Industry Odisha Bureau, Sep 05: India’s power ministry has proposed mandatory storage for renewable projects. The Central Electricity Authority drafted rules for solar and wind plants. Storage must equal at least 10% of installed capacity. It must also provide at least two hours of duration. Higher capex could accompany more predictable power dispatch.
The requirement forms part of a draft amendment to CEA regulations. These cover technical standards for electric plants and lines construction. Projects commissioned from July 2027 must install co-located storage. This applies specifically to new qualifying solar and wind projects.
Consider a 100 MW solar project under this proposed framework. It would need at least 10 MW of storage capacity. That storage must maintain a two-hour duration requirement. This does not mean continuous generation at that storage level.
Renewable-energy developers would face higher upfront capital expenditure under these rules. Adding storage capacity increases overall project development costs significantly. However, storage could enable more predictable electricity dispatch from projects. First Solar’s Sujoy Ghosh said dispatch predictability could improve project revenues.
The CEA previously issued an advisory on this issue last year. That advisory recommended co-locating storage with solar power projects. Its goal was improving dispatchability without mandatory regulatory backing then. The new proposal converts these recommendations into binding regulatory requirements.
Storage adoption is already underway across India’s renewable energy sector. Power utilities have been tendering projects with integrated storage components. Commercial and industrial users are pursuing similar storage-backed arrangements too. Renewable developers are building green energy projects for reliable electricity.
Comments on the draft proposal are due by October 4. Stakeholders will have opportunity to respond before finalization occurs. The proposal remains in draft form, not yet finalized regulation. Industry feedback could still influence the eventual regulatory framework.
The rules also address storage duration for later commissioning periods. Projects commissioned between July 2029 and June 2031 face revised requirements. This signals an evolving regulatory approach toward longer-duration storage mandates. Requirements may tighten further as India’s storage ecosystem matures.
The proposal reflects a broader shift toward dispatchable renewable electricity nationally. Balancing higher project costs against predictable power delivery remains central. Utilities, industrial users and developers will watch implementation timelines closely. Success will depend on how storage costs evolve alongside dispatch benefits industry-wide.
