India’s energy transition is entering a new phase, where storing renewable electricity and supplying it when needed will be as important as expanding generation capacity.
The Central Electricity Authority (CEA) projects that non-fossil sources will account for 70% of India’s installed power capacity by 2035-36, up from 52% in January 2026.
To support this transition, India will need an estimated 174 gigawatts (GW), or 888 gigawatt-hours (GWh), of energy storage by 2035-36.
As of July 2026, India had commissioned just 7.5 GWh of storage capacity, while another 140 GWh was under construction, tender or had been awarded.
Energy storage can help balance fluctuations in solar and wind generation, meet peak electricity demand and reduce dependence on fossil-fuel power.
It’s June 2035, a typical Indian summer month. The days are blisteringly hot and the nights barely cooler. Fans, air-conditioners and other cooling devices hum almost around the clock. Electricity demand is pushing towards a new peak, threatening to strain the grid. Yet the lights stay on. Power flows in from a mix of sources, each taking its turn to fill the gap as the day progresses. In the early morning and late evening, the conventional coal provides supply. As the sun rises, solar power takes over much of the load, allowing coal plants to take a back seat. Solar, in fact, continues to supply power well into the evening peak, while wind and hydropower provide a steady contribution through the day. There is no surge in the use of coal or other fossil fuels and thus no surge in greenhouse gas emissions.
This is what the new-age power system may look like, if the Central Electricity Authority’s (CEA’s) National Generation Adequacy Plan (2026-27 to 2035-36) is any guide. And at the heart of this seamless, renewable-dominated power supply lies a less-talked-about part of the system: energy storage.
Released in March 2026, CEA’s National Generation Adequacy Plan states that “the country is moving towards a strong transition to non-fossil energy”, with renewable sources, especially solar photovoltaic, hydro and wind, expected to dominate future capacity and strengthen energy security. By the end of 2035-36, CEA envisages India having 1,121 gigawatts (GW) of total installed capacity. The share of non-fossil-fuel sources is expected to rise to 70 per cent from 52 per cent in January 2026, while that of fossil-fuel sources is projected to fall to 30 per cent from 48 per cent. To accommodate such a large share of renewable generation and distribute it across the day, CEA estimates that India will require 174 GW, or 888 gigawatt-hours (GWh), of energy storage.
But is India’s energy storage sector developing fast enough to meet that ambition? The evidence so far suggests that may not be the case. Speaking at the 12th India Energy Storage Week in New Delhi, in July, Shripad Yesso Naik, Union Minister of State for Power and New and Renewable Energy, said India had commissioned 7.5 GWh of storage capacity, while 140 GWh was under construction, tender or had been awarded. Naik called for an acceleration in the deployment of energy storage systems and said: “For many years, India’s biggest concern was whether we could generate enough electricity. Today, the question has changed. Can we deliver the right electricity at the right time, at the right place?”
Put simply, storage turns intermittent renewable energy into dependable power. It can absorb surplus electricity when renewable generation is high and release it when demand rises or renewable output falls. It can thereby smoothen the fluctuations in renewable generation, shift electricity from periods of low demand to peak hours, provide ancillary services such as frequency and voltage regulation, reduce peak deficits. By helping integrate larger quantities of renewable power, it can also help reduce the need for more carbon-intensive generation.
A look at how India’s power sector works can help explain why storage matters more than ever. The national power grid relies heavily on coal-fired power plants, designed to run for long periods at high levels of utilisation, or plant load factors, and provide a steady supply of electricity. Their output helps maintain grid frequency and voltage, supporting system stability. Coal plants can also adjust their output to meet changes in electricity demand, which vary with the weather, economic and industrial activities and even festivals. Renewables, however, are different.
Solar and wind are the workhorses of India’s clean energy transition. By July 2026, these sources accounted for 31 per cent of the country’s total installed power capacity, with solar playing the larger role…
This article is part of the cover story "Power bank for transition 2.0", originally published in the October 1-15, 2026 print edition of Down To Earth