s power sector from a focus on capacity addition to the challenge of grid integration. While non-fossil sources account for 50% of installed capacity, they contribute only about 29% of electricity generation due to the intermittency of renewable sources. This imbalance is creating a deepening ‘duck curve,’ increasing pressure on conventional power generation and leading to significant solar energy curtailment.

To address these stability concerns, the Central Electricity Authority (CEA) has proposed making co-located energy storage mandatory for new ground-mounted solar and onshore wind projects commissioned after July 1, 2027. The proposal suggests a minimum two-hour storage duration with a capacity of at least 10% of the plant’s installed capacity. Requirements may become more stringent after July 2029, potentially increasing the minimum storage duration to four hours to better support evening peak demand.